http://www.ansa.it/web/notizie/rubriche/english/2012/02/24/visualizza_new.html_103397422.htmlBelt-tightening, reforms will be worth it, says Monti
Premier meets Irish PM Kenny
Sunday, 26 February 2012
24 February, 12:54
(ANSA) - Rome, February 24 - Premier Mario Monti on Friday promised that the tough reforms and belt-tightening his government is introducing will be rewarded in terms of economic growth.
Monti's emergency government of technocrats passed a tough austerity package of spending cuts and tax increases in December and it is now trying to bring in reforms to revitalise the Italian economy, which has been slipping into recession after a decade of sluggish performance.
"The measures to consolidate the budget, the rigor and the structural reforms may be difficult to take, but they generate growth," Monti said after meeting with Irish Prime Minister Enda Kenny in Rome.
The government is currently pushing a package of economic liberalisations through parliament and Monti has warned that he will not allow it to be watered down after amendments were presented to some of the more contested measures.
The administration has also presented reforms to cut red tape and is set to approve a package to increase the pressure on tax evaders and divert the revenue generated by this to lower the tax bills of low-income families.
The government is in talks with business associations and unions to reform the labour market and make it easier for women and young people to find jobs in a country where 31% of 15-to-24-year-olds are unemployed.
Monti has suggested he wants to make it easier for firms to fire workers, saying this would encourage them to hire, offering better benefits for people out of work in exchange.
The unions, however, are staunchly opposed to changes that would make it easier for firms to dismiss employees.
Former European commissioner Monti, who took over the helm of government after the debt crisis forced Silvio Berlusconi to resign as premier in November, said the way Ireland was tackling its own financial crisis "stimulated everyone".
"The way the Irish prime minister has turned around Ireland's economy and finances has been a big success in Europe," Monti said.
Kenny repaid the compliment, saying that Monti had "enhanced Italy's reputation in this period".
The Irish prime minister said the two leaders agreed on the need to boost Europe's financial firewall to stop states coming under speculative attacks on the financial markets.
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