EastBoston.com posts a statement from Italia Unita that it's calling off the annual festival because of the current economic climate:

... Due to the current economic climate locally and nationally, Italia Unita has been unable to secure financial commitments from corporate sponsors, grant funding and donations. In addition, the expenses associated with operating the three (3) day festival have also increased, averaging between $80,000 - $90,000. Italia Unita also has outstanding financial commitments from 2008 that have not been fulfilled. ...

The group hopes to bring the event back for 2010.

Via Jimbo.