Economist and former European commissioner Mr Monti, who will be both prime minister and economic minister, has announced his new cabinet after two days of consultation.
Among the unelected technocrats appointed by him was Corrado Passera, chief executive of Italy's biggest retail bank Intesa Sanpaolo. He was named infrastructure and industry minister.
Mr Monti has the task of pushing through tough austerity plans demanded by European leaders to restore shattered confidence in the country.
Mr Monti said he was aiming to restart economic growth in Italy and hoped international markets would be placated by the installation of the new government.
He said it would need to convince the Italian public and parliament about what were expected to be painful austerity policies, and also paid tribute to outgoing PM Silvio Berlusconi who resigned on Saturday, bowing to market pressure.
The new government contained no politicians after disputes among the parties which had complicated Mr Monti's task of forming an administration.
Some analysts said lack of politicians in the line-up could make it more vulnerable to ambushes in parliament as it pushes through unpopular measures.
But Mr Monti said the lack of politicians would strengthen rather than weaken the government by enabling it to avoid political disputes and push ahead with vital reforms.
Underlining how much is at stake, yields on Italy's 10-year bonds went through 7% again on Wednesday, the level at which Greece and Ireland were forced into bailouts.
Mr Monti said he would present his austerity programme, to the Senate on Thursday. This is expected to be followed by a confidence vote in both houses of parliament.
Meanwhile the Greek coalition is due to win a confidence vote today as the two countries continue to battle their debt woes.
Despite the progress, there are fears that the crisis could spread to core eurozone members because of signs that France is being hit by rising borrowing costs.
Asian markets struggled as a result. Japan's Nikkei and the broader Topix index were both slightly down and the euro fell to a five-week low, dropping 0.6% against both the dollar and the yen.
It followed new discouraging data which showed the eurozone economy barely grew in the third quarter and predicts it will be in mild recession by the end of the year.
Both Italy and Greece have new governments which are working to push through painful reforms and austerity measures to slash their debts.
In Greece, Prime Minister Lucas Papademos is expected to win a vote of confidence in his six-day-old government as he tries to secure vital EU funding.
Lawmakers are due to give the new premier a three-month mandate to implement budget measures which will secure fresh bailouts from the other eurozone nations.
Mr Papademos has to implement tax rises and spending cuts in return for the loans.
Finance Minister Evangelos Venizelos said on Tuesday: "We will help ourselves and the eurozone if we do what we have to do now, quickly, responsibly, so that Greece can always be a member of the eurozone and for the eurozone to exist, to permanently overcome the risk of a default."
The government is set to start thrashing out a deal with private bondholders on Thursday to slash public debt but the Greek people fear it could lead to years of austerity.
Already angry after two turbulent years, tens of thousands of protesters are due to join an annual rally on Thursday to mark an uprising in 1973.
EU governments have until a summit on December 9 to come up with a more convincing strategy to bolster the eurozone.
Many analysts believe the only way to stem the contagion is for the European Central Bank to buy large amounts of bonds - in a similar way to quantitative easing - though Germany is reluctant.
Tidak ada komentar:
Posting Komentar