Italy to adopt labour reform ahead of EU summit

(MILAN) - Italy's parliament will give the green light to a controversial labour market reform Wednesday so Prime Minister Mario Monti can go to a key summit in Brussels with it in hand, political parties said.

The reform, which Monti's government says is key to restarting growth in the recession-hit economy, has already been adopted by the Senate and will get final approval from parliament the day before the EU summit begins on June 28.

The government had called on parliament to make sure the reform is given the stamp of approval in time, "so that the European summit on June 28 can take note of the adoption of this important structural reform."

In exchange, it promised to tackle issues raised by Italy's parties, such as the problems faced by those who will find themselves without unemployment benefits or pensions because of the pension reform adopted last December.

The project was unveiled in March after months of bitter disputes with trade unions, which forced the government to compromise on some issues.

The reform is one of Monti's key projects, and aims to reduce precarious jobs and make it easier for firms to fire people.

The country's biggest union, the left-wing CGIL, still insists that the reform risks increasing unemployment, while Italy's Confindustria business association says it does not go far enough in strengthening employers' rights.