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Italy: PM Monti unveils crisis plan as students protest Italy: PM Monti unveils crisis plan as students protest
(40 minutes later)
Italy's new PM Mario Monti has outlined plans to tackle the country's economic problems and cut its debt, amid student protests in several cities.Italy's new PM Mario Monti has outlined plans to tackle the country's economic problems and cut its debt, amid student protests in several cities.
The former EU commissioner said austerity measures would be balanced by economic growth and social fairness.The former EU commissioner said austerity measures would be balanced by economic growth and social fairness.
"The future of the euro also depends on what Italy will do in the next few weeks," he told senators in Rome."The future of the euro also depends on what Italy will do in the next few weeks," he told senators in Rome.
Meanwhile, police in Milan clashed with protesters heading for a university chaired by Mr Monti.Meanwhile, police in Milan clashed with protesters heading for a university chaired by Mr Monti.
Mr Monti formed his cabinet, made up of business leaders and other experts, after the centre-right government of Silvio Berlusconi fell last week under market pressure.Mr Monti formed his cabinet, made up of business leaders and other experts, after the centre-right government of Silvio Berlusconi fell last week under market pressure.
The Senate will hold a confidence vote on the new government on Thursday evening.The Senate will hold a confidence vote on the new government on Thursday evening.
On Thursday, French and Spanish borrowing costs shot up as the difference in interest rates between their bonds and those of Germany hit a record.On Thursday, French and Spanish borrowing costs shot up as the difference in interest rates between their bonds and those of Germany hit a record.
'We are Europe''We are Europe'
Mr Monti told senators he intended to overhaul the pension system which he said "has large disparities in treatment and unjustified privileges for certain sectors".Mr Monti told senators he intended to overhaul the pension system which he said "has large disparities in treatment and unjustified privileges for certain sectors".
He also said there would be a crackdown on tax evasion and changes to the taxation system.He also said there would be a crackdown on tax evasion and changes to the taxation system.
Mr Monti said the absence of a property tax on main households - abolished under Mr Berlusconi - was an Italian "anomaly".
He added that his government would introduce incentives for companies to employ more women and young people.
"If we fail, if we don't carry out the necessary reforms, we will also be subjected to much harsher conditions," Mr Monti said."If we fail, if we don't carry out the necessary reforms, we will also be subjected to much harsher conditions," Mr Monti said.
The "absence of growth" had "cancelled out sacrifices" by Italians, he argued, promising to respect Italy's timetable to balance its budget by 2013 and reduce its debt.The "absence of growth" had "cancelled out sacrifices" by Italians, he argued, promising to respect Italy's timetable to balance its budget by 2013 and reduce its debt.
"We don't see the European obligations as imposed by external forces," he said."We don't see the European obligations as imposed by external forces," he said.
"It's not a case of them on one side and us on the other. We are Europe.""It's not a case of them on one side and us on the other. We are Europe."
As Mr Monti appeared in the Senate, student demonstrations were reported in Rome and other Italian citiesAs Mr Monti appeared in the Senate, student demonstrations were reported in Rome and other Italian cities
  • Riot police intervened in Milan after hundreds of students protesting against the "bankers' government" tried to reach Bocconi University, which is headed by Mr Monti, an economist
  • In Palermo, Sicily, demonstrators reportedly hurled eggs and smoke bombs at a bank, and others threw stones at police
  • In Rome, hundreds of students gathered outside Sapienza University, while others assembled near the main train station, apparently with the aim of marching on the Senate
  • Riot police intervened in Milan after hundreds of students protesting against the "bankers' government" tried to reach Bocconi University, which is headed by Mr Monti, an economist
  • In Palermo, Sicily, demonstrators reportedly hurled eggs and smoke bombs at a bank, and others threw stones at police
  • In Rome, hundreds of students gathered outside Sapienza University, while others assembled near the main train station, apparently with the aim of marching on the Senate
Corrado Passera, CEO of the Intesa Sanpaolo banking group, was named to head the new ministry of development, infrastructure and transport.Corrado Passera, CEO of the Intesa Sanpaolo banking group, was named to head the new ministry of development, infrastructure and transport.
Another key appointment was that of Antonio Catricala, head of the anti-trust authority, who was made under-secretary to the prime minister's office.Another key appointment was that of Antonio Catricala, head of the anti-trust authority, who was made under-secretary to the prime minister's office.
Despite reports that Mr Monti had sought to include politicians in his cabinet, there are none.Despite reports that Mr Monti had sought to include politicians in his cabinet, there are none.
"The absence of political personalities in the government will help rather than hinder a solid base of support for the government in parliament and in the political parties because it will remove one ground for disagreement," he said."The absence of political personalities in the government will help rather than hinder a solid base of support for the government in parliament and in the political parties because it will remove one ground for disagreement," he said.
Correspondents say it looks almost certain that Mr Monti will receive the backing of senators during the confidence vote in the Senate, and a subsequent vote in the lower house on Friday.Correspondents say it looks almost certain that Mr Monti will receive the backing of senators during the confidence vote in the Senate, and a subsequent vote in the lower house on Friday.
Only one party, the right-wing Northern League, says it will withhold its support though former Prime Minister Silvio Berlusconi has reportedly said he could "pull the plug" on the government if he does not like what it does.Only one party, the right-wing Northern League, says it will withhold its support though former Prime Minister Silvio Berlusconi has reportedly said he could "pull the plug" on the government if he does not like what it does.