Monday, August 8, 2011

The ECB requires to help Italy

While the European Central Bank (ECB) began the purchase of the debt of countries in the euro area, the Italian daily Il Corriere della Sera revealed the conditions posed by the financial institution to assist Italy. A letter "secret" to the head of the Government, Silvio Berlusconi, and revealed Monday, August 8, the daily, details required of the ECB: an economic liberalization and privatization of municipal corporations which, in Italy, manage often public transport, waste collection or distribution of electricity and gas.

New fact, the ECB also calls for reform of the Italian labor market and do not hesitate to detail its requirements. "Less rigidity on permanent contracts, interventions in public employment, change in the model based on the extreme flexibility of the young and insecure and full protection of others, employment contracts boosting productivity," she wrote especially in this letter sent on Thursday or Friday, according to the Corriere, who does not hesitate to call the document a quasi "government program".

Silvio Berlusconi and his finance minister, Giulio Tremonti, announced Friday, the acceleration of austerity measures enacted by Parliament in mid-July to reach a balanced budget by 2013 instead of 2014. Corriere also notes that the French and German leaders, Angela Merkel and Nicolas Sarkozy, has asked Italy to adopt the measures announced "by the end of September." The opposition immediately sought clarification from the government.

"What we really require the ECB and the international institutions? A government powerless, and now totally discredited trust should at least say what the real situation," demanded the leader of the Democratic Party (PD), Pierluigi Bersani. The ECB announced on Sunday it would buy more government debt of countries in the Eurozone in trouble in the secondary market, without designating Italy or Spain.

But according to the French finance minister, Baroin, what are these two countries attacked by the markets that will benefit from the assistance of the ECB.

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