Monti-Merkel show unity

Ben Southwood
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MARIO MONTI committed Italy to budgetary discipline, in a joint press conference with Germany’s premier Angela Merkel yesterday.

Though the estimate of Italy’s budget deficit for this year was revised up to two per cent, Merkel praised measures taken by Monti since he took over from Silvio Berlusconi. Monti touted the labour reforms he managed to pass through the Italian legislature.

Lombard Street Research said: “The euro-establishment’s contempt for Keynes is showing its inevitable results: deficit ratios in Spain and Italy are mounting, not falling.”