Berlusconi signs deal to cover Torino budget shortfall

Berlusconi signs deal to cover Torino budget shortfall{mosimage}Italian Premier Silvio Berlusconi signed an agreement Friday to cover $159.11 million of the $195.82 million shortfall facing organizers of the 2006 Turin Olympics.

The deal allows the funds to go to the TOROC organizing committee through Sviluppo Italia, an agency linked to the Economy Ministry that promotes business development and investment. Plans to cover the remaining amount are still being worked out.

”Everybody has worked together to reach a result that will surely give prestige to our country,” Berlusconi said.

Under Italian law, the government cannot give money directly to the organizing committee. The funds go through a separate entity set up to get around the legislation.

”(The games) were a complex machine that needed the government’s help,” said Massimo Caputi, chief executive of Sviluppo Italia.

The ceremony was attended by government ministers, TOROC chairman Valentino Castellani and government-appointed Olympic supervisor Mario Pescante.

In March, Italy’s parliament gave approval to cover more than half the budget shortfall.

TOROC’s operating budget is about $1.5 billion. The figure doesn’t count funds spent by the government on infrastructure projects.

The Turin Olympics will run from Feb. 10-26.

-The Associated Press