EU’s Andor Says Italy’s Budget Constraints to Curb Public Jobs

European Union Employment Commissioner Laszlo Andor said that Italy’s budget constraints may lead to a reduction in the number of civil servants.

“We are all aware of the budget constraints for Italy and Italy needs to focus on public consolidation,” Andor told reporters in Rome at a press conference with Italy’s Labor Minister Elsa Fornero. Italy’s shrinking budget “consequences for employment in the public sector.”

After the economic crisis eases, “there won’t be the same number of jobs in the public sector and the same number of jobs in the private sector,” the commissioner also said. Andor expressed his “strong support” for Italy’s overhaul of the labor market, saying it’s important that the “reform is passed soon by parliament without lowering its ambition.”

He said that the new firing rules included in the overhaul may initially lead to more dismissals.

“In some situations, easing firing rules may worsen the employment situation,” he said.

To contact the reporter on this story: Lorenzo Totaro in Rome at ltotaro@bloomberg.net

To contact the editor responsible for this story: Tim Quinson at tquinson@bloomberg.net

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