Yes, they really believe that the answer to the recession is, at least in Italy, liberalization of the labor market. In an article previously titled "Italian Business Potential Thwarted as Crisis Persists," Liz Alderman describes a microcosm to justify new labor laws that make firing employees easier in Italy:
"In Ms. Pallini’s own factory, an employee suspected of stealing had to be watched for two years before being caught in the act. Videotape that had captured his thefts was not admissible in court, so her father and two employees had to spend countless hours gathering watertight evidence to ensure that judges would not eventually reinstate the man. By contrast, a private sector employer in the United States could have terminated the worker as soon as a theft was detected, unless a union contract was involved or antidiscrimination laws were violated." Source
Dean at the Center for Economic and Policy Research missed the point by focusing on a polemic about how accurate it was to say that US businesses can fire workers after theft is "detected":
"Actually, a private sector employer can terminate a worker who it thinks is stealing, even if they never caught the worker. In fact, they can fire the worker just because they think they are the type of person who might steal or just because they don't like him or her. Workers who are not protected by union contracts or civil service guidelines can be fired any time for any reason that does not violate anti-discrimination laws." Source
Of course, he is right about that point, but its a rather narrow argument to make and it doesn't even start to address the real problems that created and are perpetuating the crisis.