The letter has been written by Jean-Claude Trichet and Mario Draghi to the Italian Prime Minister, to discuss the situation in Italy's government bond markets. They suggest a pressing action by the Italian authorities to restore the confidence of investors. As an country in the Euro area, Italy has to respect its commitment, so the Italian Government has decided to pursue a balanced budget in 2014. It has recently introduced a fiscal package but it is not enough.

After the short introduction of the background, the purpose is advanced, supported by detailed, theoretical explanations and examples. They have considered three points as essential at the current juncture; in fact significant measures to enhance potential growth. Key challenges are to increase competition and to design regulatory and fiscal systems better suited. After that there is a list with all the measures to consider. There is the question  of earnings, of engagements and redundancies, of additional-corrective fiscal measures, of automatic deficit reducing clause.

All those points are vital. That is why Trichet and Draghi ask for a decree-law, followed by Parliamentary ratification by end September 2011.

In conclusion they encourage the government to immediately take measures to ensure a major overhaul of the public administration in order to improve administrative efficiency and business friendliness.