Italy’s new government unveiled austerity measures today in an attempt to begin dealing with serious debt issues that plague the country. The bond market in Italy, which is one of the world’s largest, has been in turmoil recently amid rising borrowing costs as investors flee – becoming a threat to Italy and the Euro as a whole. That bond market saw some relief today with hopes high it will last more than temporarily. To Italy’s credit they now are upfront about the issues they face and the need to deal with them. “Italians are to blame for our public debt, and we risk compromising everything we’ve accomplished in the last 60 years”, Prime Minister Mario Monti told a news conference. He also stated he will not accept a salary as premier and economy minister. In announcing pension overhauls which were part of the plan Labor Minister Elsa Fornero broke down in tears, saying the changes were necessary to avoid “collective impoverishment”. The pain of this reality is reflected in the photo of her below courtesy of AP/Wall Street Journal. Unfortunately this is the reality the world faces and is symbolic of the many future steps needed by the world’s developed nations.
