Italian workers strike over austerity measures

President Giorgio Napolitano says urgent action is needed to restore trust in Italy’s public finances Workers across Italy began a strike on Tuesday as Silvio Berlusconi’s government scrambled to secure parliamentary backing for a package of austerity measures. The eight-hour strike called by the CGIL, Italy’s largest union, is expected to disrupt public transport including air traffic, underlining a sense of emergency in the eurozone’s third largest economy. The strike, called to protest the €45.5bn (£40bn) austerity measures, coincides with the opening of a debate in the senate, which the government hopes will see swift approval before the package moves to the lower house. In an unusual statement that highlighted the gravity of the situation after a sell off of Italian bonds on Monday, President Giorgio Napolitano said urgent action was needed to restore trust in public finances. “It is a sign of the persistent difficulty in regaining trust as is urgently and indispensably required,” he said, adding that he urged all parties not to block measures needed to restore credibility. He said there was time to insert measures “capable of reinforcing the efficiency and credibility” of the austerity package passed in parliament last month. It is currently undergoing revision. Business daily Il Sole 24 Ore said an increase in VAT, a measure so far resisted by the economy minister, Giulio Tremonti, may be included in the package as well as a possible delay to retirement ages. The senate debate was due to take place on Tuesday afternoon, with upper house approval possible as early as Wednesday after the centre-left opposition Democratic party said on Monday it was willing to allow a swift vote. The package would then move to the lower house before final approval, originally expected by 20 September. The European Central Bank (ECB) has been shielding Rome from the full force of the market by purchasing Italian bonds to try to hold down yields and stop borrowing costs from reaching unsustainable levels. But its patience has been stretched by the chaotic manner in which the austerity package has been handled and by the absence of concrete steps to meet the government’s pledge of balancing the budget by 2013. On Monday, Mario Draghi, who takes over as head of the ECB in November, stepped up calls for Italy to act, delivering a pointed warning that the central bank’s willingness to continue buying bonds “should not be taken for granted”. Italy Europe Euro European Union Economics Europe European banks European Central Bank European debt crisis guardian.co.uk

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