Italy's new government contains no politicians
Source: Agencies |
November 17, 2011, Thursday
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Print Edition
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ECONOMIST Mario Monti formed a new Italian government without a single politician yesterday, drawing from the ranks of bankers, diplomats and business executives to make sure Italy escapes looming financial disaster.
The 68-year-old former European Union competition commissioner told reporters he will serve as Italy's economy minister as well as premier for now as he seeks to implement "sacrifices" to heal the country's finances and set the economy growing again.
Monti said his talks with party leaders led him to the conclusion "that the non-presence of politicians in the government would help it."
Monti was sworn in as prime minister by President Giorgio Napolitano yesterday, formally ending Silvio Berlusconi's three-and-a-half-year-old government as well as his 17-year political dominance.
Monti said he would lay out his emergency anti-crisis policies in the Senate today ahead of a confidence vote. A second vote, in the lower Chamber of Deputies, will follow, probably on Friday. He stressed that Italy's economic growth is a top priority.
Hopes for Italy's new administration won it some respite in financial markets yesterday. The yield on its 10-year bonds dropped 0.16 percentage points to 6.77 percent. In the last week, the rate has drifted over 7 percent - the level that forced fellow eurozone members Greece, Ireland and Portugal to seek international bailouts.
Until the summer, Italy had mostly avoided the European debt turmoil despite having a jaw-dropping level of debt - 1.9 trillion euros (US$2.6 trillion), nearly 120 percent of gross domestic product. But after frequent delays and backtracking on austerity measures, markets lost faith in a Berlusconi government fixing things.
Restoring confidence in Italy's financial future is crucial because, as the third-largest economy in the eurozone, it is too big for Europe to rescue. A debt default by Italy would threaten the euro itself and shake the global economy.
Monti gave few hints about his political program yesterday, sidestepping a question about whether the government would dip into citizens' bank accounts as it did decades ago during another debt crisis. "You may ask," he replied, but went no further.
The 68-year-old former European Union competition commissioner told reporters he will serve as Italy's economy minister as well as premier for now as he seeks to implement "sacrifices" to heal the country's finances and set the economy growing again.
Monti said his talks with party leaders led him to the conclusion "that the non-presence of politicians in the government would help it."
Monti was sworn in as prime minister by President Giorgio Napolitano yesterday, formally ending Silvio Berlusconi's three-and-a-half-year-old government as well as his 17-year political dominance.
Monti said he would lay out his emergency anti-crisis policies in the Senate today ahead of a confidence vote. A second vote, in the lower Chamber of Deputies, will follow, probably on Friday. He stressed that Italy's economic growth is a top priority.
Hopes for Italy's new administration won it some respite in financial markets yesterday. The yield on its 10-year bonds dropped 0.16 percentage points to 6.77 percent. In the last week, the rate has drifted over 7 percent - the level that forced fellow eurozone members Greece, Ireland and Portugal to seek international bailouts.
Until the summer, Italy had mostly avoided the European debt turmoil despite having a jaw-dropping level of debt - 1.9 trillion euros (US$2.6 trillion), nearly 120 percent of gross domestic product. But after frequent delays and backtracking on austerity measures, markets lost faith in a Berlusconi government fixing things.
Restoring confidence in Italy's financial future is crucial because, as the third-largest economy in the eurozone, it is too big for Europe to rescue. A debt default by Italy would threaten the euro itself and shake the global economy.
Monti gave few hints about his political program yesterday, sidestepping a question about whether the government would dip into citizens' bank accounts as it did decades ago during another debt crisis. "You may ask," he replied, but went no further.
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