Economy / Politics

Italian Constitutional Court saves technocratic pension reform

The Italian Constitutional ruled that a proposed referendum to abrogate the pension reform enacted by Mario Monti’s technocratic Government cannot be held.

The referendum, supported by an odd alliance of conservative parties and leftist trade unions, was likely to succeed.

The possibility of a referendum being called had led the Government to consider modifications to the reform which is deemed by many too harsh, strict and rigid. It is unclear if all of this will be stopped by the ruling of the Court.

The Minister of the Civil Service Marianna Madia would like to launch a “generational relay” plan by which older civil servants would be allowed to go into early retirement in order to hire young graduates. However, Mrs Madia’s idea was criticized by some economists and needs public resources anyway.

Similar plans were launched by individual companies in the private sector pursuant to agreements with the trade unions.

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