Italy's Monti warns Sicily may default | Seattle Times Newspaper

Premier Mario Monti says he's "gravely concerned" that Italy's autonomous region of Sicily may soon default.

Italian business groups, unions and politicians have been warning for over a week that Sicily might become the "Greece of Italy," thanks to years of financial mismanagement that has recently come to light.

Italian news reports say Sicily's government is (EURO)5 billion ($6.14 billion) in the hole and may soon be unable to pay salaries and pensions.

According to a statement from the premier's office, Monti sent a letter Tuesday to Sicily's regional president, Raffaele Lombardo, seeking confirmation that he would resign as promised July 31. He confirmed he would.

The statement was unusual, given Sicily's autonomy from Rome's central government, and reflected Monti's growing concern.

Monti and Lombardo are to meet next week.

The Associated Press