Berlusconi government takes moves to boost growth

ROME: The Italian government on Wednesday adopted a series of measures aimed at boosting economic growth, including amendments to the constitution, Prime Minister Silvio Berlusconi announced.

"This new phase of government activity is marked by measures aimed at relaunching the economy, for growth and development," Berlusconi told reporters.

The prime minister, embroiled in a sex scandal, announced that he intended in two weeks to give the economy a jolt which would help growth reach three or four percent in five years, compared to the current rate of one percent.

He said he was convinced that the country could achieve a minimum of 1.5 percent growth this year, a rate higher than the 1.3 percent estimate which his government gave last September.

The Italian central bank believes even the earlier prediction is optimistic, estimating a more modest rise of one percent.

To achieve his aim Berlusconi wants notably to reform the national constitution, re-writing an article dealing with freedom of enterprise.

He also plans to relaunch a 2009 housing plan and to speed up a plan to tackle the underprivileged south.

"We are pushing to speed up public works," Berlusconi assured.

However any change to the constitution would involve a lengthy and complicated legislative procedure which would require several measures by both parliamentary houses.

Following criticism that Berlusconi has been neglecting Italy's glaring problems and devoting too much time to affairs with an array of young models, the prime minister last week announced plans to whip Italy's economy into shape.

The Italian leader's plans also include tax breaks for businesses and young people. Italy's jobless rate among 15-24 year olds hit a seven-year high of 29 percent in December.

Finance Minister Giulio Tremonti -- pegged by some as a potential future prime minister should Berlusconi fall -- has given the nod for the measures as long as they do not worsen Italy's debt.

Meanwhile Milan prosecutors on Wednesday requested an immediate trial for Berlusconi, who stands accused of abuse of power and having sex with an underage girl nicknamed Ruby the Heartstealer.

Berlusconi reacted by condemning his accusers as acting subversively and dismissed their case as a pretext to oust him.

"Parliament is paralysed by the government's incapacity to propose concrete measures to support the economy and Berlusconi announcing these reforms for the umpteenth time," which are basically plans to boost his southern powerbase, said Democratic Party leader Marina Sereni.

"Not one business, not one worker, not one family will obtain a single advantage from the initiatives which the government wants to take today," she added.