Monti, in an interview with Italian broadcaster RAI, expressed that the country would achieve budgetary balance by 2013. It is projected that the basic surplus as a percentage of the Gross Domestic Product (GDP) will reach 5% in 2013.
As the third largest economy in the Eurozone, Italy faces severe unemployment issues, with a youth unemployment rate as high as 30%, and female employment rates among the lowest in the Organization for Economic Co-operation and Development (OECD) member countries.
Italian Industry Minister Pasqual stated that economic liberalization reforms will be gradually introduced across a wide range of industries. "We will push forward in multiple industries: natural gas, energy, commerce, transportation, and freelance professions are all included. Each step of the reform will create more sustainable economic growth," he said. Currently, Italy's antitrust authority has announced a series of reform plans, including separating the postal bank from government postal operations, privatizing local postal services, and supporting independent operators in the energy sector.
Monti also emphasized that the Italian government is determined to implement the €20 billion budget cut plan approved in December 2011. Specific measures include pension system reform and reducing financial transfers to local governments. He reiterated the commitment to strengthen efforts against tax evasion, which is estimated to cost the Italian government about €120 billion annually in lost revenue. Additionally, the Italian government will increase revenue through property taxes, luxury taxes, and raising the VAT rate.
Furthermore, Monti indicated that the country’s economic liberalization reforms aimed at promoting economic recovery will include a package of measures. "We hope to create more space for competition in multiple industries, including reducing industry protection and differences within and outside industries, and reforming the job market to help young people find jobs more easily."
According to The Wall Street Journal, Italian Prime Minister Mario Monti stated on the 8th that the country does not intend to introduce new fiscal austerity measures, but the previously announced spending cuts and tax increases are sufficient to ensure that Italy achieves its budget balance target. Moreover, the Italian government will adopt a package of economic liberalization measures to promote industry competition, employment, and economic recovery in the country.
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