Showtime as Italy's Renzi unveils new programme
Italy's new Prime Minister Matteo Renzi was to unveil details of his ambitious government programme on Monday.
Renzi faced a confidence vote in parliament in a key test of his power to unite warring factions and secure a solid majority.
The new premier is expected to present plans for rapidly overhauling the tax system, job market and public administration in his speech to the Senate, which will put his newly-formed cabinet to a confidence vote.
The former mayor of Florence is expected to win based on the support of his own centre-left Democratic Party (PD) and his coalition partners --the centrists and the New Centre Right (NCD) party.
Political analysts will however be paying close attention to the size of the majority he manages to secure, as an indication as to whether the new government has a chance of living out its mandate until 2018 or whether the country will end up back at the polls.
Renzi seized power last week after unseating his predecessor Enrico Letta and has promised speed and efficiency in tackling recession-hit Italy's ills, vowing not to be dragged down by the weight of Italian bureaucracy or hampered by political squabbles.
"By keeping up the momentum, Renzi is increasing the chances of these important reforms going through despite likely resistance from various camps," Christian Schulz, senior economist at Berenburg, said in a note.
"Much will depend on the concrete reform proposals and how they will be watered down in the inevitable political wrangling afterwards," he said.
Italy's European partners will be watching the first steps taken by the country's new Finance Minister Pier Carlo Padoan, who brings to the table his experience as chief economist at the Organisation for Economic Cooperation and Development (OECD).
New secretary of state Graziano Delrio this weekend said Italy would stay within the European Union's deficit ceiling of 3 percent of GDP, contradicting earlier comments by Renzi.
He said the government would cut taxes on non-wage labour costs through cuts to spending, but also suggested a possible rise in taxes on investments like short-term treasury bills.
"From a government which made 'new' and 'fresh' its calling card, one could have hoped for more things 'new' and 'fresh'. Not just one of the more classic 'deja vus' of Italian politics: Taxes," the Corriere della Sera said.
The government appeared to do an about-turn on the subject late Sunday, issuing a note saying "we are not planning nor will there be any new tax", suggesting some confusion and last-minute decisions in the brand new cabinet.
On Sunday, Renzi took to Twitter to respond to questions from followers in a sign of changing times under the country's youngest-ever prime minister.
The 39-year-old promised a "surprise" on the digital economy and said he was gearing up for "the mother of all battles" against Italy's stifling and reform-blocking bureaucracy.
Whether he can secure enough support to implement his reforms is yet to be seen.
"There are many senators who have bellyached about this government," said Francesco Grignetti in La Stampa daily.
- Sapa