Monti Is Sworn in as Italian Premier

   
     Economist and Former European Commissioner Mario Monti was sworn in as Prime Minister of Italy today, officially ending the premiership of Silvio Berlusconi. The respected Monti takes the helm of the Italian ship of state as it navigates through the tempest of the European debt crisis, at which Italy is now in the eye. 

     Monti saluted Berlusconi’s service, according to ANSA, the Italian news agency. Berlusconi resigned after the passage of reforms he proposed to stimulate economic growth because of the European loss of confidence in his center-right government’s ability to implement them. The outgoing Prime Minister’s party, the People of Freedom, backs Monti, but its coalition partner, the Northern League, does not, although ANSA reports that Monti has stated that he will continue the League’s policy of fiscal federalism. The main centre-left opposition party and some most centrist parties also back the national unity government that comprises only technocrats, not politicians. 

     Monti was appointed a life Senator by President Georgio Napolitano in order to pave the way to his appointment as Prime Minister, as it would have been seen as less representative to appoint a non-politician as Premier without calling for snap elections. The new Prime Minister’s executive is unusual in that none of its cabinet ministers are Members of Parliament. It remains unclear when elections will be held, but Monti’s new government will face a confidence vote in Parliament Friday, which he is expected to win easily.

     ANSA reports that Monti outlined his agenda before Parliament today for reducing Italian debt and boosting economic growth. He will reexamine Italy’s taxes and spending, particularly the escalating costs of government, which he attributed to high benefit pensions for government employees and redundant provincial administrations, ANSA reported; he proposes tax reform and disincentivizing early retirement, for example. Monti plans to sell state real state assets and urged local governments to privatize public services and sell off interests in municipal companies, according to ANSA. The Italian news agency also reports that Monti would deregulate professional services and crack down even more heavily on tax evasion. 

     Monti’s appointment has won international praise. The expectations are high that he will achieve positive results, despite the difficult challenges.