Vocabulary

to discuss on = discutere riguardo a qualcosa

to underpin = sostenere

to pursue = perseguire

to this purpose = a questo scopo

to enhance = favorire

to move in a direction = muoversi verso una certa direzione

to be under discussion = essere argomento di discussione

decisively = in modo deciso

to challenge = sfidare

to be suited to = essere adatto a

labour market = mercato del lavoro

to apply = applicare, applicarsi in qualcosa

need to further smthg = bisogno ulteriore di qualcosa

to tailor = tagliare su misura

with respect = rispettando

trade union = sindacato

thorough = complessivo

to hire = prendere in prestito

to dismiss = licenziare

to employ = impiegare

employees = impiegati

unemployment = disoccupazione

set = gamma

capable = capace

reallocation = ridistribuzione

to take measures = prendere misure

to ensure = assicurare

to frontload = anticipare

to achieve = raggiungere, ottenere

to be aim to = essere finalizzato a qualcosa

eligibility criteria = condizioni di partecipazione

retirement age = età di pensionamento

thereby = laddove

to strenghten = rafforzare

turnover = ricambio

clause = clausola

slippages = slittamenti

discretionary expenditures = spese discrezionali

regional and local governments = province

to borrow = prendere a prestito

to land = dare a prestito

in line with smthg= coerenti con qualcosa

to be ongoing = essere in corso di svolgimento

to renard as crucial = considerare importante

above = sopra senza contatto

decree-law = decreto legge

ratification = ratifica

to tighten = stringere

overhaul = revisione

in order to = al fine di

to improve = migliorare

layer = strato

to exploit = sfruttare

politicians = uomini di politica

politics = scienza della politica

policy = politica perseguita

 

 

Structural Analysis

The text is a formal letter sent by Jean Claude Trichet and Mario Draghi, two of the members of the Governing Council of the European Central Bank, to the Italian Prime Minister on 5 August 2011.

The writers use the 1^st paragraph as an introduction, giving reason for writing and some background notes about the Italian government bond markets’ situation.

In the 2^nd paragraph they discuss on the Government Summit of 21 July 2011 and they underline the Italy’s need to underpin the standing of its sovereign signature and its engagement to fiscal sustainability and structural reforms.

All the 3^rd paragraph deals with a list of urgent needs for Italy; every explanation develops in points a to c, in order to make clear the measures to be taken. The first need is to increase competition and to better design  regulatory and fiscal system to support firms’ competitiveness and labour market efficiency. To these purposes is needed reform strategy, further reform the collective wage bargaining system and review rules regulating the hiring and dismissal of employees. The second need for the government is to take immediate and bold measures to ensuring the sustainability of the public finances. The interventions are to take corrective fiscal measures, to frontload the measures adopted in the July 2011 package by at least one year, to intervene in pension system making more stringent the eligibility criteria for senior persons and aligning the retirement age of women in the private sector, to reduce the cost of public employees and, if necessary, reduce wages. In addiction is needed to introduce an automatic deficit reducing clause and place under tight control borrowing and expenditures of regional and local governments.

Trichet and Draghi regard as crucial that all allocations listed  be taken as soon as possible by decree-law. They also encourage the government to take measures to ensure a major overhaul of the public administration and to strengthen actions aimed at exploiting economies of scale in public services.

The writers use a very direct and explicit language because Italian government has to understand the importance of taking urgent measures to restore the severity of the current financial market situation.