Millions of Italians strike over economic policies

ITALY: Millions of Italians stopped work yesterday in protest at the economic policies of Mr Silvio Berlusconi's government.

ITALY: Millions of Italians stopped work yesterday in protest at the economic policies of Mr Silvio Berlusconi's government.

A nationwide half-day stoppage crippled public transport and shut factories and banks. Alitalia cancelled more than 100 flights.

Government departments and post offices were shut all day. Doctors and nurse also staged an eight-hour strike, though emergency services were maintained.

The action was originally called by the main trade union federations, and backed by the opposition, to protest at an austerity budget for 2005 that imposes sacrifices worth €24 billion in the form of spending cuts and additional levies.

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But last Saturday Mr Berlusconi wrong-footed critics by persuading his ministers to agree to €6.5 billion of tax cuts - a measure polls suggest has given his popularity ratings a much-needed, if so far modest, fillip.

The weather yesterday worked against the opposition. Most of the 70-odd demonstrations around the country organised by the trades union federations took place in driving rain.

Mr Berlusconi was voted into office largely because Italians believed he could bring his Midas touch to bear on Italy's sclerotic economy. Three years on, and despite reforms of the pension system and the labour market, Italy still has one of the lowest growth rates in Europe.