A fresh government drive to liberalise the Italian economy was hailed by consumer groups on Friday but also sparked protests, including one by fuel station operators who called a series of strikes.
The plan was approved by centre-left Premier Romano Prodi's cabinet late on Thursday in the form of a wide-ranging deregulation decree with immediate effect.
The reforms include streamlining business start-up rules, liberalising the opening hours of small businesses, abolishing certain mobile phone and bank charges and allowing supermarket chains to sell petrol and newspapers.
The measures follow a first deregulation package approved in July aimed at ending anti-competitive practices in several protected fields. These measures affected lawyers, notaries, pharmacists, taxi drivers, banks and car insurers.
Prodi said the new decree would further the government's goal of boosting competition and bringing down prices to the benefit of the consumer.
"Italy has been freed," the premier declared at a press conference on Thursday night.
"These measures are extraordinarily important and will change the face of Italy," said the former European Commission chief, who unseated his rival Silvio Berlusconi in last April's general election.
Industry Minister Pierluigi Bersani, the architect of the decree, said that "these reforms will make life easier for everyone... They benefit us as citizens and consumers".
Consumer groups said the decree would save families an average 550 euros per year and that many households would see their costs reduced by as much as 1,330 euros.
Consumer association Adusbef said families would save some 100 euros alone in car petrol bills.
Bersani said protests from certain sectors affected by the decree were inevitable but stressed he was ready to hold talks with them, in particular fuel station operators.
The operators are furious at plans to allow shopping centres and supermarkets to sell petrol, the abolition of rules establishing minimum distances between petrol stations and the extension of opening hours.
They said the changes could force them out of business and called 14 days of strikes.
The first, 48-hour stoppage will take place on February 7-8, unions said.
"The government is forcing an entire category of workers into an extremely tough response," they said.
Newspaper kiosk owners also threatened protest action over plans to allow supermarkets and other big retailers to sell papers and magazines, as well as the abolition of minimum distances between newspaper stands.
There was no comment as yet from mobile phone operators, who must now stop charging customers for recharging their phones.
Some operators charge a standard five euros for a recharge of up to 150 euros. Mobile phone companies raked in an extra 1.7 billion euros in 2005 from recharge fees.
The Antitrust Authority condemned the practice in November, noting that Italy was the only country in Europe where such charges were applied.
Mobile phone operators will also be required to stop selling prepaid cards which expire.
WIDE-RANGING REFORMS.
Other measures in the decree include the abolition of extra bank charges on overdrafts; more advantageous terms for mortgage holders; the elimination of some of the red tape for people opening up small businesses particularly hairdressers, barbers, beauticians and driving instructors; greater transparency in airfare advertising; a requirement for public services to accept payment using credit and banking cards, and clearer expiry dates on food products.
The decree will make it easier for motorists to take out car insurance or sell their vehicles, and allows them to use personalised number plates.
It also provides tax break incentives for individuals, businesses and non-profit organisations who give money to job-training institutes, and forces the post office to compensate customers if post is delivered late or goes missing.
Although the decree has already come into effect, it must now be approved by parliament to prevent it lapsing.
Consumer groups said they hoped it would not be watered down during the parliamentary process as protests gather pace.
"Bersani must hold out against the lobby groups and corporations and parliament must approve the decree as it is, without too many revisions," they said.
The government was forced to ease some of the terms of its previous deregulation package after violent protests from taxi drivers among others.
The Berlusconi-led opposition, meanwhile, was scathing in its verdict.
Former foreign minister Gianfranco Fini, who heads the rightist National Alliance, commented: "It's pathetic... Real deregulation doesn't start with hairdressers and newspaper kiosks".
Renato Schifani, Senate whip for Berlusconi's Forza Italia party, said that "these are small measures from a weak and small-minded government".
But Prodi shot back that "these are the sort of reforms that the centre right never had the courage to tackle".
