Italy’s Cabinet adopts anti-crisis measures
PM Mario Monti to give up salary
Italy’s Prime Minister Mario Monti said yesterday that Italy would put its vast debt under “strong control” as part of crisis measures approved by the Cabinet to stave off the threat of financial ruin.
The Italian Prime Minister also announced he would be giving up his salary.
“As sacrifices are being asked of all Italians, it seemed only right to give up my salary,” he said.
Italy’s Cabinet adopted a package of tax hikes and pension reforms worth €24 billion in a rush to ease a crisis that is threatening the eurozone, government sources said.
The Cabinet meeting had been scheduled for today but it was brought forward by Prime Minister Mario Monti in a bid to finalise the Budget reforms before the markets open in a crucial week for the future of the euro.
A former top EU commissioner who came to power just three weeks ago after the flamboyant Silvio Berlusconi was ousted by a wave of panic on financial markets, Mr Monti said Italy was at a dramatic crossroads.
“We’re faced with an alternative between the current situation, with the required sacrifices, or an insolvent state, and a euro destroyed perhaps by Italy’s infamy,” Mr Monti said ahead of the meeting.
Final approval of the reforms in Parliament is expected before Christmas.
Italy is under intense pressure from its eurozone neighbours and international investors to introduce draconian measures to rein in its public debt ahead of a crucial EU summit on Thursday and Friday.
Rome has already adopted two austerity packages this year but the European Commission indicated that the eurozone’s third largest economy would fail to reach its target of balancing the budget by 2013 without more belt-tightening.
Italian media reported that the proposals include an increase in housing and income taxes as well as new tariffs on luxury goods and a reform of the pensions system aimed at increasing the pension age for men and women.