Italian strike against cuts piles pressure on govt

September 6, 2011 - 7:15 AM
APTOPIX Italy Financial Crisis

Demonstrators march past the Colosseum during a general strike in Rome, Tuesday, Sept. 6, 2011. With Silvio Berlusconi's government under increasing pressure to produce credible measures to balance the budget, a strike by Italy's largest labor union against an austerity package shut down air, land and sea transport, stalled manufacturing and curtailed government services throughout the country on Tuesday. Susanna Camusso, head of the left-leaning CGIL, said the euro 45.5 billion ($68 billion) austerity package needs to be thrown out and substituted with fairer measures. (AP Photo/Pier Paolo Cito)

MILAN (AP) — A nationwide strike in Italy against austerity measures brought the country to a halt on Tuesday, piling pressure on Silvio Berlusconi's government as it tries to convince nervous markets that it can produce and enforce a credible deficit-cutting plan.

The strike by Italy's largest union shut down air, land and sea transport, stalled manufacturing and curtailed government services.

Susanna Camusso, head of the left-leaning CGIL union, said the current proposal for euro45.5 billion ($68 billion) in austerity cuts needs to be thrown out and substituted with fairer measures. Unions claim it fails to create jobs while putting too much burden on workers.

"We are striking against measures that are unjust. We are striking against measures that are irresponsible, and which put all of the burden on public sector workers," Camusso told demonstrators in Rome.

The Senate takes up the measures on Tuesday, with details still the subject of fierce political fighting.

Camusso pledged to bring lawsuits and court cases against the current draft plan of austerity measures, which among other things want to make it easier to fire workers.

It's a delicate moment for Berlusconi's government, which is under intense international pressure to pass measures this month aimed at balancing the budget by 2013. Worries that it is backtracking on some of its pledges have seen investors push up the country's borrowing rates.

Italy's president on Monday urged political leaders to come up with "more efficient measures" citing "alarming signs" that the financial crisis is worsening.

Workers for the state railway, city transit systems and ferry services all were on strike for periods throughout the day, creating difficulties for travelers. Hospital workers, postal employees and bank tellers also joined in, although adherence varied greatly. And workers for such industrial concerns as Fiat also participated.

Court proceedings at the appeals trial in Perugia of U.S. student Amanda Knox, who has been convicted of murder, were delayed by about an hour as members of the jury arrived late due to the strike.

In an unusual alliance, union hard-liners and the main industrial lobby agree that the measures contain virtually nothing to stimulate Italy's practically flat economic growth. But two other unions refused to join the strike call, saying it sent the wrong message to investors.

Investors have been unsettled by the bickering among Berlusconi's allies on the best measures to balance the budget.

Italian borrowing costs soared this week, despite an ongoing program by the European Central Bank to buy up Italian and Spanish government bonds and keep their interest rates low.

Italy's central bank chief Mario Draghi warned on Monday that Italy should not take for granted the ECB's support. Draghi is set to replace Jean Claude Trichet as head of the ECB on Nov. 1.

"The program is temporary," Draghi said at a Paris conference. "It cannot be used to circumvent the fundamental principle of budgetary discipline... in other words it should not be taken for granted by member states. "