Italy's modest labour reform shows Renzi's momentum faltering


  • World
  • Thursday, 15 May 2014

Italian Prime Minister Matteo Renzi checks his tablet before a meeting with U.N. Secretary General Ban Ki-moon at Chigi palace in Rome May 7, 2014. REUTERS/Remo Casilli

ROME (Reuters) - Italy's chamber of deputies approved modest labour reforms on Thursday after a difficult passage through parliament, underlining the challenges facing Prime Minister Matteo Renzi in his pledge to overhaul the economy.

The changes make it easier for firms to use temporary workers, reversing attempts by former Prime Minister Mario Monti to reduce the "duality" of a labour market divided between highly protected permanent workers and a growing army of temporary staff with virtually no rights or benefits.

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