Italy's public service unions protest

Italian public sector unions stepped up the pressure last month against the economic policies of the government led by Silvio Berlusconi, following the general strike on 30 November.

The unions argue that the tax reductions being introduced by the government are producing cuts in public spending and investment in other areas, like the depressed south of the country and research and development.

They are particularly concerned at the plans to cut around 75,000 public sector jobs in the period 2005-2006 and the fact a new pay agreement for public sector, which should have come into effect at the beginning of 2004, has still not been signed.

There was a major demonstration by public sector workers in Rome on 10 December and the unions have promised to repeat the action in all provincial capitals in January.

Guglielmo Epifani, general secretary of the largest union confederation, CGIL, told protestors that the government was failing to face the "real problems of the country" and "ignoring the demands of millions of workers".

Public spending cuts are already having an impact on social services in Italy. A study by IRES, a research body linked to CGIL, found that, in 2004, 31% of cities had been compelled to reduce their social spending because of cuts in the sums provided by central government.

This year, on basis of the cuts now planned, 80% to 90% of provincial capitals will face the choice of cuts or sharp rises in local taxes.