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Last updated at: (Beijing Time) Saturday, August 24, 2002

Italian PM Defends His Government's Policies

Italian Premier Silvio Berlusconi brokean almost month-long "political silence" on Friday with a forcefuladdress in defense of his conservative government's policies.


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Italian Premier Silvio Berlusconi brokean almost month-long "political silence" on Friday with a forcefuladdress in defense of his conservative government's policies.

Berlusconi was greeted with a standing ovation as he entered the packed auditorium and then received gales of applause when he took off his suit jacket, rolled up his shirt sleeves and began his speech.

He said that a series of international events had weighed on the Italian economy, listing the aftermath of the Sept. 11 terrorist attacks in the US, the introduction of the euro in Jan. and the economic crisis in South America as the main factors that had ticked off at least a point off the growth figures.

"We've been unlucky. We've had to deal with a number of critical factors," said Berlusconi, stressing that the Italian economy had nevertheless made progress.

"GDP has risen one percent and this is a sign that the economy is moving forward," he said.

He pledged that the government would freeze public utilities tariffs in 2003 and would also take account of inflation figures when negotiating new work contracts.

Berlusconi also reiterated his "solemn" assurances that the centre-right government would carry out its electoral program by the end of its five-year term.

But he warned that in the fall the government would face stiff opposition from Italy's biggest trade union CGIL, which last monthrefused to endorse the government's wide-ranging 'Pact for Italy' labor reform package accepted by all other unions and employer associations.

CGIL leader Sergio Cofferati is working to organize a general strike against the government's plans to modify Article 18 of Italy's Worker's Statute.



Article 18 entitles unfairly-dismissed workers to be reinstatedand is staunchly defended by unions as a cornerstone of workers' rights.

The government wants to partially suspend Article 18 for an experimental three-year period, arguing that the 15-worker threshold at which the Statute automatically becomes operative is a disincentive to hiring and that suppressing the clause would help small firms overcome their reservations.

Berlusconi reiterated his stance today that the changes to Article 18 would foster the growth of small industries and "createnew employment opportunities."

Turning his attention to foreign affairs, Berlusconi said US President George W. Bush would not take a unilateral decision to attack Iraq.

"The US will be wise and prudent," said Berlusconi, adding thathe had assurances from Bush that "whatever decision will be made on Iraq" would be first discussed with him.

He also called on Iraq to accept weapons inspections from United Nations officials and said pressure must be kept up on Baghdad to bow to the request.

Referring to the crisis in the Middle East, Berlusconi repeatedhis view that the only way of ending the bloodshed between Palestinians and Israelis was through a negotiated "political solution."

On Italy's role in world affairs, He said the country had to make its weight felt.


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