European debt crisis: Italy grapples with labor reforms

The Italian government is facing a citizen backlash for underestimating the number of citizens caught between work and retirement without welfare support. Meanwhile, European leaders are working on plans to save the euro.

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Leader of the New Democracy conservative party Antonis Samaras, left, meets with head of Greece's radical left-wing Syriza party Alexis Tsipras, in the Greek parliament, in Athens, on Monday, June 18, 2012. Samaras, who came first in Sunday's national election, said he will meet with leaders of all parties "that believe in Greece's European orientation and the euro" this afternoon in order to form a new coalition government.

Petros Giannakouris / AP

A coal miner tends to a burning barricade blocking a road next to the Santiago mine during a strike near Mieres, Oviedo, Spain, Monday, June 18, 2012. Spanish coal mining unions are waging a general strike as 8,000 mineworkers at over 40 coal mines in northern Spain continue their protests against government action to cut coal subsidies. (AP Photo/Emilio Morenatti)

Emilio Morenatti / AP

Leader of the New Democracy conservative party Antonis Samaras leaves an elections kiosk after speaking to his supporters at Syntagma square in Athens, Sunday, June 17, 2012. The pro-bailout New Democracy party came in first Sunday in Greece's national election, and its leader has proposed forming a pro-euro coalition government.

Petros Karadjias / AP

People vote inside booths during the elections in Thessaloniki, Sunday, June 17, 2012. Greeks voted Sunday for the second time in six weeks in what was arguably their country's most critical election in 40 years, with the country's treasured place within the European Union's joint currency in the balance. (AP Photo/Nikolas Giakoumidis)

Nikolas Giakoumidis / AP

Demonstrators protesting against Italian premier Mario Monti's labor reforms clash with police as Monti participates in a meeting in Bologna, Italy, Saturday, June 16, 2012. Tens of thousands of Italian workers rallied peacefully in Rome on Saturday to protest pension cuts, tax hikes and labor reforms imposed by the government of Mario Monti and to demand more stable work, particularly for the young. The demonstration organized by Italy's main labor unions came a day after Monti's latest effort to stave off contagion from Europe's debt crisis. His Cabinet on Friday approved measures worth euro 80 billion ($100 billion) to spur economic growth, streamline the notoriously bloated public sector and lower the national debt.

Gianfilippo Oggioni / AP

Italy's Prime Minister Mario Monti gives a speech at the European School of Management and Technology (ESMT) in Berlin on June 13, 2012 before receiving a leadership prize presented by German Finance Minister. German Finance Minister Wolfgang Schaeuble told today's edition of Italian daily La Stampa that "if Italy continues on the path Monti has set out on", there will be no danger of Italy succumbing to the debt crisis.

JOHN MACDOUGALL / AFP/GETTY IMAGES

June 11, 2012

Miners walk next to burning tires as they block a road during a protest in Cinera, near Leon, Spain. Strikes, road blockades, and mine sit-ins continue as 8,000 mineworkers at more than 40 coal mines in northern Spain continue their protests against government action to cut coal subsidies.

Juan Manuel Serrano / AP

June 11, 2012

A visitor points toward the Madrid Stock Exchange's main display. After Spain's request for a European financial lifeline of up to a 100 billion euros ($125 billion) to save its banks, the European Union made clear the money is more than just a loan. Besides being paid back with interest, there will be strings attached for the Spanish government.

Daniel Ochoa de Olza / AP

June 10, 2012

Spain's Prime Minister Mariano Rajoy speaks during a news conference at the Moncloa Palace, in Madrid. Spain's grinding financial misery will get worse this year despite the country's request for a 100-billion-euro bailout to save its banks, Rajoy said.

Daniel Ochoa de Olza / AP

June 10, 2012

Demonstrators bang pots during a protest against the financial crisis and the latest government economic measures in Sol square in Madrid on June 10, 2012. One out of every four Spaniards is unemployed as the country becomes the fourth and largest of the 17 countries that use Europe's common currency to request a bailout.

Daniel Ochoa de Olza / AP

June 7, 2012

A coal miner fires a slingshot during confrontations with the Civil Guard after the miners blocked a key highway in Cinera, Spain on June 7, 2012. Strikes and road blockades in northern Spain are a protest against government action to cut coal subsidies.

Javier Bauluz / AP

June 4, 2012

People line up outside an unemployment registry office in Madrid. The Labor Ministry reported a drop of 30,313 people claiming benefits, to a total of 4.71 million unemployed people in May.

Alberto Di Lolli / AP

June 4, 2012

Miners on strike throw tires over a highway guard rail to build a barricade in Vega del Rey, Spain. Strikes, road blockades, and mine sit-ins continue as 8,000 mineworkers at over 40 coal mines in northern Spain continue their protests against government action to cut coal subsidies.

Juan Manuel Serrano Arce / AP

June 2, 2012

A demonstrator shows a fake 50-euro note during a demonstration next to a branch of Bankia in Barcelona. Spain's prime minister said the nation will stick to harsh austerity measures until it emerges from financial crisis.

Emilio Morenatti / AP

June 2, 2012

Demonstrators speak out against the government during a protest in Barcelona.

Emilio Morenatti / AP

May 30, 2012

Firefighters employed on short-term contracts demand longer contracts during a protest in front of the Athens Academy.

Thanassis Stavrakis / AP

May 28, 2012

A broker stands near the main display at the Stock Exchange in Madrid. Shares in Spanish bank Bankia, one of the banks hardest hit by Spain's real estate collapse over the past four years, fell 28 percent on opening in Madrid in May on the bank's first day back on the stock exchange after an announcement that it would need a $23.8 billion bailout to bolster its defenses.

Daniel Ochoa de Olza / AP

May 23, 2012

French President Francois Hollande talks with German Chancellor Angela Merkel before the start of an E.U. summit in Brussels. The leaders of the 27 countries that make up the European Union were meeting to try to find a way to keep the debt crisis in Europe from spiraling out of control.

Yves Logghe / AP

May 22, 2012

Job seekers line up outside an employment center in Sintra, Portugal. The country's jobless rate rose to a new euro-era record in the three months through March as its economy contracted for a sixth quarter.

Mario Proenca / Bloomberg

May 22, 2012

Students take to the streets of Barcelona to protest education cuts.

Manu Fernandez / AP

May 7, 2012

Newspapers outside a street kiosk follow the parliamentary elections in Athens. As voters across Europe rebel against austerity measures imposed to stamp out the debt crisis, Citigroup said today that the risk of Greece leaving the euro by the end of 2013 has risen as high as 75 percent.

Simon Dawson / Bloomberg

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