Mario Monti: The Former EU Commissioner Poised to Revitalize Italy's Economy

Mario Monti, a renowned economist and former EU commissioner, is emerging as a key figure in Italy's bid to tackle its debt crisis and revitalize its economy. As the country teeters on the edge of financial collapse, Monti's reputation as a no-nonsense, economically savvy leader has earned him the support of opposition leaders and international organizations. With his extensive experience in Brussels and a track record of implementing tough economic reforms, Monti is poised to take on the daunting task of leading Italy out of its economic quagmire.

Key Takeaways:

Monti has spent almost a decade in Brussels as EU commissioner, including a stint as competition commissioner, where he blocked General Electric's $47 billion takeover of Honeywell International Inc. and levied a record 497 million-euro fine against Microsoft Corp.
Monti has a good reputation in Brussels, with those who have worked with him describing him as understanding complex issues and having a good reputation for making tough decisions.
As competition commissioner, Monti has shown a willingness to challenge corporate giants and implement reforms that benefit the EU as a whole.
Italy's economy is in dire straits, with growth slowing to 0.5% next year from 1.5% in 2010, and surging borrowing costs making it harder to reduce its 1.9 trillion-euro debt, which amounts to 120% of GDP.
The measures to be approved by parliament before Berlusconi resigns aim to boost an economy whose growth has trailed the euro-region average for a decade.
Monti has been an international adviser at Goldman Sachs for six years, where he would join a club of former Goldman Sachs employees now steering economies around the world.
Monti's mandate as the new government would be limited to the end of the legislature's term in April 2013, and his ability to implement unpopular economic reforms remains to be seen.

Statistics:

Italy's 10-year bond yield breached the 7% threshold on November 9, the level that drove Greece, Portugal, and Ireland to seek bailouts.
Italy's economy may slow to 0.5% growth next year from 1.5% in 2010, according to the EU's forecast.
Italy's debt amounts to 1.9 trillion euros, which is equivalent to 120% of its GDP, making it the second-biggest ratio in the currency region after Greece.
Monti has spent almost a decade in Brussels, including a stint as competition commissioner.
Italy's gross domestic product growth has trailed the euro-region average for a decade.
Italy approved 45.5 billion euros in austerity measures in August to secure ECB support for Italian debt.

Sources:

Bloomberg News