Thousands of protesters with banners and flags have converged on the center of Rome, protesting government cutbacks and reforms.

They are upset over labor reforms introduced by Prime Minister Mario Monti as part of new austerity measures to pay down the Italy’s debt and improve the country’s solvency.

Mr. Monti has promoted reforming the labor market to boost the economy, but critics say his plan will worsen the economy, especially for the middle class.

Italian official are negotiating with unions to repeal a more than 40-year-old labor statute, which requires employers to financially compensate and reinstate workers wrongfully dismissed.