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Labor reform, Monti: "It is a historic turning point for growth"

The prime minister speaks of the labor reform as a historic turning point for growth - Surely of the reforms launched so far by his government it has been the most painful and only the intervention of the three major parties at the summit on Tuesday evening made it possible to unblock a provision which previously had prompted the no from the CGIL and now worries banks and businesses

Labor reform, Monti: "It is a historic turning point for growth"

Of the reforms launched so far by the Monti government, the one on the labor market has certainly been the most tormented. Without the modification on layoffs with the possibility of reinstatement of the worker in case of non-existence of economic reasons, the reform would probably never have taken off both due to the very tough opposition of the CGIL and to the malaise of the Pd. He unlocked the entire Monti summit on Tuesday evening with Alfano, Bersani and Casini. Two changes: one on entry flexibility and one – the central one – on article 18 and on the possible reinstatement. "Now - said Monti - I expect a calm parliamentary process because this is a historic reform for growth". Banks and businesses don't think so, worried about the burdens and costs of the reform.

Beyond the merits and contents of the reform, which goes far beyond the art. 18 and which provides for major innovations on apprenticeship, on entry flexibility and on the strengthening of social safety nets, the fact remains that the Monti government's reform agenda is record-breaking: first the pension reform, the most important of those launched so far which deserves top marks because it has secured public finances by restoring international credibility to Italy, and then - even if less incisive - liberalizations and simplifications. Now the labor reform, more controversial, and immediately after the most eagerly awaited appointment: the tax reform which, hopefully, will have to lighten taxes on companies and on labor to support investments and consumption. But to arrive at that reform it is necessary to collect resources from the spending review and the fight against tax evasion. The battle, as the spread emergency reminds us, is not over.

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