The Italian Treasury may be signaling that it's on track toward writing some debt off of its balance sheet; market analysts, however, are questioning the prudence of such one-off measures in the long run.

The latest development shows that analysts have now joined the ranks of the EU government accounting watchdog Eurostat, questioning just how viable securitizations might be in terms of addressing the government's deficit. "One-time revenues such as securitizations, which have become a common feature of the Republic of Italy's debt-reduction strategy, are no substitute for recurrent measures to address the country's structural fiscal deficits," reported Standard & Poor's.

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