World is watching Italy's labour reforms, says Monti Govt faces opposition to plans to make firing easier

(see related stories) (ANSA) - Rome, March 30 - The progress of Italy's contentious labour-market reforms is being keenly watched outside the country, Premier Mario Monti said on Friday.Italy has moved out of the centre of the eurozone crisis after Monti's emergency administration of non-political technocrats passed an austerity package and structural measures, such as liberalisations in the service sector and pension reform.But former European commissioner Monti suggested Friday that parliament needed to approve his government's labour reforms without watering them down in order to maintain the credibility gained with investors and international leaders."I have seen that abroad, especially in Japan, they are waiting to see the outcome of the fourth big group of reforms after the consolidation of the public finances, pension reforms and liberalisations," Monti said in Tokyo during a visit to the Far East."There is a lot of attention on the proposal the government has made to reform the labour market and people are waiting to see what will happen in parliament". One of the three main political parties backing Monti, the centre-left Democratic Party, and Italy's biggest union, the leftwing CGIL, are demanding changes to the measures that will make it possible for firms to dismiss workers if they have economic grounds to do so.The government says this measure is necessary as companies are reluctant to hire people on regular contracts at the moment because it is so hard to dismiss them.It says the reform, which also includes new benefits for people out of work, will boost productivity and growth and make it easier for young people and women to find jobs. Monti added that there is "a strong residue of concern about the eurozone" around the world, with the situation of Spain now causing fears of contagion to other European countries.