Italian PM Promises Economic ‘Turbo-Changes’ at Meeting with German Chancellor

ALBERTO PIZZOLI/AFP/Getty Images(ROME) — The young leader of Italy has promised Germany “turbo-changes” after Europe’s central bank pumped billions into Europe’s wilting economy.

On Friday, Italian Prime Minister Matteo Renzi and German Chancellor Angela Merkel met in Renzi’s Renaissance hometown of Florence, Italy, where he promised he would implement a series of reforms to reduce Italy’s staggering debt and kickstart its economy.

Germany has made it clear over recent years it wants Italy to clean up its economic act by loosening its labor laws, cutting red tape and clamping down on tax evasion. Though Italy and Germany share some of the same goals, the two countries differ over the austerity measure Germany has been championing.

Italy also wants Europe’s economic policy to be more about jobs and growth. This week, it welcomed the move by Europe’s bank to buy up huge amounts of government bonds to counteract deflation and the ongoing recession. In a move called quantitative easing, the bank bought the bonds with new money that it hopes banks will lend to businesses who will, in turn, create jobs — at least that’s the theory.

Germany’s Merkel is clearly not crazy about the idea. She fears it will make it too easy for countries like Italy to pay back their debt and therefore take their time on the structural changes that Germany wants at-risk countries such as Italy, Spain and Greece to make.

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