The text I’m going to analyse is a letter from the Governing Council of the European Central Bank, in particular from Jean Claude Trichet and Mario Draghi, to the Italian Prime Minister Silvio Berlusconi.

The first paragraph is an introduction where the senders point out the reason for writing. Considering the Italian government bond market the Governing Council shows the necessity of action by Italian Authority in order to restore the confidence of investors.

In the second paragraph the senders require Italy to underpin its fiscal sustainability and structural reforms. They add that the steps taken up to nowadays are not enough to guarantee a balanced budget in 2014.

Paragraph three shows a list of urgent needs. Firstly an increase in competition is needed starting from the public service quality, regulation and a fiscal system more suitable to support firm’s competitiveness and the efficiency of labour market. Furthermore the collective wage bargaining system must be reformed, too.

The rules of hiring and dismissing employees must be reviewed as the establishment of an employment insurance system. Last but not least resources must be reallocated in order to re-establish more competitive firms and sectors.

Secondly the public finance must be ensured by bold and immediate measures such as to reduce the cost of public employees, to review the retirement age for woman in the private sector and the borrow method should be led in tight control.

The senders highlight a deadline which is the end of September2011. 

Thirdly Trichet and Draghi warn the Prime Minister to immediately take measures to overhaul public administration such as to improve administrative efficiency and business friendliness, to examine performance indicators (health, education and judiciary systems) and to consolidate administrative layers. Last but not least they suggest to exploit economies of scale in local and public services.

In conclusion the senders warn the Prime Minister that gaining trust from population in government will improve the situation.