- Italian labour reform must tackle job market dualism, uncertainties on lay-offs
- Market confidence has grown compared to when Italy agreed to fund’s enhanced surveillance (thank goodness for the IMF is what I saw)
- Europe department is in daily contact with Italy
- Mission will visit country in 2 weeks time
- Insists on idea that ESM/EFSF should be allowed to lend directly to banks
- Seen progress in Spain on reforms, budget conslidation, must continue to do so
- Hopes fund’s resources will be boosted this week by more than $400 bln (she’s gonna need a bigger handbag)
- Credit crunch is less serious threat now than feared in December
- Ready to leave resource increase dossier open “for a few weeks”
Reuters reporting (except the bits in brackets, that’s my contribution)
