That’s the spirit
- Hopes the govt can reconcile citizens with national institutions
- Europe living hardest days sice WW2
- Can’t imagine EU will survive if euro zone fails
- Three pillars of policy will be budget rigour, growth and fairness
- Absence of growth has cancelled out sacrifices made by Italians so far
- Well known what Italy must do to boost growth, recipes often set out
- It’s a problem of Italian system to implemenmt the measures we know are necessary
- Improve public services, help young people, women to enter labour market are key goals
- Foreign investors in Italy bonds are guided by how they see Italy in 20-30 years, not just immediate return
- Also reforms with gradual effect on growth can reduce yields by boosting confidence
- If we fail to reform, the spontaneous evolution of financial crisis will expose us all to much tougher effects
- Relative weakness of our economy goes back to well before crisis
- Will study other countries’ experiences to assess how best to adopt balanced budget rule in constitution
- Will fully implement previous govt’s letter of intent to EU, consider necessity of additional measures
- Inevitable measures needed to reduce cost of politics
- Italy must quickly align itself with European best practices on public finances
- Italy pensions among the most sustainable in Europe
- Effective retirement age in Italy on average is higher than in France and Germany
- Italy pension system contains injustices
- Must tackle tax evasion
- Will re-examine structure of tax on property
- Will set out calendar for sale of public assets
- Tax burden high by historical, international standards, will set out gradual reduction
- Lower taxes on labour, output, compensated with higher tax on consumption would help growth without hurting public finances
- Must reform labour market, in cooperation with unions, to get rid of dual labour market
- Labour market reform will affect new contracts, won’t change already established contracts
- Must reduce gap between regular and temporary contracts which has encouraged firms to resort to the latter
- Increasing female participation in labour market cannot be delayed
- Need broad reform of welfare benefits
- Stronger growth requires improvement in education, training which is below international standard
- Italy needs foreign policy consistent with its commitments
As reported by Reuters.
That’s enough of all that……..
In fact PM Monti has just concluded his maiden speech to Senate.