ITALY ON USG ROLE IN WORLD BANK'S MULTILATERAL

UNCLAS ROME 001413

SIPDIS

E.O. 12958: N/A
TAGS: EAID EFIN IT KPAO
SUBJECT: ITALY ON USG ROLE IN WORLD BANK'S MULTILATERAL
DEBT RELIEF INITIATIVE

REF: A. SECSTATE 59558


B. ROME 583


1. EconOff delivered reftel demarche April 14 to Giorgio
Guglielmino, Budget Director in MFA's Office of Development
Cooperation (ODC),and highlighted the USG's role in
proposing and supporting the World Bank's Multilateral Debt
Relief Initiative (MDRI),as well as U.S. leadership as the
single largest provider of development assistance.


2. Guglielmino applauded the continued leadership role of
the United States in development assistance, and lamented
ODC's difficulties due to severe budget cuts this year (ref.
B). Guglielmino noted, however, that center-left leader
Romano Prodi suggested, in a March 2006 pre-election speech
to ODC members, that a Prodi government could supplement
development assistance through the remainder of 2006 to reach
2005 levels. Note. Italy's 2006 budget cut development
assistance by 27.6% from 2005 levels. End Note.
SPOGLI