What austerity measures did Mario Monti’s government introduce after Silvio Berlusconi left office?

After taking office in 2011, the technocratic government led by Mario Monti implemented a series of austerity measures designed to reduce Italy’s deficit and stabilize the economy during the euro-zone debt crisis.12

Key measures introduced during 2012 included:

• Reinstatement of the national property tax: This tax was reintroduced to bolster government revenue.2
• Pension freeze: A measure aimed at curbing public spending by halting increases to pension payments.2
• Automotive fuel tax hike: A dramatic increase in taxes on fuel was enacted as part of the broader fiscal consolidation effort.2

These reforms were credited by financial markets with helping to lower Italy’s benchmark bond yields, which had reached dangerous levels during the political instability of the preceding administration. While these actions were viewed as necessary to prevent a financial meltdown, they were also criticized by political opponents, including Silvio Berlusconi, as being overly harsh.12