Mario Monti Risks Wrath of Italians

Prime Minister Mario Monti is at risk of making himself one of the most unpopular men in Italy this week after proposing that Italians should swallow 40 billion euros in additional emergency economic measures. This, of course, in the face of the country's fifth recession in the last decade. According to Bloomberg, the cabinet has already approved the package and Monti will present it in Rome on Monday. “The premier has vowed “shared sacrifices” as he seeks to cut the euro area's second-biggest debt and regain investor confidence after Italian borrowing costs exceeded the 7 percent threshold that led Greece, Ireland and Portugal to seek aid. Italy's 10- year bond yield dropped 51 basis points to 6.17 percent today,” the article states. “The huge public debt of Italy isn't the fault of Europe, it's the fault of Italians,” Monti, who took over last month after former Premier Silvio Berlusconi resigned, told a news conference as he detailed the package yesterday. “Together, we will make it.” There will be an outcry though, over the fact that that the new package involves eliminating some pension privileges. “[Monti] also said that in solidarity with Italians making sacrifices, he would give up his salary as premier and finance minister.” It's a bold move by Monti, but these times call for brave politicians. Only time will tell if he is right. Sign up for a free subscription to the Weekly Radar - Benzinga's weekly newsletter highlighting technical levels and analysis for major markets for the week ahead.