Italy's Monti faces vote of confidence on economy

Italy's Prime Minister Mario Monti gestures during a press conference at the Chigi Palace in Rome 15 December 2011.
IMG credit: Reuters/Tony Gentile
By Gavin Jones

Rome (Reuters) - the Italian Government faces a confidence vote in Parliament to accelerate on Friday, a move after approval of a 33 - billion euros ($ 43 billion) austerity package the confidence of the markets in the euro zone's third-largest economy recover.

Government of the non-elected technocrats Mario Monti has an overwhelming majority in both houses of Parliament and the vote in the Chamber of Deputies take place in the afternoon should simply pass.
Plan of economy then moves in the Senate, where a similar vote is expected before Christmas, marking the last passage as law decree, which went into force on 4 December but required parliamentary approval be held 60 days.

Monti's Government was last month before a collapse in confidence of the markets, which Italy in the Centre of the euro-zone debt crisis. He has passed through the package of tax increases, spending cuts and pension reform aims to balance its budget by 2013 Italy's goal.

However, analysts say, increasing costs for the taking-up and the prospect of a rapidly deepening of recession still threaten to undermine Italy's fiscal consolidation efforts.

The Government handle to confidence vote debate on dozens of amending the law to curb, many League presented by them party of the opposition.

Monti's predecessor, Silvio Berlusconi, had called a vote of confidence, saying that his PDL party-the largest in the Parlament-the Government of a sense of responsibility, would not support because it with all the victims of the Italians asked agrees to.

RECESSION

Both Berlusconi PDL and the centre left party are concerned about parts of the law, but can not sabotage the Government for fear of unleashing economic disaster, which would probably lead to Italy its debt in arrears.
Underlines the depth of the crisis, cut the main employers lobby Confindustria on Thursday the growth forecast for Italy next year minus 1.6 percent from a previous estimate of 0.2 percent and said that the country was already in recession.

It said even this forecast was based on Italian bond yields dropped to less than 5% of April compared with 7 percent jetzt-- the level at which Ireland, Greece and Portugal were forced, rescue operations take.
Such a bailout for the much larger Italian economy would likely overwhelm Europe's defense, which is why the country is in the front of the euro zone crisis.

Lega Nord in the word fallen Monti in Parliament this week and held up posters: "This is not a budget, but a bank robbery." You also sought to interfere with the convening of the endorsement of foot-dragging in the Chamber before speaker Gianfranco Fini cut short.