Italian Prime Minister Mario Monti approved a controversial emergency program on Friday in a bid to rescue the debt-stricken nation from the brink of recession.

"The cabinet today adopted a draft bill with a package of structural reforms for growth," Monti told reporters at a press conference in Rome. The liberalization measures have been designed to open up competition in a wide-range of sectors and update ancient infrastructures in order to kick-start the economy and encourage youth employment.

"More competition means more openness, more space for young people, less space for privileges and rent-seeking, more space for merit," the Italian technocrat said.

The plan is aimed at ending protectionist practices among taxi drivers, pharmacy owners and petrol stations as well as in a number of other Italian industries. Restrictions constrain much Italian economic competition and many professions are organized around associations dating back decades.

Hotly contested changes

The measures, which include issuing more taxi licenses, permitting pharmacists to reduce prices on selected medicines and scrapping minimum fees for doctors and lawyers, have been fiercely opposed by Italian trade unions.

Taxi drivers staged wildcat strikes last week in protest against the reforms, and taxi unions have proposed a national strike for Monday. Meanwhile the Federfarm pharmacy association has threatened "extreme forms of protest."

Nevertheless many Italians support the changes as a necessary evil in the wake of a 30-billion-euro ($39 billion) austerity package introduced in December.

The measures were Monti's latest attempt to reduce Italian debt, which is equal to 120 percent of Gross Domestic Product, or double the 60-percent EU ceiling. They take immediate effect, although they must still be approved by parliament in order to be converted into law.

Author: Charlotte Chelsom-Pill (AP, Reuters)
Editor: Andrew Bowen