Arab Today, arab today italy readies structural reforms with stocks down
Last Updated : GMT 21:08:55
Arab Today, arab today
Arab Today, arab today

Italy readies structural reforms with stocks down

Arab Today, arab today

Arab Today, arab today Italy readies structural reforms with stocks down

Rome - AFP

Italian Prime Minister Silvio Berlusconi vowed to hold a cabinet meeting to adopt new budget-cutting reforms by next Thursday under pressure from the European Central Bank as stocks crashed 6.65 percent in Milan. \"We have agreed to call a cabinet meeting by the 18th of this month,\" Berlusconi was quoted as saying at a meeting with trade unions on Tuesday. \"We have to act quickly. We have taken on heavy commitments,\" he said. Italian news reports said the government meeting would adopt a package of decrees, a move that would speed up the approval process of the measures. But reports from participants at the meeting said that trade union leaders were united in rejecting proposals to overhaul the labour market and the pensions system, calling instead for a reduction in bureaucratic costs and privatisations. The ECB this week began massive purchases of Italian bonds to prop up borrowing rates following a panic sell-off last week but in return it has called on the government to implement long-delayed structural reforms. In a 12-month bond auction for 6.5 billion euros ($9.3 billion) on Wednesday the yield was sharply down at 2.959 percent compared to 3.67 percent for a similar operation last month -- a sign of increased investor confidence. The bond auction however failed to stop a collapse in stocks amid investor nerves over the eurozone debt crisis. Stocks closed 6.65 percent lower -- the worst performance since April 2009 at the height of the global financial crisis. The difference between Italian 10-year government bonds and benchmark German bonds -- a measure of investor risk -- also climbed above 290 basis points. Berlusconi on Friday said Italy would speed up planned austerity measures to bring the budget back into balance by 2013 instead of 2014 -- but some analysts have cast doubt on the government\'s ability to implement cuts and reforms. Investors are nervous that Italy could be dragged into a public debt spiral. \"The austerity measures envisaged by the Italian government to reduce the deficit are a positive element but we have to see concretely how it plans to act,\" Chiara Cremonesi, an analyst at UniCredit, told AFP. Stefano Folli, a columnist for business daily Il Sole 24 Ore, wrote: \"Used to floating over problems and promising reforms that never come, Berlusconi\'s centre-right government has suddenly hit a wall. \"Either it climbs that wall by implementing the drastic and in some ways dramatic measures indicated by the ECB or it loses all legitimacy,\" he said. Financial information website Firstonline.info referred to criticism that Italian economic policy was now \"under administration\" by the ECB. \"An Italy under administration needs to raise funds. And it needs to do so quickly... There is no choice: following the ECB\'s orders is the only way to shield the country from speculation,\" commentator Carlo Musilli said. Among the proposals on the table listed by Italian newspapers were an earlier than expected increase in the minimum pension age, accelerated cuts in social welfare payments, a new tax on second homes and a wealth tax on savings. There are also proposals to cut perks and salaries for politicians, which are among the highest in Europe, amid rising public anger over austerity measures. Lawmakers called back from summer recess are also to meet on Thursday to discuss a constitutional amendment to enforce balanced budgets. Italian media reported that a letter from the ECB to Berlusconi demanded that the government proceed with the privatisation of municipal services and overhaul labour laws to allow easier firing of employees on permanent contracts.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today italy readies structural reforms with stocks down Arab Today, arab today italy readies structural reforms with stocks down

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: قضايا ساخنة
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday