All eyes remained on Italy as Prime Minister Mario Monti on Monday promised to shift his attention to the growth of the Italian economy and job creation, according to the International Herald Tribune. Monti has been busy crafting a slew of austerity measures in the last few months aimed at getting Italy's debt crisis under control.
What measures are being proposed to stimulate Italy's economy?
Monti, who took office in November, replacing Silvio Berlusconi, has refused to get too specific on the details of his plan. What he has said was that his plans will include changes to the labor laws that will make it more advantageous to hire and fire workers, as well as measures aimed at lessening the power of guilds and unions.
What do Monti's austerity plans look like at the moment?
Monti's austerity plans, which contained some 40 billion euros in budget cuts and tax increases, were officially approved by the Italian Senate on Dec. 22, according to the International Herald Tribune. Approved measures include the reinstatement of a property tax on first homes, a raise in the nation's official retirement age, and new guidelines meant to crack down on tax evasion. If the plans work as designed, they will eliminate Italy's budget deficit by 2013.
U.S. Treasury Secretary Timothy Geithner was in Milan last week and praised Monti's efforts to cut Italy's debt and stimulate growth. According to Euronews, Geithner praised Monti's "credibility," as well as his commitment to strong economic reform and the future of the euro.
Monti said the euro was not really in crisis. What did he mean?
Monti was specifically talking about discussions about the euro's value against the dollar, as well as the perception that Italy's banking system is in danger of collapse, according to The Telegraph. He maintained that the debt crises being faced by several European Union members, including Italy and Greece, are part of a "systemic crisis" that is not specific to any one country. As such, he asserted that proposed changes made to the way that the EU operates in general should fix the problem.
Monti reportedly lost a member of his technocratic government to allegations of bribery. Will that affect his ability to institute his reforms?
Not necessarily. The deputy minister in question, Carlo Malinconico, has been accused of accepting free hotel accommodations in 2007 and 2008, according to Euronews. Malinconico's duties were centered around Italy's publishing and newspaper industries, and have little to do with Monti's overall plans.
Vanessa Evans is a musician, traveler, and freelance writer with an interest in European studies and events.
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