Clashes with police over budget cuts and government — Milan, Italy

Students have clashed with police across Italy in protests against budget cuts, while transport strikes halted buses and trains.

The clashes came as Premier Mario Monti prepared to unveil his anti-crisis strategy ahead of a confidence vote in his day-old government.

Police in riot gear scuffled with students in Milan, where they planned to march to Bocconi University, which forms Italy’s business elite. Mr Monti, an economist and former European Union competition commissioner, is Bocconi’s president.

Mr Monti formed his government yesterday, shunning politicians and turning to fellow professors, bankers and other business figures to fill key cabinet posts. His administration is tasked with restoring confidence in the country’s financial future and avoiding a worsening in the eurozone’s debt crisis.

But his choice of unelected experts to lead the government and the prospect of tough reforms have fuelled unrest among some Italians.

‘The government of the banks,’ read one placard held by a youth marching in the protest in Milan.

Mr Monti’s cabinet took the place of the centre-right government led for more than three years by media mogul Silvio Berlusconi, who stepped down last week, the victim of markets punishing Italy for its escalating public debt and stubbornly stagnant economy.

Parliament has backed a package that will reform pensions, slash state spending and open up the economy.

But many Italians are expecting to swallow harsher medicine, including a possible return of home property taxes which Mr Berlusconi abolished, a special tax on wealth, and a faster increase in the retirement age.

Alitalia warned that a four-hour strike, from noon to 4 pm in the air travel sector could cause flight delays, and said it was reducing the number of flights as a precaution during the four-hour window.

It noted that the walkout mainly involved air traffic controllers and airport workers and not Alitalia personnel.

Economist Mario Monti today formed his new government yesterday without a single politician - drawing from the ranks of bankers, diplomats and business executives to make sure Italy escapes looming financial disaster.

The 68-year-old former European Union competition commissioner said he will serve as Italy’s economy minister as well as premier for now as he seeks to implement ‘sacrifices’ to heal the country’s finances and set the economy growing again. He stressed that Italy’s economic growth is a top priority.

Restoring confidence in Italy’s financial future is crucial because, as the third-largest economy in the eurozone, it is too big for Europe to rescue. A debt default by Italy would threaten the euro itself and shake the global economy.

Monti has gave few hints about his political programme, sidestepping a question about whether the government would dip into citizens’ bank accounts as it did decades ago during another debt crisis.

http://www.dailymail.co.uk/news/article-2062731/Italy-protests-Students-clash-riot-police-demo-budget-cuts-government.html?ITO=1490

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