In its latest assessment of Italy, the International Monetary Fund (IMF) has asked Rome not to abolish the IMU, a property tax introduced by the previous government.

This may embarrass Prime Minister Enrico Letta, as one of the conditions demanded by his government's main ally, Silvio Berlusconi, for his People of Freedom Party joining the coalition was the abolition of the IMU, writes Corriere della Sera.

According to Milan daily, Letta may now have to disobey the IMF and find the money elsewhere — most likely by raising VAT.