Monti to Unions: new labor market rules need to favor economic growth

Italy is doing its part and will continue to do so, but it will be able to pursue even better its revival and growth process if Europe will soon do its part. Homework and common work: just like a good Principal, Mario Monti knows that the European class will finish its program and will bring itself out of trouble if there are synergies between the internal actions of the single Countries and the common action that the Union will have to take responsibility for.

With this in mind, the prime minister, meeting last Friday Nicolas Sarkozy, started talks that will bring him to meet within 15 days first Angela Merkel then David Cameron and finally the French president and the German chancellor in a three-way summit in Rome. An agenda that already indicates the credibility Italy has reacquired; now, however, that credibility has to be spent and has to be productive.

Monti is convinced that to do so, «we cannot think of going to France and Germany saying: we did our part, now it's your turn.» While preparing his next appointments, Monti repeats: «no, that is not the right approach. Here, each Country did some things and we certainly did many, I honestly think more than any other; but we will all have to continue to do our homework and in addition to that we all have to take, together, the necessary measures at a European level.»

These are fundamental measures, to approve «quickly». Because only common action to defend the euro will be able to produce a significant reduction in interest rates, helping the single Countries that are in the process of consolidating their accounts.

«Italy implemented several budget packages in 2011 and with the December decree it reached a real structural consolidation of public accounts,» Monti said. «Even last Friday in France we noticed the admiration there is in Europe for our efforts. But this is not a reason to stop now.» Now operation growth has to start and it «will be based on a series of regulations that will have to be approved within two months and in part by January 23rd: liberalizations, infrastructure, labor market reform on everything.»

At the same time, however, «we have to work together with our European partners, between the Commission and the Council, to improve what has not worked in the Eurozone governance.» Internal and European work, which are closely intertwined and it is precisely the Italian case that proves this, Monti insists.

«The conviction with which our public opinion will subscribe to the measures that we implemented and that we will soon propose will be even stronger if the results of those measures will be visible. And the results will be visible if interest rates drop from the current 7%, which is still exceptionally high. What has to take place for this to occur?» Monti continues with his reasoning: «until a short time ago one could say that interest rates were high because of the lack of consolidation of Italian accounts. Now, no one says that anymore. All the reports from large institutions and research centers explain that the reason for high interest rates lies in the risk of the euro zone, especially after the outcome of the December 8th European Council that was deemed as not adequate.»

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