New PM Renzi govt wins confidence vote

New Italian prime minister Matteo Renzi has won a vote of confidence in the Senate for his planned program of "radical and immediate change".

New prime minister Matteo Renzi called for a "radical and immediate change" in recession-hit Italy as he outlined his new government's program before winning a vote of confidence in the Senate.

In an energetic and impassioned speech to parliament that was light on detail, the new premier said there were no excuses for failing to tackle the country's ills.

He told senators Italy would become a "country of opportunity" and later won the vote of confidence, with 169 votes in favour and 139 against, according to Senate speaker Pietro Grasso.

"If we lose this challenge the fault will be mine alone. No-one has an alibi any more," said the 39-year-old, Italy's youngest prime minister.

"This is an Italy of possibilities, an Italy of fundamental change," he said, stressing the "urgency" of implementing reforms in "a rusty country... gripped by anxiety".

Renzi, who grasped power after helping oust his predecessor Enrico Letta over failures to do enough to boost a flagging economy, reiterated plans for rapidly overhauling the tax system, job market and public administration.

He pledged to review unemployment benefits, establish a guarantee fund for small companies and comprehensively reform the justice system.

He also promised to cut the tax burden by a double-digit figure within months and pay off public administration debts.

The initial reaction from investors appeared positive, with Milan's FTSE stock market closing up 0.48 per cent after Renzi's speech.

But small business association Confartigianato wondered where the PM hoped to find the money for the reforms, with its head Giorgio Merletti saying "a couple of quick sums show that there is 100 billion euros ($A153 billion) to find immediately".

The anti-establishment Five Star movement - Italy's other main opposition party - has called for immediate elections, and some political watchers say Renzi's failure could significantly boost their numbers.

A bold-faced Renzi stared down critics hollering insults from among the movement's benches, and spoke out against populism and for Europe.

He said Italy must tackle its towering public debt - equivalent to 130 per cent of total economic output - not because German Chancellor Angela Merkel has called for it, but because "it is our duty to, for our children's sake".

He spoke of the need for greater transparency - making public spending receipts available online - and of the need to attract foreign investors and shake off the image of Italy "as just a great holiday destination".


3 min read

Published

Updated

Source: AAP



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