Centre-left leader Romano Prodi urged his allies on Tuesday to start working together immediately to change the country, taking their election programme as a roadmap.
Prodi said the 280-page programme, which took his allies several weeks to hammer out, was designed to bring Italy "peace, economic recovery and social harmony". He confirmed his intention to pull Italian troops out of Iraq as soon as possible. The government of Silvio Berlusconi said it would withdraw troops at the end of the year, in agreement with allies.
Addressing supporters in a windy Roman piazza, Prodi said his Union alliance now had five years to work on the priorities listed in its electoral platform: economic growth, the environment, the family, employment, education, tax and foreign policy.
"Now we have to start working together to implement the programme and to change Italy. That's the only way we Italians can take a step forward," he said. He also called on centre right parties to collaborate on major reforms "for the good of the country".
Prodi made sure all his allies, ranging from hardline communists to liberals and Catholics, signed the joint programme in a bid to ensure his coalition would not unravel amid policy disputes.
His 1996-1998 government collapsed when a hard left ally withdrew its support. The following are some of the key points of the
programme:
Tax
One of Prodi's key election pledges is a 5% cut in payroll taxes and social security contributions paid by Italian businesses. He says this will be covered by fighting tax evasion and raising capital gains taxes. Prodi has also proposed restoring an inheritance
tax abolished by the Berlusconi government but only forassets worth more than "several million euros".
Economic growth
The proposed cut in payroll taxes and contributions is aimed primarily at reducing the cost of labour and so making Italian companies more competitive. The programme also refers to tax breaks for firms that invest in research.
Jobs
The centre left has vowed to promote stable employment rather than short-term contracts which it says leave workers in a state of low job security. It wants to raise social security contributions payable on short contracts so that, for an employer, non-permanent workers are no cheaper than permanent ones. The programme also contains a commitment to develop
tourism as a key national industry all year round.
Family
Prodi proposes introducing a monthly payment to families of 200 euros per child at least until the age of three and possibly until 18. This would replace traditional family support schemes and tax breaks that salaried employees with children get.
The programme also promises 3,000 new kindergartens and state-assisted family saving plans to pay for children's university studies.
One issue that has got Prodi in trouble with the Vatican is his commitment to introducing legislation recognising the legal rights of unmarried and same-sex couples.
Foreign policy
The programme talks about a commitment to the European Union and greater European integration. It says Italy must use military force only with a mandate from the United Nations or the EU.
The document repeats the centre left's pledge to pull Italian troops out of Iraq. Islamist terrorism must be fought primarily through intelligence, it argues. Little attention is paid to Italy's relationship with the United States, a cornerstone of foreign policy under Berlusconi.
Domestic issues
On immigration it says the current laws, approved by the Berlusconi government, should be replaced by new legislation. This would help legal immigrants integrate and toughen penalties for people who traffic in immigrants and exploit them.
Despite the reservations of Greens and hard-left parties, the centre left programme supports controversial work on a rail link through the northern Valle D'Aosta to France, part of a trans-European transport artery. Prodi has promised to put 1% of GDP into measures promoting culture and protecting the environment.
