Reduce the stock of public debt? Prime Minister Mario Monti "doesn't rule out anything". Not even the possibility of creating a 300 billion real estate fund or other measures to intervene drastically. In any case – specified the Prime Minister during the press conference at the end of the year – “it is very important that any operations, consistent with market logics, logically and temporally follow the serious and hard work on flows that we have done. We reflect on everything, as our duty, and interesting hypotheses of operations on the debt stock are formulated by observers, the press, market analysts".
EUROPE: MORE RESOURCES NEEDED FOR THE STATE-SAVING FUND
As for Europe, "budgetary discipline is essential, and any mechanism to make its application secure and credible is fine with us, provided it is integrated into an overall European economic policy that has more resources to get the euro area out of from difficulty and promote growth with closer integration of markets”. In this direction, above all, "greater means for the State-saving Fund" are needed.
STARTING FROM JANUARY "PHASE 2"
Liberalization and work. These are the pillars on which the so-called "phase 2" of the government will rest, the one that should rekindle the engine of development. “Times will once again be quite fast – said the premier -. We know that Europe awaits us at the Eurogroup on 23 January and subsequently at the European Council on 30 January. In view of these deadlines, we are working on various fronts”.
First, “an intense and well-distributed effort on competition and liberalization, systematically, so that everyone realizes that some sacrifice is required of everyone”. Another fundamental node will then be “the delicate and important building site of the work and social safety nets – explained the Prime Minister again -. It is also pointed out to us by the international authorities that there are excessive segmentations in our labor market".
On the other hand, “compared to the issue of pensions, this matter requires more negotiation with the social partners. However, everything will have to be carried out with a certain speed. The reform of social safety nets is necessary, but greater flexibility is also needed". As regards the other intervention chapters, just a hint: "many other initiatives are also on the way - concluded Monti - on the themes of economic development, infrastructure, research, human capital and territorial cohesion".
NO ANOTHER MANEUVER NEEDED
“No one thinks that another maneuver is necessary, nor that the transition to the development phase means sudden financial breadth – declared the prime minister -. The growth policy that we will propose to the country does not make much use of public money, also because there is little of it, but aims to use equity as a lever”.
“We need to limit the privileges and annuities that hold back economic mechanisms to the detriment of young people – added Monti -. I fully realize that the maneuver we had to make has many drawbacks. The fact that Italy has undertaken to achieve a balanced budget in 2013 and to reduce the debt/GDP ratio by 5% is seen critically. But it is not this government that has signed up to these commitments: I'm not taking a position, I'm just saying that we have found ourselves in charge of operating with an attempt to restore dignity, stability and authority to a country that had already accepted those objectives".
THE SPREAD? DON'T MINIMIZE IT, NOR DEMONISE IT
“I too look at the trend of the spread several times a day, without minimizing it when it goes down or demonizing it when it goes up. The ascent was unstoppable until November 9, when it reached a maximum of 558. I remember that date because I was in Berlin and received the phone call from the head of state announcing the nomination. Since that day the trend has been decreasing”.
According to Monti, the climb took place “despite the fact that in a good part of that period the ECB bought Italian and Spanish government bonds. Purchases have become very rare in recent times. Previously we climbed a lot despite the purchases. Now this decreasing trend occurs despite the fact that purchases have almost ceased". Monti therefore invites "not to overestimate the spread, neither when it's going well, nor when it's going badly. Yesterday and today treasury bond auctions went quite well, this is encouraging, but it does not mean that the work to be done is finished”.
PENSION ASSURANCE
“Minister Fornero, in agreement with the Economy and Finance, wants me to say, with regard to social security, that the Government, in relation to the effects determined by the reform, has adopted measures aimed at safeguarding the situation of those who, following the modification of the requirements for access to pension treatments, he would have found himself without work, without pay and without a pension, for example workers in mobility". The prime minister also guaranteed that the Government is evaluating the case of other subjects "who could find themselves in a similar difficult situation".
