Now it moves to parliament for approval. Italy is certainly one of the countries that is keeping some awake at night during this economic crisis. Most of the new plan will kick in after the next Italian elections in 2013. Interesting how that works.
The Italian government has approved an austerity package aimed at shielding the country from the Greek debt crisis and eliminating the budget deficit in 2014.
The package, drafted by Giulio Tremonti, the finance minister, contains $66.7bn of deficit cuts to balance the budget in 2014.
It will trim the budgets of central government ministries and local authorities and reduce tax breaks for companies and families.
However, parliament must approve it within 60 days.
The austerity sweep has heightened tensions within the centre-right coalition of Silvio Berlusconi, the prime minister, and his restive Northern League ally has warned that the government is at risk until the package is passed.
