• by IPS Correspondents (rome)
• Friday, December 02, 1994
• Inter Press Service

ROME, Dic 02 (IPS) - The agreement on pension reforms drawn up between the Italian government and labour unions on Thursday drew praise from a broad sector.

Leader of the Confederation of Italian Unions (CISL), Sergio D'Antoni, said it is now obvious "that no one can govern a modern society without the contribution of the main protagonists of national life."

Secretary General of the General Workers' Confederation (CGIL), Sergio Cofferati, called the pact "important and positive" saying it signifies that the country is able to deal with its priorities.

A representative of the Democratic Left Party (PDS), the main opposition force, said, "the Berlusconi government has finally realised that it cannot govern without discussion, at the risk of falling into despotism."

The agreement between Prime Minister Silvio Berlusconi, entrepreneurs and the three leading union confederations was made at the end of a gruelling 24-hour meeting.

As a result of the accord, an eight-hour general strike planned for Dec. 2 was cancelled.

There were also positive reactions to the move in the financial market, where the lira rose slightly against the dollar.

The change in the budget proposal will imply the recovery of 625 million dollars, to be used to increase employment in the country where 10.6 percent of the population are out of work. Berlusconi made campaign promises to create a million new jobs.

Another 1.8 billion dollars will be spent in southern Italy, where poverty is most severe.

The new agreement regarding pensions states that those under the age of 65 with 35 years of employment will not be able to retire Jun. 30 1995 - a year early than Berlusconi's original proposal, and a commitment by the government to present a welfare reform bill.

The contentious budget proposal containing the pension legislation has already been approved by Parliament, but has yet to be cleared by the Senate, where the government is in a minority.

The proposal, which aims to reduce the fiscal deficit by 32 billion dollars, is more likely to be approved now as the left- wing and centre Senators support the unions.

"Italy needs agreement and responsible conduct. If we all work in the right direction, the country can overcome this difficult phase and direct itself towards the reactivation of the economy in an atmosphere of social calm," said Berlusconi.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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