New Italian PM wins senate confidence vote

The new government of Italy under the chairmanship of Prime Minister Matteo Renzi won a crucial confidence vote in the Senate early Tuesday. Renzi called for a “radical and immediate change” in recession-hit Italy as he outlined his new government’s reform agenda. In an energetic and impassioned speech to parliament, Italy’s youngest-ever premier reiterated plans for rapidly overhauling the tax system, jobs market and public administration in a bid to tackle the country’s ailing economy. Renzi, who grasped power after helping oust his predecessor Enrico Letta over failures to do enough to boost a flagging economy, later won the vote of confidence, with 169 votes in favour and 139 against, according to Senate speaker Pietro Grasso. In his speech, he pledged to review unemployment benefits, establish a guarantee fund for small companies and comprehensively reform the justice system. He also promised to cut the tax burden by a double-digit figure within months and pay off public administration debts. The initial reaction from investors appeared positive, with Milan’s FTSE stock market closing up 0.48 percent after Renzi’s speech. The former mayor of Florence had been expected to win the confidence vote 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. He must now face a confidence vote in the lower house of parliament late Tuesday. US President Barack Obama spoke to Renzi on Monday, the White House said, adding that the two leaders would meet in March in Rome. Obama expressed support for “Renzi’s leadership on creating economic growth and jobs, and he looks forward to continued close US-Italian partnership on Afghanistan, Libya, the Transatlantic Trade and Investment Partnership, and security and defense cooperation,” the White House said in a statement.