The law, which the Senate canada goose clearance will vote on

Italy’s Monti faces key final vote on austerity

ROME (Reuters) Italian Prime Minister Mario Monti faces a confidence vote on Thursday that he called to speed up final approval of a 33 billion euro ($43 billion) austerity package aimed at restoring market confidence in the euro zone third biggest economy.

Italy’s canada goose coats on sale Prime Minister uk canada goose Mario Monti looks on before a meeting with uk canada goose outlet Libya’s National Transitional Council (NTC) Chairman Mustafa canada goose uk outlet Abdel Jalil at Chigi Palace in Rome December 15, 2011. REUTERS/Tony Gentile

Just canada goose store five weeks ago Monti replaced Silvio Berlusconi as prime minister and formed an administration of technocrats with broad parliamentary support to pass the so called Italy measures. The law, which the Senate canada goose clearance will vote on in the early afternoon, should pass Canada Goose sale easily.

Berlusconi failure to tackle major reforms put Italy canada goose clearance sale at the centre of the euro zone debt crisis. Monti managed to put together a painful series of tax hikes, spending cuts and a pension overhaul.

The government passed the package in the lower house with a confidence vote last week to eliminate debate on dozens of amendments. A confidence canada goose uk shop vote was called in canada goose uk black friday the Senate to ensure the law passage before Christmas.

The confidence votes also allow the parties supporting Monti government to say that they are backing the law out of a sense of responsibility, even if they don agree with many of cheap Canada Goose the measures.

Both Berlusconi People of Liberty Party (PDL) and the centre left Democratic Party have misgivings about the tax increases and the pension changes respectively, but know they cannot sabotage its passage without unleashing an economic catastrophe and a possible default.

Monti has argued that restoring confidence Canada Goose Outlet in Italy is paramount to saving the euro zone, but the severity of the package has taken a toll on his popularity, which fell to 46 percent from 61 percent the previous week, according to a poll published in Corriere della Sera on Sunday.

BLEAK OUTLOOK canada goose factory sale The austerity package will also hurt economic growth at a time when the economic outlook is already bleak, economists say.

Monti has said he was confident that markets will eventually react positively to Italy efforts, arguing that lower interest rates would help Canada Goose Coats On Sale offset the effects of the austerity measures on growth.

While bond yields have come down, with the 10 year steadily below 7 percent, Canada Goose Jackets the austerity package has failed to canada goose coats bring them back to more sustainable levels of about 5 percent.

Last week, ratings agency Fitch placed Italy and five other euro zone countries on a downgrade warning in the absence of a solution to the debt crisis.

Though his government Canada Goose online looks set to pass the first test, even bigger challenges are on the horizon.

Monti has pledged a comprehensive series of liberalizations, especially of the nation services sector, which are protected by entrenched special interests.

He has buy canada goose jacket said his government cheap canada goose uk may ease firing canada goose black friday sale restrictions on salaried workers, which has set the stage for a clash with powerful buy canada goose jacket cheap unions .

Italy economy has expanded an average of 0.4 percent per year Canada Goose Online for the past decade, and so tackling Italy growth problem is a necessity.

It shrank 0.2 percent in the third quarter, compared with 0.5 percent growth in Germany and 0.4 percent in France, and economists don predict a recovery until the second half of next year.

The main employers lobby, Confindustria, forecasts a 1.6 percent decline in gross domestic product in 2012, four times worse than the government forecast for a 0.4 percent fall canada goose Black Friday Sale .

After the passage of Italian austerity, the euro zone will have canadian goose jacket to step up its efforts to boost growth and put an end to the region sovereign debt crisis, Monti has repeatedly said.

The package went into effect on Dec 4, when it was passed by the Cabinet, but needed parliamentary approval within 60 days to Canada Goose Parka become permanent legislation canada goose.