Millions of Italians stopped work last Tuesday in protest at the economic policies of their government.
The half-day stoppage crippled public transport and shut factories and banks. Alitalia cancelled more than 100 flights. Government departments were shut and medical staff staged an eight-hour strike.
The action was called by the main trade union federations, and backed by the opposition, in protest against an austerity budget for 2005 that imposes sacrifices of â,¬24-billion.
But Prime Minister Silvio Berlusconi wrong-footed his critics by persuading his ministers to agree to â,¬6,5-billion of tax cuts — a measure that has given his popularity ratings a much-needed fillip.
In Rome, Romano Prodi, unofficial leader of the Italian opposition, declared the strike ”was not just ‘anti’, but a way of bringing everyone together to prepare for the future”.
Berlusconi was voted into office largely because Italians believed the billionaire-turned-politician could bring his Midas touch to bear on Italy’s sclerotic economy. Three years on and Italy still has one of the lowest growth rates in Europe. A string of corporate failures has highlighted problems in the economy.
Both the employers’ federation and a small trade union federation close to Berlusconi’s government have been critical of its policies.
The prime minister had promised tax cuts before the 2001 election, but has been constrained by Italy’s membership of the euro, which commits it to prudent fiscal housekeeping.
Prodi predicted the tax cuts would force the government to demand further sacrifices if it was to keep its word to its eurozone partners. He challenged the government’s claim that it had found the money to fund the tax cuts. ”The â,¬6-billion the government talks about isn’t there,” Prodi said.
Savino Pezzotta, who leads the CISL, Italy’s second-largest labour federation, said that next year’s budget would ”give more to those who have most and less to those who have least”. — Â