4 November 2011 The head of the International Monetary Fund, Christine Lagarde, has said that Italy's planned budgetary reforms "lack credibility".

Italy agreed a limited package of budget reforms on Wednesday evening.

But the Italian cabinet failed to agree to issue a decree implementing the changes, meaning that they must now go to a confidence vote in parliament.

Ms Lagarde said the IMF would carefully monitor the implementation of reforms, after Italy invited it to do so.

"We will go quarterly [to Italy]. We will check that what Italy has promised Italy is delivering. And if it is not delivering I will say so," Ms Lagarde told the BBC.

European Commission President Jose Manuel Barroso said that the commission would also step up its monitoring of Italy.

A team from the commission will travel to Rome next week, he said.