Financial Times FT.com

Italy votes on pension reform

By Guy Dinmore in Rome

Published: October 9 2007 03:00 | Last updated: October 9 2007 03:00

Italians started voting yesterday in a referendum on a landmark pensions and labour reform agreement that has threatened the stability of the fragile centre-left coalition led by Romano Prodi, prime minister.

Although both the unions and government, which forged the welfare agreement on July 23, expect a majority in favour, a poor turnout or small margin of victory would strengthen the position of two communist parties in the coalition demanding changes when the accord goes to parliament.

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