Athens, meet Rome

[marmar]

from the WSJ:



ROME—Italian Prime Minister Silvio Berlusconi pledged to loosen up the country's labor market and said Italy would balance its country's budget by 2013, a year earlier than planned, in an effort to to quell weeks of market concerns that the euro-zone's third-largest economy will be drawn into the continent's escalating debt crisis.

Speaking in a hastily called news conference Friday evening in Rome, Mr. Berlusconi said the country would introduce a balanced-budget amendment in its constitution as part of an agreement with European Union authorities. He also said the country would take the necessary moves to push ahead with a major liberalization program aimed at injecting growth into the country's anemic economy.

International market pressure on Italy's public finances require coordinated response by many states, Mr. Berlusconi said. He said he had spoken with other European leaders, including German Chancellor Angela Merkel. Ms. Merkel discussed financial markets and the euro zone with other EU leaders Friday, a German official said, and was scheduled to have a talk with U.S. President Barack Obama.

Market "speculation is now aimed at us," and Italy and fellow euro-zone nations must take action to block it, Mr. Berlusconi said during the news conference, which he held jointly with Economy Minister Giulio Tremonti. ...........(more)

The complete piece is at: http://online.wsj.com/article/SB10001424053111903366504576489793090784296.html?mod=MKTW