Italy's Monti says government will now turn to growth

Reuters News
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Posted: Dec 22, 2011 7:03 AM

ROME (Reuters) - Italy's government will now turn to the enormous task of stimulating growth after passing a tough austerity budget, Prime Minister Mario Monti said on Thursday.

Addressing the upper house of parliament before a confidence vote to seal the 33-billion-euro budget, Monti said his technocrat government had been forced to rush through the package of spending cuts and tax hikes to restore international market confidence in Italy.

Now it would turn to reversing Italy's decade of stagnant growth, Monti said. He added that labor market reform, which has already caused tensions with trade unions, would require detailed dialogue with both workers and employers before it can be completed.

(Reporting by Barry Moody)