Italy resorted to different measures to help itself in improving its economic condition. These measures include several controversial reforms that were approved by the government. With these reforms, government in stepping towards building competition among service providers. However, this move is not acceptable to all as it can ruin small businesses.
The government released 5.5 billion Euros for infrastructural development. This includes construction of railway lines, new buildings for schools and public housings. Before this, government released 4.8 billion Euros in December last year for infrastructural development such as laying of high-speed railway lines and roads.
Mario Monti, Prime Minister of Italy, said that the government has approved a bill for infrastructural developments and released funds for the same. This bill allows more licenses for taxis, elimination of time restrictions for pharmacies, permission to petrol stations to buy petrol from any company. This bill also says that doctors, lawyers and dentists will also come under government supervision.
Prime Minister said that this bill was adopted to build up competition. Such competition would welcome more young people, while terminating rent-section and privileges. However, this move was not agreed to by the taxi drivers and other people like union leaders.
S&P had cut Italy’s credit ratings by two notches and brought it down to BBB+. Fitch Ratings has also warned Italy to improve economic condition to avoid down grading of credit ratings. Bank of Italy predicted that the country’s economy will decrease by 1.5% in the current year. Where as it is expected to be around 2.2% in the IMF report which is due for publishing within few days