US conglomerate General Electric Co has agreed to buy the aviation business of Italy's Avio for $4.3 billion, in a sign of confidence about the country's underlying strength despite its deep recession. The deal comes as Europe's fourth-biggest economy labours to become more competitive under a reform agenda set by technocrat Prime Minister Mario Monti, who is due to step down on Friday before general elections seen in February.

"We are convinced that Italy will exit the crisis," Nani Beccalli, president and chief executive of GE Europe, told reporters on Friday.

Copyright Reuters, 2012