Brussels, 30/11/2011 (Agence Europe) - The new Italian prime minister and finance minister, Mario Monti, told the ECOFIN Council in Brussels on Wednesday 30 November 2011 that Italy would be passing new austerity measures on 5 December (in time for the 8-9 December European Summit) in addition to the previous package unveiled to its European partners recently. The new package (Monti refused to talk figures) should save at least €11 billion and compensate for the lost income due to the slowdown in the country's economy and therefore help it meet its target of balancing the books in 2013. Monti said the measures had been “well received” by the ministers and the structural reforms would reduce the deficit in the short-term to ensure that even if the economy deteriorates further, the target of balancing the budget in 2013 would still be achieved. The “golden rule” will be added to the country's constitution, added Monti, explaining that the issue is already being debated by the Italian Chamber of Deputies.
Monti said that the markets would react to whatever was decided (or not decided) at the next EU summit, pointing out that Italy's new austerity measures were crucial for the future of Europe, echoing comments by EU Commissioner for the Euro Olli Rehn, who said this was a critical ten days for finding an answer to the crisis hitting the European Union. In this connection, the Italian prime minister said it was crucial that mechanisms were stepped up to ensure that public spending cuts already decided were properly implemented to ensure credibility. He said Italy was prepared to deal with an automatic penalties system if it broke the rules, saying that this would be fairer than discretionary penalties.
Mario Monti said that Italy would focus on the Community method to this end, planning to take action alongside France and Germany in close connection with the European Commission and EU member states not yet in the eurozone. He denied suggestions of IMF aid for his country, saying it was “out of the question”. (FG/transl.fl)