Alexa
  • Directory of Taiwan

Italy industry lobby OK cuts but says not enough

Italy industry lobby OK cuts but says not enough

Italy's industrial lobby backed the government's proposed (EURO)24 billion ($30 billion) in budget cuts Thursday but warned that real structural intervention was needed to rein in the country's high debt.
Confindustria chief Emma Marcegaglia also urged the government to make the necessary reforms to spark economic growth during a speech marking the powerful lobby's 100th anniversary.
Her comments came a day after Premier Silvio Berlusconi bowed to market concerns about Italy's high debt load and bloated public sector and said the cuts were essential to restore confidence in the euro and to stop Italy from living beyond its means.
The measures would trim Italy's deficit from 5.3 percent of gross domestic product in 2009 to 2.7 percent by 2012 and are aimed at reassuring investors that Italy can handle its heavy debt load, which tops 115 percent of GDP.
Marcegaglia said the proposal contains measures that Confindustria had long sought.
"But structural interventions to cut the mechanisms of public spending are missing," she said. "Reforms to relaunch development are needed."
The measures must be passed by Parliament, and will face some public opposition with Italy's largest union pledging both demonstrations and a general strike next month.
During his speech Thursday at Confindustria, Berlusconi offered Marcegaglia the job of industry minister. Berlusconi himself has been acting industry minister ever since Claudio Scajola stepped down earlier this month because of a real estate investigation.
The offer was coolly received by the crowd, which included hundreds of Italy's top industrial leaders. "Well, don't blame the government then," Berlusconi said.


Updated : 2021-06-24 04:13 GMT+08:00