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Italy faces tough austerity as debt repayments loom

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Italy faces tough austerity as debt repayments loom
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Rescuing Italy’s economy is of the utmost importance for eurozone members and tough austerity measures have been been demanded of Italy’s new government.

A payment of 200 million euros on the country’s debt is due next April, and not making it is out of the question.

Liberal MP Paolo Guzzanti thinks people will realise the cuts are harsh whoever is in charge of delivering them: He said. “In order not to avoid a default, without tapping into our nationally owned wealth, such as state companies, this government will have to carry out unpopular measures and they’ll be unpopular despite Monti’s grey suit, friendly face and nice haircut.”

Someone taking a different form of showing his anger at the way politics is handled in Italy is Gaetano Ferrieri. Protesting at the financial cost of government, he’s been on hunger strike for 164 days.

“I’m asking for cuts to the political system of 80 billion euros. This includes cuts to consulting at a national level, cuts to managers’ and politicians’ wages of 3,000 euros, and cuts to provinces. The second measure concerns tax evasion – 300 billion euros that have been taken abroad by big companies,” said Ferrieri.

Italy’s new prime minister Mario Monti is hurriedly putting together a team including technocrats to form an emergency government as he searches for a solution outside of traditional politics.