Brussels, 24/02/2014 (Agence Europe) - The European Commission is awaiting the official inauguration of Italian Prime Minister Matteo Renzi's newly formed government by both chambers on Monday 24 and Tuesday 25 February, before commenting on its political programme and starting to work with it, said the spokesperson for European Commission President José Manuel Barroso on Monday. Barroso has already, however, welcomed Renzi's strong commitment to European integration and his resolve to work with the Commission in order to make a success of Italy's Presidency of the European Council of Ministers - which starts on 1 July.
The challenges awaiting the new government are great in a country where the very severe austerity policy and the heavy tax burden on households and businesses of recent years (in order to cut the public debt and address its European commitments) risk strangling the delicate beginnings of recovery which are shackled by continuing red tape and corporate burdens. On the political level, these measures are translated into mass unemployment - particularly among young people - and into the emergence of populist currents that can at any time threaten the permanence of governments that are having to rely unstable majorities.
To change the game, the new prime minister has set a tight timetable for bringing about a few priority reforms - a new electoral law, the reform of the labour market, and administrative and tax reform. In order to do this, Renzi has a reduced team of 16 ministers - half of whom are women - with an average age of 47. Renzi's ministers include Pier Carlo Padoan (former head economist at the OECD) for the Economy, Federica Mogherini for Foreign Affairs, Angelino Alfano for the Interior, Roberta Pinotta for Defence, Guiliano Poletti for Employment, Maurizio Martina for Agriculture, Federican Guidi for Economic Development, Gianluca Galletti for the Environment, and Maurizio Lupi for Infrastructure and Transport.
On the economic level, the focus will be on fighting unemployment, boosting competitiveness, reducing labour costs through “pay adjustments”, partially postponing the taxation of companies aiming for consumption, and strong competition on products and the factors of production, as well as incentives for investment and the employment of women. (FG/transl.fl)