Appointment Napolitano. On 9 November 2011, Monti was appointed a
lifetime senator by
Italian President Giorgio Napolitano. He was seen as a favourite to replace Silvio Berlusconi to lead a new unity government in Italy in order to implement reforms and austerity measures. On 12 November 2011, following Berlusconi's resignation, Napolitano invited Monti to form a new government. Monti accepted the offer, and held talks with the leaders of the main Italian political parties, declaring that he wanted to form a government that would remain in office until the next scheduled general elections in 2013. On 16 November 2011, Monti was sworn in as
Prime Minister of Italy, after unveiling a
technocratic cabinet composed entirely of unelected
professionals. He also chose to hold the post of
Minister of Economy and Finance. On 17 and 18 November 2011, the
Italian Senate and
Italian Chamber of Deputies both passed motions of confidence supporting Monti's government, with only
Lega Nord voting against.
Austerity measures On 4 December 2011, Monti's government introduced emergency austerity measures intended to stem the worsening economic conditions in Italy and restore market confidence, especially after rising
Italian government bond yields began to threaten Italy's financial stability. The
austerity package called for increased taxes, pension reform and measures to fight tax evasion. Monti also announced that he would be giving up his own salary as part of the reforms. On 16 December 2011, the
Lower House of the Italian Parliament adopted the measures by a vote of 495 to 88. Six days later, the
Upper House gave final approval to the package by a vote of 257 to 41.
Labour market reforms Hillary Clinton, 2012. On 20 January 2012, Monti's government formally adopted a package of reforms targeting Italy's labour market. The reforms are intended to open certain professions (such as taxi drivers, pharmacists, doctors, lawyers and notaries) to more competition by reforming their licensing systems and abolishing minimum tariffs for their services. Article 18 of Italy's labour code, which requires companies that employ 15 or more workers to re-hire (rather than compensate) any employee found to have been fired without just cause, would also be reformed. The reforms to Article 18 are intended to make it easier for companies to dismiss or lay off employees, which would hopefully encourage companies to hire more employees on permanent rather than short-term renewable contracts. In early January 2012, consultations between the government and labour unions commenced and on 13 February, it was reported in the Italian media that a compromise on the proposals was very close and the government was hopeful that reforms could be approved by the Italian parliament in March.
2013 election On 21 December 2012, Monti announced his resignation as prime minister, having made a public promise to step down on 8 December, after the passing of the 2013 Budget. He initially stated that he would only remain in office until
an early election could be held. However, on 28 December, he announced that he would seek to remain prime minister by contesting the election, as the leader of a centrist coalition, the
Civic Choice. The election was held on 24 February 2013, and Monti's centrist coalition was only able to come fourth, with 10.5% of the vote. Monti remained prime minister until a coalition was formed on 28 April, led by
Enrico Letta. ==Political career==