Monti Sworn in as Italy's New PM

Italy`s new Prime Minister Mario Monti (2-L) with President Giorgio Napolitano (2-R) during the swearing-in ceremony of the new Italian government at the Quirinale Palace, the presidential palace in Rome, Italy, 16 November 2011.

Former EU Commissioner Mario Monti has been officially sworn in as Italy's new Prime Minister.

During the official ceremony at the presidential palace Wednesday, the economist promised to to be faithful to the country, to observe the constitution and to work for the interests of the nation.

Earlier on Wednesday, Monti formed a new technocratic government tasked to help the country avoid financial disaster.

The cabinet unveiled by Monti is constituted entirely of experts and includes no career politicians. That will make it easier to govern and will help calm political tensions in the country, the new Prime Minister commented, as cited by CNN.

It also emphasizes "that we are talking about an extraordinary moment, both because of the economic difficulties and because of the exasperated relations among the political forces," he added.

Corrado Passera, the CEO of Italy's biggest retail bank Intesa Sanpaolo, received the crucial infrastructure and industry portfolio.

Italy's new cabinet is expected to adopt measures to reboot the state's stagnant economy and to lower the country's massive EUR 1.9 T (USD 2.573 T) debt.

The austerity package for Italy plans for a balanced budget by 2014 through EUR 59.8 B in savings from a mix of spending cuts and tax increases. The plan foresees an increase in Value Added Tax (VAT), from 20% to 21%; a freeze on public-sector salaries until 2014; upping gradually retirement age for women in the private sector from 60 in 2014 until it reaches 65 in 2026, the same age as for men; strong measures against tax evasion, including a limit of EUR 2 500 euros on cash transactions, and special tax on the energy sector.

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