Demonstrators protest against pension reform in Milan
The savings plans of a new government of Italy chief Mario Monti meet with fierce resistance: In protest against the planned cuts by major unions have called for nationwide strikes this week.
In Italy, workers and employees of a call for a nationwide strike followed. In many cities, the people gathered on Monday (12/12/2011) on the streets to protest against government austerity measures. Thus opened the week with Italian unions strike many short-term work stoppages in different industries and sectors. The start went for three hours, dock workers, employees of highway maintenance and transit operations. The metal workers went on strike for eight hours. The targeted by Prime Minister Mario Monti savings träfen especially the workers and pensioners, rather than the rich, the bosses of the three leading unions, the first coordinated strikes justify the past six years.
The protesters are demanding more equity in the savings
The new Italian government had decided to start a savings program until December 2014, the expenditure cuts of around 30 billion €. In addition to a pension reform, property tax, luxury tax and the fight against tax evasion are also planned. The unions defend themselves, especially against the planned pension reform and tax on residential property. Monti had on Sunday evening or informally consult with the heads of the three major unions, CGIL, CISL and UIL - without success.
Unity in Parliament
"Given the emergency situation, the government will reform and savings plans in the sum does not change," admitted the government is still known in the early hours of Monday. The chairman of the CISL union, Raffaele Bonanni, said the unions were the one with Monti believes that Italy is in a "serious" crisis is. But the austerity measures must be balanced.
The pressure of financial markets remains high on Italy
Monti had brought the multi-billion austerity package a week ago in a high speed on the road to the heavily indebted Italy to bring the attention of the financial markets. Former EU commissioner wants to bring the reforms and cuts through parliament before Christmas. Except for the populist Northern League all parliamentary parties have announced their support. Even the EU, U.S., and not least the financial markets responded positively in recent days on Monti's plans.
Interest on government bonds fall slightly
Measured in terms of economic output Italy to Greece, the highest debt of the euro zone and stands at around € 1.9 trillion in debt. Even the promised savings, and the decisions of the EU summit have let fall the high interest rates on Italian government bonds only slightly. Rome on Monday gave bonds with a maturity of one year for a total of seven billion euros and had to pay interest of 5.952 percent. In early November the rate had been lying still at 6.087 percent. Are traded on the secondary market where previously issued government securities, yields on ten-year increase, however, Italian debt again.
