Italian Prime Minister Romano Prodi makes his first speech as the country's leader to the Senate in Rome May 18, 2006. (Xinhua/Reuters)

ROME, May 18 (Xinhua) -- Italy's new Premier Romano Prodi outlined his government's program on Thursday, promising to "shakeup" the country and reverse the policies of his predecessor SilvioBerlusconi.

    In an inaugural speech to the Senate ahead of a crucial confidence vote on Friday, Prodi said Italy needed a "strong jolt"to revive it morally, socially and economically.

    "The country is blocked ... we must restore enthusiasm ...we all want Italy to start winning again," said the former European Commission chief, whose government was sworn into office on Wednesday.

    Prodi told senators that Italy was in a "critical state", urging the center-right opposition to do its bit to set the country back on its feet.

    The premier won the narrowest margin of victories against Berlusconi in the April general election following a campaign seenas the most acrimonious in postwar Italian history.

    Berlusconi refused to concede defeat, even after the Supreme Court confirmed Prodi's win following a review of disputed ballots.

    He has vowed to exploit Prodi's weak parliamentary majority andbattle the government at every possible turn.

    But Prodi insisted there was room for "constructive dialogue" and "agreement" with the opposition, asking that the country's interests prevail over political divisions.

    The premier focused on what he termed Italy's "ethical crisis",pledging to clean up the corruption he implied was widespread in society.

    He stressed he would clamp down on "cunning" tax dodgers in particular, branding tax evasion a "pathological evil".

    Italy's underground economy is believed to equal almost 30 percent of the country's GDP, a figure which Prodi said was without comparison in the Western world.

    Prodi went on to talk about the country's stalled economy and his proposals for kick-starting growth and consolidating deteriorating public accounts.

    Over the past five years, Italian GDP growth has averaged less than 0.7 percent a year while the country's debt mountain - the third biggest in the world - is on the rise again and has been forecast to hit 107.4 percent of GDP this year.

    Prodi said his cure included a 5 percent cut in payroll taxes and social security contributions paid by businesses and workers; greater market liberalization; more investment in research, development and infrastructure; and the promotion of stable employment rather than short-term contracts which he said created an "unacceptable level of precariousness".

    The premier also promised "tough" new conflict of interest legislation and a reform of media regulatory bodies.

    Such reforms would be firmly opposed by Berlusconi, a billionaire media magnate who was dogged by conflict of interest accusations.

    The opposition said Prodi's parliamentary majority was far too weak to push through his ambitious reform agenda.

    Prodi has a relatively strong hold over the Lower House but a majority of only two seats in the Senate. Enditem