Italy – Prime Minister Silvio Berlusconi Steps Down from Office

November 13, 2011

By Padmini Arhant

Italian Prime Minister Silvio Berlusconi resigns after no confidence vote against his political party in the parliament and financial markets reaction to Italy’s economic status considering direct impact on seventeen members euro zone as well as Europe and U.S. economy.

The former Prime Minister Silvio Berlusconi assumed power in 1994 becoming the longest serving premier in recent times leading Italian economy on the brink of collapse.

Italy’s national debt at euro 1.9 trillion ($2.6 trillion) – twice as much the combined total of Portugal, Ireland, Greece and Spain is the genuine cause for trepidation in the economic and political circle.

Ex-Premier Berlusconi tenure specifically the final term preoccupied in battling corruption charges and personal scandals deflected attention from economic and political issues resulting in the loss of mid-term elections this year.

Despite the writing on the wall, the then Prime Minister Silvio Berlusconi remained defiant in accepting reality without the ability to govern the third largest economy in Europe effectively and avert the contagion factor on Italian shores.

Italy is at the crossroads with unique opportunity to not only resolve the immediate economic crisis but also demonstrate adeptness as a credible and viable euro zone partner.

Italian President Giorgio Napolitano and citizens’ choice – former European commissioner Mario Monti as the interim successor to lead the government at the critical juncture is sagacious given the nominee’s credentials and economics background suitable to address the existing challenges expediting anticipated revival.

The general election scheduled in early 2012 is indicative of democratic process taking precedence following the end of Berlusconi era.

Euro zone expectation on economic reforms from members struggling with credit default prevention is a balancing act that requires prudence in national budget reflecting revenue and austerity measures aimed at economic growth and debt containment.

EU recommendation to extend retirement age beginning 2026 might provide tax generated income.

However, the strategy could affect youth employment especially the fresh graduates and those in middle management aspiring executive and senior positions in service and manufacturing sector.

Ideally in full employment conditions, increasing retirement age could boost productivity yielding proportionate earnings necessitating inflation control at the same time.

The status quo with high unemployment in sluggish economy on the verge of recession essentially dependent on job creation and entrepreneurial incentives to youth labor force often frustrated due to lack of jobs and environment to hone newly acquired skills in the competitive labor market.

This situation has trickle down effect on youth population seeking higher education costing more in the absence of adequate educational funding exacerbated by long search to secure jobs – common experience shared by occupy protestors all over.

Job market flexibility to capitalize diversity in youth talent facilitating niche marketing could ease the burden on taxpayers across the spectrum.

Quest for advanced education and vocational training would continue to rise upon job availability for different calibre.

Hence economic policy with extensive and innovative job programs would gain public support besides contributing to national output and deficit reduction.

Private investments and government divestment from military warfare for economic development could stimulate domestic jobs stabilizing bond market for capital arrangement to meet government commitments.

Italy is evidently rejoicing the much awaited political outcome and now preparing to rescue the nation and euro zone from economic meltdown.

The daunting tasks ahead require unified effort and political will from all sides to rebuild Italy’s economy.

The People of Freedom, Lega Nord or the Northern League in particular along with Democratic Party and alliances are urged to extend co-operation to Italian premier Mario Monti in surviving economic turbulence faced by the great nation – Italy and European Union.

Congratulations and Good Luck! To Prime Minister Mario Monti, President Giorgio Napolitano, Council of Ministers, Parliament members and the citizens of Italy for a new chapter in political history.

Best Wishes to Italy and euro zone for swift economic recovery.

Peace to all!

Thank you.

Padmini Arhant


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