Italian Prime Minister Mario Monti on Thursday
announced a series of measures designed to relaunch Italy's
struggling economy, including job market reforms, additional public
works investments and financial incentives for research and
development.
"Once again the timeframe will be quite swift, we are not allowed
to work calmly," Monti said of the measures, which are due to be
introduced next month.
The Italian premier, a former European Union commissioner who
heads a technocratic government, said the plans would not "make much
use of public money," in keeping with his government's target of
balancing the budget by 2013 and reducing Italy's huge public debt.
"I wouldn't have any objections if you were to call these measures
'Grow Italy'," Monti said.
Monti wants the measures in place ahead of key eurozone and
EU meetings scheduled for January 23 and 30.
Reforms of Italy's job market would also be necessary to encourage
youth employment, he said. The country currently has some of Europe's
strictest norms governing the hiring and firing of people, a
situation many critics say stifles entrepreneurship and investments.
Monti said the changes would be "fair," in keeping with a pledge
he made when taking office following Silvio Berlusconi's resignation
last month.
Earlier this month, parliament approved a package of austerity
measures worth some $39.2 billion, which
Monti has said is necessary to save Italy from bankruptcy.
The premier is under pressure to tackle 1.9 trillion euros of
public debt, which exceeds Italy's annual gross domestic product.
The austerity package consists mostly of new taxes aimed at
filling state coffers to assist the government in meeting its target
of balancing the budget by 2013.
Italy has seen a spike in its borrowing costs in recent months.
But on Thursday, interest rates on Italian government bonds fell
for the second day running, with the country's treasury raising
around 7 billion euro in four bond auctions.
In the most closely-watched auction, Italy raised 2.5 billion
euros from 10-year bonds at an average yield of 6.98 percent - lower
than the 7.56 percent it had to pay at an equivalent auction last
month.
