Monti makes cuts in wrong places

The Italian cabinet approved the stringent austerity programme proposed by Prime Minister Mario Monti on Sunday evening. Pension cuts and an income tax hike are the main points of the 2012 austerity package, which aims to shrink spending by 24 billion euros. If all goes as planned it will receive the blessing of the two chambers of parliament by Christmas. But the real problems aren't being tackled, the liberal daily Corriere del Ticino complains: "Italy's main problem is its gigantic public sector which gobbles up 45 percent of revenues. Every second euro is spent according to criteria fixed by the public administration. Until there's a drastic cut in public spending all other measures for cleaning up the Italian economy will be ineffectual. But the Monti government seems to take no interest in the subject. Most of the ministers in the cabinet come from the upper echelons of the public administration. Even if they are capable technocrats they'll hardly be well disposed towards major upheavals in the world were they have made their careers."

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