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Q&A: Former Prime Minister Mario Monti on Italy's Prospects for Economic Growth

Wall Street Journal Original article ›

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Mario Monti says he had to do things quickly after his financial emergency government took office in 2011. There was less consultation and most of the initial reforms were done under pressure from the EU and a crisis situation in financial markets. Change takes some time to accomplish, says Monti, his period in offfice was too brief to tackle the entrenched interests and bureucracy. He and many of the cabinet had never been part of any government, yet had to act quickly. The oath of office on Nov. 16, "Save Italy" decree on Dec. 4. His government simply told the unions this is the pernsion reform, did not consult with them. As the crisis receded the pressure receded, and with 2013 elections approaching the political parties were back to electoral politics. Monti's view is that for decades the interest and corporatist groups have taken over government. Under the right, the inital mood of change gave way to takeover by entrenched interests leading to no changes under Berlusconi. The left feared pension reform would hurt them politically. If he had five years, Monti says, he would have tackled the bureaucracy the first day. In the end, Monti views his coming to Rome as landing from Mars, someone from the outside tackling deepseated problems in a short time frame. An assessment of Monti's contribution should take this into account. He was unpopular for the austerity measures which may have deepened the recession. Yet his contribution was in bringing a new seriousness to Italy's problems after decades of neglect by both the right and the left in Italian politics and government, and by corporatist interests in government. The beginning made by Monti, now gives Matteo Renzi a chance to make the tougher changes needed for Italy to return to growth.

Walker and Ball's interview with Mario Monti in April 2014, with reflections on the financial emergency government led by Monti in Italy 2011-2012

04/30/2014

Monti says most of the changes made by the financial emergency government were done under pressure of events in financial markets with alarming increase in yields for Italian government debt. As the financial emergency receded there was less pressure for structural reforms. Austerity measures were pushed hard by Brussels for fiscal improvement, there was less pressure for structural reforms and more pushback from entrenched interests.

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Q&A: Former Prime Minister Mario Monti on Italy's Prospects for Economic Growth

Wall Street Journal 04/30/2014


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