Italy: Cabinet imposes 32 billion more in cuts

 The cabinet of new Italian prime minister Mario Monti has approved new tax hikes and pension reforms that add up to 32 billion. The measures are designed to restore investor confidence in Italy. Italy's cost of borrowing has skyrocketed of late.
   The cabinet was originally scheduled to meet on Monday but it was moved up to Sunday so that the passage of the measures might have positive effects on markets. The measures still remain to be approved by parliament. Of course the Italian people will have no say on the matter.
   The Northern League the one major party to oppose the new government wants to hold a referendum on pension reform. Interesting that reform now means cutting benefits so that pensioners receive less and must wait longer to receive them.
    Sussana Camusso who heads Italy's biggest union lambasted the new austerity measures claiming that they are  "making money on the backs of poor people in our country". "There is no equity" in the changes.
   Both the IMF and the EU are watching Italy closely and have a team of auditors who are to police implementation of the long promised reforms. No doubt there will be more opposition in the street as the measures come before parliament. For more see this article.