Italy to still have gov't even if "No" wins referendum: Renzi

Italy will still have a government even in case of a "No" win at a Dec. 4 referendum on constitutional reform, Prime Minister Matteo Renzi said Monday.

"The Italian institutional system has many safeguards, and there will always be a government: political, technocratic, hyper-political, hyper-technocratic," he said.

"We'll do our utmost to make sure Italy is able to face its challenges," Renzi said, adding "Naturally, we believe the country will be stronger if Italy approves the institutional reform."

The 35-member Organization for Economic Cooperation and Development (OECD) appeared to back this up, saying the Italian government's constitutional reform law "will be a step forward in the reform process and will strengthen political and economic governance."

Italian lawmakers need to continue enacting structural reforms to "improve the standard of living of all Italians", it said in a November report out on Monday.

"If approved, (Matteo Renzi's) constitutional reform ... would improve the lawmaking process and clarify the division of jurisdictions between central and local powers," the OECD report said.

The overlap between jurisdictions is hampering both public and private investment, it said.

Last Friday, Renzi pointed out that a Constitutional Court ruling nixing part of his government's civil service reform law is an example of why his constitutional reform is needed.

"Our decree made misbehaving managers liable to getting fired, and the Constitutional Court called this illegitimate because regions' consent is required," Renzi said.

"And then they say I shouldn't change Title V (of the Constitution). We're surrounded by an oppressive bureaucracy," said the prime minister.

Title V of Italy's Constitution covers local government bodies, and would be amended under Renzi's reform. Endit