President Giorgio Napolitano on Tuesday said that reforms "can no longer be avoided" in Italy.
In a wide-ranging holiday message, the president added that while there are signs that in 2015 and 2016, the recession-battered economy may begin to recover and employment rise, that may not happen if government and parliament cannot cooperate on essential reforms.
Napolitano, who many expect will resign early in the new year, praised the "hard work" of Italian senators and members of parliament but insisted they must abandon the present "climate steeped in negativity".
Instead, he said they must work together and share a commitment to "overcoming the most critical economic and social situation" seen in many years in Italy.
He added that 2014 was "not the usual year" for Italy, due to the economic crisis that has created social strains.
In the face of such difficulties, and a "malaise" that has developed between workers and companies, the president called on unions to work "constructively" with the government.
Napolitano urged "dialogue on issues of vital importance". Unions and the Italian government have clashed over labour market reforms and budget measures, culminating in a national general strike last week called by two of Italy's largest trade union federations.
Napolitano also praised Premier Matteo Renzi's work in the rotating presidency of the European Union, a six-month term that ends in early January.
Italy's efforts on the EU stage have been "effective" on behalf of the European Union and have led to greater financial security for the 28 EU member States.
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