Italians must work 'harder, longer and in greater numbers' Bank of Italy governor backs govt's structural reforms

Bank of Italy Governor Ignazio Visco threw his weight behind Premier Mario Monti's bid to introduce structural economic reforms when he said on Wednesday that Italians must work "harder, in greater numbers and for longer".

After passing a 30-billion-euro austerity package that included tax increases, spending cuts and a gradual increase in the retirement age to 67 in December, Monti's emergency government is now trying to push measures through parliament to revitalise the Italian economy.

A series of economic liberalisations that the government hopes will boost growth, which has been sluggish for a decade, has moved to the House after winning approval in the Senate last week.

The government is also in talks with unions and business associations over labour reforms to make it easier for women and young people to find jobs, with over 30% of 15-to-24-year-olds out of work in Italy.

"Efforts for financial stability must be accompanied by structural reforms that are equally necessary," said Visco, who described Italy as an "old" country that needs to remove many "obstacles to growth".

"Maintaining the standard of living reached in our country requires raising the intensity of human capital and a resumption of the growth in productivity.

"We cannot fail to demand that people work harder, in greater numbers and for longer".

Among the labour reforms the government is considering is a move to make it easier for firms to dismiss workers, which many economists believe would actually make them less reluctant to hire people on regular, steady contracts.

The unions are staunchly opposed to making it easier for companies to put people on the dole.