Italians reluctant to make personal sacrifices in battle with debt

An opinion poll taken at the end of last week showed that 93 per cent consider public debt a priority, but only about a quarter favour reforming employment laws to make it easier to fire workers or approve of raising the retirement age to 67. Those reforms are considered critical to curbing Italy’s public spending and boosting its economic growth.

The poll shows that most Italians retain a favourable view of the European Union and 76 per cent think Italy should stay in the 17-nation eurozone.

The poll was taken during the first days of economist Mario Monti’s new government, brought in to tame Italy’s £1.6 trillion debt. Market turmoil and loss of confidence in Italy’s ability to repay its debts forced premier Silvio Berlusconi to resign, ending his 17-year domination of Italian politics.

Italy’s economy is hampered by high wage costs, low productivity, fat government salaries, excessive taxes, choking bureaucracy, and an educational system that produces one of the lowest levels of college graduates among rich countries.

Yet as the third-largest economy in the eurozone, Italy is considered too big for Europe to bail out like it did Greece, Portugal and Ireland.

Mr Monti got high marks from Italians surveyed after he was tapped to lead the country, garnering a 67 per cent favourability rating. Only 10 per cent had a negative view and 16 per cent were neutral.

He has pledged to reform the pension system, re-impose a tax on homes scrapped by Mr Berlusconi, fight tax evasion, streamline civil court proceedings, get more women and youths into the work force and cut political costs. But critically, only 32 per cent of Italians are strongly confident that his government of bankers, academics and corporate executives can fix the country’s economic ills. Some 42 per cent say they’re “moderately confident” and 22 per cent say they have little or no confidence he can turn Italy’s finances around.

Only 35 per cent of Italians think children born today will be better off 20 years from now, while 43 per cent anticipate a harder life for the next generation.

Mr Berlusconi is reviving his musical career, just a week out of office. The billionaire media mogul has released a new CD with musical collaborator Mariano Apicella.

Mr Berlusconi – a one-time cruise ship crooner – does not sing on the new collection, entitled True Love, but co-wrote all 11 songs.

The album features love songs and jazz arrangements.