Italy hit by protests as PM unveils economic plan
ROME — As protests erupted in Rome and other cities, Italy’s new premier unveiled his economic plan today, vowing to spur growth yet fairly spread the sacrifices Italians must accept to save their country from bankruptcy and the eurozone from a disastrous collapse.
As Mario Monti spoke, riot police clashed with anti-austerity protesters in Milan, signaling the depths of resistance the economist-turned-premier will have to overcome if his plan is to succeed.
“The end of the euro would cause the disintegration of the united market,” the former European Union competition commissioner told the Senate ahead of a confidence vote on his one-day-old government. “The future of the euro also depends on what Italy will do in the next weeks.”
Monti formed his new government Wednesday, shunning politicians and turning to fellow professors, bankers and business executives to fill key cabinet posts.
A day later he revealed plans to fight tax evasion, lower costs for companies so they can hire more and possibly lower taxes rates for women, to encourage their increased participation in the workplace. He warned Italians they must brace for more “sacrifices,” including the probable return of a property tax on primary residences.
“We must convince the markets we have started going down the road of a lasting reduction in the ratio of public debt to GDP. And to reach this objective we have three priorities: budgetary rigor, growth and fairness,” Monti said.
He said he would quickly work on lowering Italy’s staggering public debt, which now stands at $2.6 trillion, about 120 percent of its GDP.
