New Italy PM Enrico Letta to unveil programme for change

Italy's new Prime Minister Enrico Letta was set to unveil his coalition government's programme on Monday, under the watchful gaze of international markets and European partners.

The recession-hit country, which had been left effectively without a government for over two months by an inconclusive election in February, is under pressure to act fast to tackle social, economic and institutional ills.

Letta, who is expected to address parliament at 1300 GMT, has said he wants to move quickly to deal with the social fallout of the longest slump in 20 years by tackling unemployment figures at close to 12 percent - and higher among the young - and moving away from austerity imposed by his predecessor Mario Monti.

The European policy on austerity, he said last week, "is no longer enough."

Political observers will also be looking for key measures aimed at pulling the eurozone's third-largest economy out of a slump which has driven thousands of businesses into bankruptcy.

Letta has promised to renew confidence in the country's scandal-hit and feuding political institutions, but will be pushed hard to please all players.