Monti Economic Reforms Won’t Be Undone by a New Government, Grilli Says
Prime Minister Mario Monti’s overhaul of the Italian economy won’t be undone should a new government take over after elections next year, Deputy Finance Minister Vittorio Grilli said.
“It’s not that the things we are doing are new things or unexpected things,” he said in an interview in Rome today with Bloomberg Television. “I think the political parties knew that these were necessary things, but there was not sufficient biparitsan cooperation, so this is the change. This government has had a wide bipartisan support to put in place things that everyone knows were necessary and I don’t think whoever comes into power will have any incentive” to undo them.
Once the government passes changes to labor-market rules expected later this month, the administration will turn attention to implementing the changes already adopted, including measures to reduce bureaucracy, fight tax evasion and open up closed professions to spur competition and growth, he said.
Grilli said that the government hasn’t abandoned its strategy of trying to lengthen the maturity of its outstanding debt, the second-biggest in Europe, by selling bonds with maturities of more than 10 years.
“Here we want to be tactical,” he said. “Our strategy has always been to lengthen our average maturity and duration but given the fragility of the markets, we don’t want to go against the wind.”