Reactions to Monti's Austerity Plan "Phase Two"

| Tue, 01/24/2012 - 06:13

Italian Prime Minister Mario Monti moved to "phase two" of his cabinet's austerity plan. The new phase is devoted to boosting economic growth and further implement the three pillars of rigor, fairness and growth at the centre of the first 30-billion-euro (38 billion U.S. dollars) package of spending cuts and tax increases passed in December 2011 to put Italy's public finances in order.

Last Friday, the government passed some liberalisation measures by cabinet decree with the aim of reducing privileges for dominant companies and groups of professionals, who are believed to be using their respective guilds to limit access to their professions and reduce competition in their sectors.

The government liberalisation package includes measures to increase the number of pharmacies, taxis and notary offices, open up petrol distribution to greater competition and scrap red-tape hampering the start-up of businesses.

According to Premier Mario Monti these measures will inject dynamism into Italy's sluggish economy but many of the groups directly hit are opposing the government's decision.

As a consequence, yesterday Italy faced widespread transport chaos with lorry drivers and taxi drivers striking and staging protests in many parts of the country.

The demonstration, which followed a similar protest that caused massive disruption in Sicily last week, kicked off five days of demonstrations by lorry drivers protesting against soaring petrol prices which caused long jams on motorways.

Pharmacists' associations decided they will go on strike and close their shops on the 1st of February if the measures are not changed before the package's final approval in parliament. Lawyers will go on strike for two days on the 23d and 24th of February and plan more action in March.

This week disruption could be a taste of things to come with many groups of professionals threatening to go on strike and organise further demonstrations.

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