Monti says next few weeks 'decisive' for crisis Government still managing emergency, says premier

(See related stories) (ANSA) - Rome, May 16 - Premier Mario Monti said on Wednesday that the next few weeks will be crucial for Italy and Europe's hopes of emerging from the eurozone debt crisis.



The pressure on Italy's bonds and stocks that caused Silvio Berlusconi to resign as premier in November had eased earlier this year after Monti's government passed a tough austerity package of spending cuts and tax hikes.



But the pressure on Italy and the eurozone as a whole has returned in a big way over the last 10 days after political uncertainty in default-threatened Greece reignited fears for the future of the single currency. Monti added that now is "not the time to loosen the grip" on reforms in Italy, stressing that "the next few weeks will be decisive for the future of our country and the European Union".



The premier has focused on trying to stimulate growth with structural economic reforms after the austerity package was approved in December but said his administration was still very much on emergency-management mode.



"If for phase one (of my government) we are talking about managing a crisis that still entails emergency elements, then we are still fully in stage one," he said.



"That's what we see in Europe and in Greece and on the agenda of (this weekend's) G8 summit at Camp David, where the main concern is the eurozone economy".



On Tuesday Monti and United States President Barack Obama agreed on the need for the European Union to do more to boost economic growth before the G8 summit.



"(Obama and Monti) discussed the current economic situation in Europe and agreed on the need to intensify efforts to promote growth and job creation," the White House said in a statement after the leaders spoke via telephone.