Italy: No to Austerity

Italy's 55th Prime Minister, Enrico Letta, says his coalition government will act fast to reverse an austerity policy he argues is killing Italy and has called on Europe to become a motor for growth.

"Italy is dying from austerity alone. Growth policies cannot wait," Mr Letta said during his inaugural speech to parliament on Monday, under the watchful gaze of European partners.

The recession-hit country is under pressure to act fast to tackle social, economic and institutional ills.

Letta, who was sworn in with his cabinet on Sunday, promised to have results in 18 months or "take the consequences".

Letta's hard-hitting speech appears to have reassured the MPs, who backed the new government by 453 to 153 in a confidence vote in Italy's lower house of parliament late on Monday.

Earlier, Letta told parliament that the economic situation in Italy – one of the first countries to fall prey to the eurozone debt crisis – was "still serious" and its €2 trillion ($2.56 trillion) debt "weighs heavily" on ordinary Italians.

But he also looked to Europe, saying it was suffering from "a crisis of legitimacy and . . . must become once more a motor of sustainable growth" – a reference to his aim to persuade Europe to reverse its discredited austerity policy.

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