Public support for Italy's new prime minister Mario Monti has dropped since he unveiled a tough austerity package but remains above 60 percent, a new poll showed on Wednesday.
The survey by the IPSO organisation showed his overall approval rating had dropped to 64 percent, from 73 percent late last month before the details of the package, hitting pensions and raising property taxes, were known.
It comes as Monti, a former European Commissioner who formed a government of technocrats on Nov. 17, faces growing opposition to the 30 billion-euro ($40.3 billion) measures.
Monti said in a television interview on Tuesday night the package was vital to avoid the risk of Italy becoming insolvent and no longer being able to pay public sector salaries or pensions.
After dithering over their individual responses, Italy's main trade union confederations announced on Wednesday they would hold a national three-hour strike against the measures on Dec. 12.
Monti said he was confident Italians would see that sacrifices were necessary and the measures were fair. "I'm sure there will be protests, and I can even consider them justified, but I'm sure that citizens will understand," he said.
PAIN
The poll, taken for the Corriere della Sera newspaper, said 66 percent of Italians approved of the measures overall but a breakdown of the data showed they were divided over whether the pain was fairly distributed.
While 93 percent said they agreed with levies hitting the rich, such as new taxes on large pleasure boats, luxury cars and private planes, only 35 percent agreed with plans to reinstate a tax on primary residences.
While 82 percent agreed with plans to reduce funding for political parties and cut the costs of the administrative bureaucracy, only 30 percent approved of plans to increase VAT by two percentage points from September 2012.
Only 39 percent agreed with the pensions changes.
From the start of 2012 pensions will be calculated only on the basis of contributions paid into the system, rather than on end-of-career salaries. The minimum age for retirement was increased to 62 from 60 for women and to 66 from 65 for men.
One of the most controversial steps is the elimination of the annual inflation adjustment for those with monthly pensions of more than 936 euros.
Unions say this is too low and will hurt many people.
Welfare Minister Elsa Fornero has said she is willing to re-consider the de-indexation if parliament can come up with another way of finding the necessary savings.
The package foresees a 1.5 percent, one-off tax on the money brought back to Italy under the so-called "tax shield" amnesty.
The poll showed that 73 percent of Italians agreed with this measure in principle but unions and political parties backing Monti's technocrat government have called for the tax, which affects mostly the rich, to be at least doubled to 3 percent.
Monti has moved to head off any attempts to water down the package with amendments, saying the measures are "carefully weighed" and that Italy has little time to approve the plan.
The poll showed 70 percent of people agree with his measures against tax evasion.
They include a ban on cash transactions above 1,000 euros – down from the current 2,500 euros – the use of electronic payment methods in public administration, and tax breaks for small companies and artisans who declare their income.
