IMF demands more austerity for Italy

The International Monetary Fund (IMF) has urged Italy to follow through with controversial austerity measures, as the country's economy remains in crisis. In its latest report on Italy's struggling economy, on Thursday the IMF credited Prime Minister Matteo Renzi for outlining ‘a bold reform agenda.’ Renzi has vowed to slash public sector jobs and strip long term workers of many of their rights under current Italian labour law. He has also pledged to reform the judicial system and boost national output. ‘Firm implementation is now essential to create jobs, increase productivity, and lift potential growth from a low estimate of about ½ per cent,’ the IMF stated. ‘(The IMF's) directors stressed the urgency of labor market reforms to reduce duality and increase flexibility, building on recent gains,’ the statement said. The organization predicted Italy's recession will break in 2015, when growth is expected to reach 1.1 per cent, according to telesurtv.net