Italian Prime Minister Mario Monti resigned Friday, ending a 13-month tenure and clearing the way for elections that will focus on his crisis fighting austerity policies.
The appointed premier, an economist, submitted his resignation to President Giorgio Napolitano, according to a statement from the president’s office. Napolitano asked Monti’s Cabinet to remain in power to handle routine government administration. Monti stepped down after lawmakers passed a 2013 budget law. The president has suggested Feb. 24 as the date for elections.
Monti took over last year just as Italy risked becoming the next victim of Europe’s debt turmoil under former Premier Silvio Berlusconi. While he’s overseen a recovery in Italy’s bonds and repaired its tattered standing abroad, his agenda left Italians with higher taxes, rising unemployment and a shrinking economy.
Monti, who has never sought elected office, may use a Sunday news conference to announce whether he’ll sit outthe election, or heed the call of a group of centrist political parties who want him to run on a platform of continued change for the eurozone’s third-largest economy.
A former adviser to Goldman Sachs Group Inc., Monti imposed $26.5 billion in austerity measures. He raised taxes, cut spending, increased the retirement age and overhauled labor rules to make firing easier. The policies have left Italy on track to cut its deficit to within the European Union target of 3 percent of output this year.
Business, Pages 28 on 12/22/2012