Italy's new govt passes 1st confidence vote

By Frances D'emilio

Associated Press

Published: Thursday, Nov. 17 2011 12:00 a.m. MST

Students clash with police during a demonstration in Milan, Italy, Thursday, Nov. 17, 2011. University students are protesting in Milan and Rome against budget cuts and a lack of jobs, hours before new Italian Premier Mario Monti reveals his anti-crisis strategy in Parliament. Across Italy, transport unions called all-day walkouts or strikes of several hours Thursday to demand better work contracts. Scuffles among students were reported at the start of the demonstration in Milan, where they hoped to march to Bocconi University, which trains Italy's business elite. Monti, an economist, is Bocconi's president and is scheduled to speak in the afternoon ahead of a confidence vote on the government he formed on Wednesday.

Luca Bruno, Associated Press

ROME — Against the backdrop of anti-austerity protesters clashing with riot police, Italy's new premier appealed to Italians to accept sacrifices to save their country from bankruptcy, but pledged economic growth and greater social cohesion in return.

Mario Monti is under enormous pressure to boost growth and bring down Italy's high debt, not only to save Italy from succumbing to the debt crisis but to prevent a catastrophic disintegration of the common euro currency.

"Europe is experiencing the most difficult days since the end of the Second World War," Monti told parliament in his debut address Thursday. "Let's not fool ourselves, honored senators, that the European project can survive if the monetary union fails."

Monti pledged to reform the pension system, re-impose a tax on first homes annulled by Silvio Berlusconi's government, fight tax evasion, streamline civil court proceedings, get more women and youth into the work force, and — in a move aimed at setting an example for ordinary Italians — cutting political costs.

The government will decide "in the coming weeks" what new austerity measures are needed, Monti said.

The 68-year-old economist and university president described three pillars of his strategy: Budgetary rigor, economic growth and social fairness.

"This government recognizes that it was born to confront a serious emergency in a constructive and united spirit," Monti said, calling it "a government of national commitment."

He was interrupted 17 times by applause. But outside, Rome's historic center was paralyzed by student protests and in the financial capital of Milan, riot police struggled to stop protesters trying to reach the Bocconi University over which he presides, signaling the depth of the resistance the new leader will have to confront.

Monti's one-day-old government won a vote of confidence 281-25 in the Senate later Thursday, ahead of a vote in the lower house Friday, on his government of experts, including fellow professors, bankers and business executives. He was chosen to lead after Italy's spiraling financial crisis brought down media mogul Berlusconi's 3 1/2 year-old government.

Europe has already bailed out three small countries — Greece, Ireland and Portugal — but the Italian economy, the third-largest in the 17-nation eurozone, is too big for Europe to rescue. Borrowing costs on 10-year Italian bonds spiked briefly over 7 percent Thursday — a level that forced those other countries into bailouts — before closing at 6.81 percent.

In a conference call Thursday, German Chancellor Angela Merkel, French President Nicolas Sarkozy and Monti agreed that their countries have a special responsibility to the eurozone as its three largest economies and founding members of the European Union.

Still, it's not clear how many sacrifices already-stressed Italians are willing or able to make.

Students demonstrated across Italy under the banner: "Save the schools, not the banks."

In Milan, a large protest was broken up before it could reach Bocconi, which has educated generations of elite business leaders. Protesters also tried to enter the Italian banker's association office. "The government of the banks," read one placard held by a youth.

Demonstrators in Palermo, the capital of Sicily, hurled eggs and smoke bombs at a bank, and protesters threw rocks at police, who battled back with pepper spray, the Italian news agency ANSA reported. One protester was injured in Palermo, where police charged demonstrators who were trying to occupy another bank.

And riot police in Turin reported several police injuries as they held back protesters trying to break through barriers.

In Rome, hundreds of students gathered outside Sapienza University, while others marched from the train station toward the Senate.

Protester Titti Mazzacane was skeptical about the new government.

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