Monti Cuts 4.5 Billion Euro of Italy's Public Sector to Reduce Public Debt
Spending cuts to avoid the VAT increase and be in line with a balanced budget for 2013. Last night Mario Monti government approved the first phase of so called “spending review” to cut 4.5 billion in the public sector .
This is the goal of Mario Monti, the Italian prime minister, heading a technocratic government since last November. He is keeping the work of fiscal consolidation of the Italian state, the difficult and unpopular task that Italian politicians of recent decades have not been able or wanted to do.
Italy is a country with strong and hidden corporate lobby, and politicians have always responded to such strong powers without having the courage of a broad vision and competence for the country.
For this reason our economy for several years did not grow beyond the 1%, it has the highest rate of OECD country of illegal labor and corruption. Our welfare is the most significant weight of the public debt, which now has reached nearly 2 trillion. In the last nine months, the government Monti has done what no other politician in many years has never had the courage, competence and the political strength to do.
The government’s action if it had been done gradually and all over the past years, would have avoided the heavy sacrifices and the recession we are experiencing in recent months.
After the promulgation of the so called Decree “saving Italy” to achieve a balanced budget, Mario Monti "took Italy by the hair" avoiding the country the financial abyss.
Now the government is working to bring Italy to the growth and give structural reform that Italy needs from decades.
After the pension reform, which led to European levels of retirement age and have changed it from retribution to contribution, and the decree of the reform of the labor made by minister Fornero, strongly criticized by the social partners and representatives, now the government is moving towards cutting wasted money and jobs, "without hitting the services" as Monti said in a press conference.
The decree of the Council of Ministers lasted several hours, ended only late at night, it was about 2 am, when Monti explained where and what will be cut: halved the provinces, that is intermediate public authority between those local regions and municipalities; a cut of 5 million at Palazzo Chigi, the seat of central government; a cut of 20% of public managers, and 10% of public employees; cuts to so-called 'blue car', that in Italy are a disproportionate number . A text of 180 pages, packed with so many directions, especially a document it wants to begin the first phase of cuts in public spending, the sick man of the Italian state, made with a scalpel and not with the unjust linear cuts, unable to eliminate true inefficiencies.
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