Fiat CEO endorses Italy PM Renzi's reform efforts
By Bernie Woodall
AUBURN HILLS Mich. (Reuters) - Fiat Chrysler CEO Sergio Marchionne said on Thursday Italian Prime Minister Matteo Renzi must ignore critics and push ahead with plans to reform the country's economy.
Marchionne's support contrasts with signs of growing disillusionment among other Italian business leaders in recent weeks, and comes at a crucial moment for Renzi as he prepares to outline disputed plans to overhaul labour laws on Monday.
"What is important is that he must have the courage to forge ahead without being intimidated," Marchionne said at a joint press conference with Renzi in Auburn Hills, Michigan, where Chrysler is based.
Marchionne, who has run Fiat since 2004 and revived its fortunes through the tie-up with Chrysler, has been fiercely criticised in Italy for his plan to move the headquarters to London and running roughshod over strict labour rules.
"I've been heavily criticised in certain Italian quarters, and I never gave a hoot. In my opinion, (Renzi) must do the same," he told reporters.
The 39-year-old prime minister, who took office in February, has promised sweeping economic reforms to try to revive growth in the euro zone's third-biggest economy, which sank into its third recession in six years in the second quarter.
But he has so far made little progress with major reforms, and his plans to liberalise labour laws to reduce high unemployment not only are drawing fire from unions, but also from left-wing elements within his own Democratic Party (PD).
"I'm not interested in discussions between political factions (in the PD); I'm interested in reducing unemployment in Italy," Renzi said, adding that he saw no risk of his party splitting over the issue.
At more than 12 percent, Italian unemployment is at its highest level since the 1970s, and the youth unemployment is hovering near 43 percent.
RESTLESSNESS
Though polls show that Renzi's personal popularity remains high, there has been growing restlessness with Italy's youngest ever premier among Italian business circles in recent weeks.
Diego Della Valle, president and CEO of leather goods company Tod's, commented on Friday in a television interview that both Marchionne and Renzi "are ripoffs".
Della Valle said of Renzi: "Until a few months ago, I thought he was a resource for the country," but added he was now disappointed, describing the prime minister as "a lad who talks a lot but does not get things done".
The new rules will aim to simplify the labour code, the government has said, replacing the more than 40 different contract types with a simpler system based around one or two basic contracts.
One of its main objectives is to eliminate the so-called "dual labour market" which separates workers in heavily protected full-time jobs from the growing number on temporary contracts with few rights.
Italy's biggest metal workers union already has announced a demonstration in Rome next month to protest at the package.
(Additional reporting by Silvia Aloisi in Milan; Writing by Steve Scherer; Editing by Mark Heinrich)
