Italy's Premier Mario Monti says he's encouraged by the results of two days of bond auctions which saw Italy's borrowing costs drop.
But at a year-end press conference Thursday, he said he didn't consider the market turbulence to be over.
He said his new government was working intensively on preparing a package of measures to get the Italian economy moving again, which will be presented to EU leaders on Jan. 23. He said it would focus on boosting competition and liberalizing the labor market.
Markets had grown fearful over the past few months that Italy can pay off its debts, which stand at around (EURO)1.9 trillion ($2.5 trillion).