- Juncker, Rehn confirmed their appreciation of Italy austerity package
- US debt ceiling deal hasn’t eased market tensions
- Markets still don’t reflect important decisions taken by EU on debt crisis
- Must bring certainty to markets
- Tensions not only affecting italy, also many others in euro zone
- As often happens in in confidence crises, markets not tightly assessing situation of Italy
- Italian banks well capitalized, credit to private sector stronger than in other countries
- Sell off in Italian bank shares, absolutely excessive
- Italy deficit targets respect what we agreed with EU
- Must improve quality of public services, free up reources for investments
- Essential government, parliament acts quickly on tax reform
- Govt committed to striking a deal with unions, employers on plan for growth
- Aims to reform labour market rules in agreement with unions
No mention so far of the possibility of bringing forward some future planned spending cuts….