Financial Times FT.com

Italian politics gets in way of economic reform

By Tony Barber in Rome

Published: November 23 2005 18:00 | Last updated: November 23 2005 18:00

Italy’s centre-right government ran into trouble on Wednesday with two big salvage operations – one designed to prop up the over-strained state pensions system, and the other to save Alitalia, the state-owned airline, from collapse.

The government’s difficulties underlined how serious Italy’s political and economic challenges are becoming as it approaches a general election next April that will pit Silvio Berlusconi, prime minister, against Romano Prodi, leader of the centre-left opposition.

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