Friday, July 21, 2006

Concessions to taxi drivers cloud Italy reforms


It looks like the end of the new Italian government´s services reform package. They fell at the first hurdle, trying to open up the taxi licensing system.

Pharmacists, bakers, lawyers, notaries, all of whom are on the list, now know what they need to do to keep their cushy government protections. Just go out and make a bit of noise.

Onésimo Alvarez-Moro

See article:
Prospects for long overdue economic change in Italy appeared in jeopardy yesterday after the ruling centre-left coalition made concessions to taxi drivers that consumer groups and the political opposition termed a defeat for government reformers.

After a four-day strike that caused travel chaos across Italy, the taxi drivers forced the government of Romano Prodi, prime minister, to withdraw a proposal to increase the number of taxi licences and inject more competition into one of the country's most protected services.

It was the first big setback for the government, which was elected in April and had won early praise for being honest about Italy's economic problems and for making a seemingly bold attempt at tackling en-trenched interests.

More trouble is looming over the government's intention to cut Italy's budget deficit to meet European Union rules and slash labour costs to improve business competitiveness.

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