Monti reaches deal to pass labour reform before EU summit Premier promises concessions to major parties

(ANSA) - Rome, June 21 - Premier Mario Monti has reached an agreement with the main parties supporting his emergency government to have a controversial labour-reform package approved in parliament before next week's European Union summit on the eurozone crisis.

Former premier Silvio Berlusconi's People of Freedom (PdL) party had asked for the package to be modified to give firms more contractual flexibility when taking on staff.



The centre-left Democratic Party requested that the government help up to 390,000 people who have found themselves without a job and without a pension following changes to Italy's pension system approved in December.



Monti agreed to address both issues after fast approval of the labour reform.



The government had already watered down the package's most controversial measure, which makes it easier for firms to fire workers, after objections from the PD and Italy's trade unions.



But Monti says the reform is still a significant step forward in giving companies more power to dismiss staff, which he claims will boost productivity and cut unemployment as it will actually make firms more inclined to hire workers.