Italian accord

(First Edition)

The Italian government is hoping for a swift upturn in the country's economic fortunes following a landmark labour agreement announced here at the weekend, AFP reports from Rome.

The accord on salaries, which comes a year after the government ended the automatic linking of wage increases to inflation, aims to give Italian industry greater flexibility over staffing levels and pay. It still has to be formally ratified by the three main unions before being signed on 22 July.