Italy unveils emergency austerity measures
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Xinhua, December 5, 2011
Italian Prime Minister Mario Monti on Sunday evening unveiled an emergency austerity plan aimed at bolstering the country's economy and warning off a dramatic debt-driven crisis.
The 30-billion-euro (over 40 billion U.S. dollars) austerity package, based on three pillars of public budget, welfare system and growth, was presented by Monti at a press conference after a three-hour meeting with his cabinet ministers.
The cabinet meeting was originally scheduled Monday, but it was anticipated following two-day of meetings with political parties, business associations and trade unions.
The package that Monti called an "Italy-saving decree" meant to "rescue the country" includes the reintroduction on the property tax on the principal residence, and new levies on some luxury goods such as yachts and luxury cars.
A major reform of the pension system, based on the principle that workers who retire earlier will receive lower pensions, will introduce a contribution-based system for all workers.
The minimum retirement age will be 66 for men and 62 for women, with an alignment for both female and male to 66 years old scheduled by 2018, while the introduction of a flexibility criterion will allow Italians to go on working until and older age, if he or she prefer so.
"No any euros contributing to Italy's growth can go lost," the labor and social policies minister, Elsa Fornero said, stressing the government's strong will to "eliminate" widespread underground work.
Entrepreneurial competitiveness, liberalization of closed professions and re-launch of industrial environment including infrastructures will be the three points aimed at enhancing growth, said Corrado Passera, the economic development and infrastructures minister.
He announced the creation of a credit guarantee fund of 20-25 billion euros (26 to 33 billion dollars) for small and medium enterprises.
"Fiscal incentives will go to those companies which go through a recapitalization in order to help them grow and create employment, in particular for youngsters and women,"he said.
A major transparency in public action, Monti pointed out, would accompany significant expenses cuts to local public administrations such as provinces, which would have a lower number of local political leaders, as well as the abolition of some public agencies.
Fighting high tax evasion will be "a priority of the government" that includes fixing stricter criterions for money traceability and higher use of electronic payment methods, as well as not resorting to any kind of tax amnesty, Monti stressed.
In order to "make politicians closer to Italian citizens in this common effort," the Italian premier, who is also acting as finance minister, also announced his choice to renounce both salaries of Italian premier and finance minister.
"The tough sacrifices we are asking Italians to do have to be seen with the prospect of a reawaken of the country," Monti stressed.
Italy must not be seen as a breeding ground but as a new strong force in the European Union so as to become proud of itself again and gain a major role in the world, he said.
Monti, a distinguished economist and former EU commissioner, sworn in November after Berlusconi resigned following a deepening of the debt crisis, with Italy's benchmark 10-year-bond spread yields surging to the 7-percent threshold.
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