ECB gave Berlusconi orders on how to run Italy

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http://www.independent.co.uk/news/world/europe/ecb-gave-berlusconi-orders-on-how-to-run-italy-2363373.html

The european Central Bank (ECB) told Italy to slash public spending and reform labour laws before intervening to prop up Italian bonds and reduce its borrowing costs, it emerged in a leaked letter suggesting the government kowtowed to EC bankers.

The letter sent to the Prime Minister Silvio Berlusconi on 5 August by the outgoing ECB president Jean-Claude Trichet said the severity of Italy's economic situation made "bold and immediate" action "essential", before going on to demand Italy's budget be balanced by 2013 – a year ahead of schedule – "mainly via expenditure cuts".

The diktat, which was signed jointly with Mr Trichet's designated successor, the Bank of Italy Governor Mario Draghi, also demanded that Mr Berlusconi make radical economic and political reforms, including opening up public services and overhauling pay bargaining and employment rules.

Such changes to the labour laws, subsequently incorporated into this month's emergency budget, were largely responsible for the general strike on 6 September, led by the left-wing CGIL public services union. In particular, new rules making it easier to hire and fire staff infuriated union activists. The section of the ECB letter urging the Berlusconi government to "consider significantly reducing the cost of public employees, by strengthening turnover rules and, if necessary, by reducing wages", might even put some of the more moderate public sector unions on a war footing.





***now i can't stand berlusconi -- but seriously? the ECB should go fuck it's self.