Italy seeks to boost growth in action plan ‘phase two’

Italy has reportedly managed to sell more than 7 billion euros worth of long-term bonds, as the country tries to refinance its debt. The total on sale was worth 8.5 billion.

It follows success for Prime Minister Mario Monti on Wednesday when the cost of borrowing fell by half as the government managed to sell 9 billion euros of short-term debt at auction.

That move, along with further austerity measures and an injection of cheap money from the European Central Bank, reassured the markets, at least temporarily.

An emergency cabinet meeting was held on Wednesday as the government launched ‘phase two’ of its action plan designed to boost growth. Measures announced so far have brought protests from Italian unions.

Some analysts agreed the package could further harm the country’s weak internal demand, making efforts to revive growth even more crucial.

The prime minister has promised to tackle Italy’s chronic low-growth problem, something his predecessor Silvio Berlusconi is said to have seriously neglected.

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