>> A sigh of relief for Italy's new government. The country's constitutional court rejecting a bid by Italy's largest labor union to hold a referendum on part of a jobs market reform that made it easier to fire workers. When Prime Minister Paolo Gentiloni took office in December, he pledged to continue the work started by his predecessor, Matteo Renzi.
His 2015 jobs act and constitutional reform were flagship projects in an attempt to revive the Eurozone's own sluggish economy. In Rome, Reuter's correspondent Gavin Jones says unbalance is good news for Italy.>> This labor reform made firing easier. It was a partial reform, it didn't affect the public sector.
It only affected new hires, it didn't affect anyone who already had a contract. There's not a lot of evidence that it's really helped create jobs, or helped create stable jobs. But having said all that, it was some signal that Italy can pass reforms. Italy did have a very rigid labor market in some aspects.
And it would a step towards making that labor market less rigid.>> Big businesses had welcomed the labor reform, which scrapped a rule that gave people fired from large private sector companies the right to be rehired. The CGIL Union, which rallied against most aspects of the reform from the start, asked the court to approve a vote on reintroducing the rule and extending it to smaller companies.
Italy has one of the lowest numbers of people in work in the Eurozone. Almost 40% of 15 to 24 year olds are unemployed. Renzi hoped that making firing easier would prompt firms to hire, but there's been no boost to the labor market just yet.