Mario Monti launches radical reforms
Italian Prime Minister Mario Monti has laid out radical economic reforms aimed at cutting Rome's huge debt mountain, boosting growth and preventing his country from dragging down the eurozone.
Italy must stop being considered Europe's "weak link," he said on Thursday as he announced austerity measures which would be balanced by "growth and equity" to help lift Rome out of the eurozone crisis and affirm its place in the eurozone.
The senate overwhelmingly backed Monti's government in a confidence vote on Thursday and the new prime minister was expected to receive similar support from the lower chamber on Friday.
As well as planned cuts, Italy must "invest in its young and talented" and "tackle unfair privileges" enjoyed by certain sectors of society, Monti said.Monti, who is racing to implement initiatives demanded by Europe, including a pensions and labour market overhaul, told Italians fearful of losing their sovereignty that the reforms were not being "imposed by external forces.""It's not a case of them on one side and us on the other. We are Europe.""The future of the euro also depends on what Italy will do in the next few weeks," he said.Monti agreed with German Chancellor Angela Sarkozy and French President Nicolas Sarkozy, in phone talks, on the need to accelerate EU measures "to assure the eurozone's financial stability and growth."
Monti explained his plans "to restore market confidence and address Italy's economic situation," according to a joint text issued after their talks.Before the promised reforms can be set in stone, the new cabinet faced a confidence vote in the Senate late on Thursday, and the lower house on Friday.
Monti, who replaced the billionaire media mogul Silvio Berlusconi, is expected to win both votes easily. But he could face a political backlash when he begins implementing the painful and delayed economic reforms.
While he has won endorsements from all of Italy's main political forces so far, the economist faces a major challenge in steering a course through a fractious political world, with intense sniping from Berlusconi allies.
Thousands of students took to the streets in Italian cities ahead of his speech. In Milan they threw flares at riot police during protests against a technocratic government they fear will act in favour of fat cats and bankers.
(AKS-18/11)
Italy must stop being considered Europe's "weak link," he said on Thursday as he announced austerity measures which would be balanced by "growth and equity" to help lift Rome out of the eurozone crisis and affirm its place in the eurozone.
The senate overwhelmingly backed Monti's government in a confidence vote on Thursday and the new prime minister was expected to receive similar support from the lower chamber on Friday.
As well as planned cuts, Italy must "invest in its young and talented" and "tackle unfair privileges" enjoyed by certain sectors of society, Monti said.Monti, who is racing to implement initiatives demanded by Europe, including a pensions and labour market overhaul, told Italians fearful of losing their sovereignty that the reforms were not being "imposed by external forces.""It's not a case of them on one side and us on the other. We are Europe.""The future of the euro also depends on what Italy will do in the next few weeks," he said.Monti agreed with German Chancellor Angela Sarkozy and French President Nicolas Sarkozy, in phone talks, on the need to accelerate EU measures "to assure the eurozone's financial stability and growth."
Monti explained his plans "to restore market confidence and address Italy's economic situation," according to a joint text issued after their talks.Before the promised reforms can be set in stone, the new cabinet faced a confidence vote in the Senate late on Thursday, and the lower house on Friday.
Monti, who replaced the billionaire media mogul Silvio Berlusconi, is expected to win both votes easily. But he could face a political backlash when he begins implementing the painful and delayed economic reforms.
While he has won endorsements from all of Italy's main political forces so far, the economist faces a major challenge in steering a course through a fractious political world, with intense sniping from Berlusconi allies.
Thousands of students took to the streets in Italian cities ahead of his speech. In Milan they threw flares at riot police during protests against a technocratic government they fear will act in favour of fat cats and bankers.
(AKS-18/11)
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