EU Commissioner Mario Monti Faces Pressure to Become Italy's Economy Minister

Italian Prime Minister Silvio Berlusconi was left looking weak and isolated after the ousting of economy minister Giulio Tremonti in a coalition coup. EU Commissioner Mario Monti is under pressure to become Italy's next economy minister, which would give the centre-right coalition some much-needed credibility. Monti's appointment would be seen as a boost to the coalition's image, especially given the intense European Union scrutiny of Italy's state accounts. However, Monti is yet to confirm whether he will accept the role.

Key Takeaways:

• EU Commissioner Mario Monti is under pressure to become Italy's next economy minister after the ousting of Giulio Tremonti.
• The appointment of Monti would be seen as a boost to the centre-right coalition's image, which has been weakened by recent electoral defeats.
• Prime Minister Silvio Berlusconi has assumed the role of economy minister on an interim basis, but faces a daunting task in addressing Italy's economic stagnation.
• The Italian economy barely grew in 2002 and 2003, and voters have expressed discontent over the prolonged period of economic stagnation.
• The government's poor handling of the economy has led to clashes between Italian coalition parties, with some accusing the outgoing economy minister of failing to confer on policy-making.
• Italian state accounts face intense European Union scrutiny, and the country risks breaking EU rules if its 2004 budget deficit is not brought under control.

Statistics:

• Italy's economy barely grew in 2002 and 2003, with a meagre 0.1% growth rate in 2002.
• The Italian government's 2004 budget deficit risks breaking EU rules, with a possible early warning from the European Union.
• Up to €7 billion of deficit-cutting measures are promised by the Italian government in a bid to stave off a politically embarrassing slap on the wrist from the EU.

Sources:

• La Repubblica newspaper
• La Padania newspaper