I think it is starting to sink in, that socialism does not work and has led to what we are seeing the world over. Economies in distress because of a few countries who have for generations lived off the government. This needs to be corrected by all, especially in the U.S. where things are looking really bad. Here in Canada, we must find a way for Quebec and the Maritimes to stand on their own. Live within their means, balance budgets and stop looking for handouts from Ottawa and the rest of the country. It should be law that every government in our dominion has to put forward a balanced budget, no matter what the economy is doing. Just like families, when things are tough you tighten the purse strings, we should expect no less from our governments!
Italy speeds up austerity to calm financial nerves
ROME — Italy will speed up a package of austerity measures approved last month to achieve budget balance by 2013, Prime Minister Silvio Berlusconi said Friday in a fightback against a wave of financial market panic.
"We believe it is opportune to accelerate the measures... to reach a budget balance early -- in 2013 instead of 2014," Berlusconi said at a news conference.
"We are responding to the demands of markets that are governed by no-one, not even speculators, and operate independently from economic reality," he said.
"We have to recognise that the world has entered a global financial crisis that concerns all countries," he added.
Italy's main centre-left opposition Democratic Party warned that the speeding up of austerity cuts was "irresponsible." Berlusconi's critics say the measures hit Italy's poorest hardest by reducing social welfare payments.
Berlusconi said lawmakers would be called back early from summer recess to start working "immediately" on measures including a constitutional amendment that would force Italian governments to keep balanced budgets.
The amendment -- similar to one in force in Germany -- was announced by Berlusconi after emergency talks with trade unions and big business on Thursday.
"International speculators are paying particular attention to us and we have to put a stop to it," he said on Friday.
Economy Minister Giulio Tremonti meanwhile said the government would also present some major labour market reforms to trade unions and big business.
"The labour market is fundamental for development and investments," he said, adding that there would be a crackdown on a variety of tax exemptions.
Italy has been badly hit on the stock and bond markets in recent weeks by investors concerned about its high public debt, anaemic economic growth, as well as signs of tensions within Berlusconi's centre-right coalition.
Italian shares plunged 13.12 percent this past week, although market rumours that the European Central Bank was intervening to support the highly vulnerable markets for Italian and Spanish bonds helped stem the slide on Friday.
Italy's parliament last month adopted a four-year 48-billion-euro ($68-billion) austerity budget aimed at cutting the public deficit from 4.6 percent of output last year to just 0.2 percent by 2014.
The plan, which included deep cuts to regional subsidies, family tax benefits and top-tier pensions, was heavily criticised by many commentators for delaying by far the most painful cuts until 2013 and 2014.
The mandate of Berlusconi's centre-right government runs out in 2013.
The 74-year-old prime minister's motorcade was met by around 100 protesters outside government offices in central Rome as he arrived for the news conference.
"Clown!" one man shouted. Another said: "You are the ruin of Italy, go home!"
Berlusconi also told reporters he had agreed with French President Nicolas Sarkozy on holding an emergency meeting of G7 finance ministers of leading world economies in a few days to discuss the debt crisis ahead of a possible G8 summit.
France holds the presidency of the G7, G8 and G20 economic powers.
A spokesman for Berlusconi, Paolo Bonaiuti, later said that the prime minister's comments were part of an "ongoing reflection" and did not mean that "a decision has been taken" on the international meeting.
Copyright © 2011 AFP. All rights reserved.
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