"The Italian Senate on Thursday approved a crucial euro70 billion ($99 billion) austerity package aimed at convincing investors that the eurozone's third-largest economy won't be swept into the debt crisis.
The measures were passed 161-135 in a vote of confidence called by Premier Silvio Berlusconi's government.
Italy fast-tracked approval of the package, which is due for a final vote in the lower house of parliament on Friday, and increased its size after markets plummeted this week on worries over the country's financial stability.
The extent of investors' fears was apparent in a debt auction on Thursday, when Italy saw its borrowing rates hit a record high in a sale of euro4.96 billion ($7 billion) in 5- to 15-year bonds.
Italy is under pressure to show markets it can bring its accounts in order and promote growth, or risk being dragged into the debt crisis that has hit Greece, Ireland and Portugal.
Finance Minister Giulio Tremonti told the Senate that the austerity package, which was strenghened by reducing tax breaks in 2013 and 2014, seeks to balance the budget by 2014 and contains 16 measures to spur growth".............READ MORE
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