Italian parliament adopts draconian austerity budget - approved the 48-billion-euro ($68 billion) austerity package aimed at averting a full-blown financial crisis

Italian parliament adopts draconian austerity budget

A euro coin superimposed over the Italian flag
Italy has moved swiftly to stem market concerns
The Italian parliament on Friday gave the green light to a draconian austerity budget designed to cut the country’s soaring deficit by 2014 and reassure nervous financial markets.


Italian Prime Minister Silvio Berlusconi kept out of the spotlight as parliament in Rome approved the 48-billion-euro ($68 billion) austerity package aimed at averting a full-blown financial crisis.

But it was Berlusconi who had accelerated the adoption of the plan to signal to financial markets that the world's eighth largest economy was serious about staying out of the debt crisis engulfing Europe.

Italy's lower house of parliament passed the measure by 316 votes to 284, after the Senate, or upper house, approved the bill on Thursday by an equally narrow margin of 161 to 135.

Aware of the gravity of the situation, the country's center-left opposition, which opposed much of the package, refrained from delaying the parliamentary process following repeated appeals in the past week by Economic Minister Giulio Tremonti to rally around the austerity measures. Italy's national debt is more than 1.8 trillion eurosItaly's national debt is the second highest in the eurozone

Agreement reached in record time

In what business daily Il Sole 24 Ore called an "absolute first," the government and opposition parties set aside differences to pass the austerity measures in a matter of days.

The rapid political accord helped calm the massive sell-off of Italian assets at the start of this week, but yields on Italian 10-year government bonds before the vote climbed to about 5.7 percent and spreads over benchmark German bonds rose above 300 points.

The austerity measures call for cutting the deficit to 0.2 percent of Gross Domestic Product by 2014, from 4.6 percent last year, and include curbs in spending for things like hospital fees and other public services. Italy has one of the world's highest public debts at 120 percent of GDP.

Italy's central bank governor and president-elect of the European Central Bank, Mario Draghi, has warned however that the measures now adopted need to be supported by structural reforms to the economy to stimulate growth.

Analysts have also warned that Italy's stagnant economy and tensions within Prime Minister Berluscioni's coalition government are potential risks, but have dismissed the prospect of the country requiring a bailout.

Author: Gregg Benzow, David Levitz (dpa, AFP, dapd, Reuters)
Editor: Andreas Illmer


Italy's lower house of parliament has approved a three year, $67bn austerity package in a rushed vote to try to calm the financial market storm which has sent Italian borrowing costs soaring.

The lower house voted 314 in favour and 280 against the motion on Friday, which hours ealier had passed in a confidence vote.


The mix of spending cuts and tax measures is aimed at protecting Italy from a full scale financial crisis and ensuring the government reaches its target of balancing the budget by 2014, and was approved by the Italian senate the day before.

The bill passed through parliament with unusual speed after opposition members said it would not hold up the package with delaying tactics because of the risk that financial markets could spiral out of control.

The austerity budget is intended to stave off Greek-style financial collapse, which Greeks have responded to with intense demonstrations.


James Austin of the American University in Rome discusses Italy's debt crisis and austerity measures

Italy's upper house, the senate, has already approved the measures, which advocates say are necessary for the financial health of the eurozone's third largest economy.

The austerity budget will amount to large public service cuts, while the government will sell off their stakes in state-owned companies.

Italy is the third largest economy in the eurozone, but Al Jazeera's Sonia Gallego says Italians are unhappy with the austerity measures and the hardships that will follow.

"Frankly, there is a lot of bitterness," she said.


"They feel that it [the financial crisis] is due to bad governance," and that they should not be held accountable for government folly.

But our correspondent also said there was a general consensus among politicians that austerity measures were necessary.

Italy raised 2.97bn euros ($4.2bn) on Thursday by selling 15-year government bonds, but the country is under pressure from the International Monetary Fund (IMF) to ensure a "decisive implementation" of spending cuts.

"No one writes a budget such as this without wanting the common good," Guilio Tremonti, the Italian finance minister, told Al Jazeera.

"They're looking at the government, both the majority and the opposition, who often differ. But we are not divided now."



Views: 111

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

cheeki kea commented on Sandy's photo
Thumbnail

FB_IMG_1711502430662

"( sadly ) The unvaccinated sportsman or woman has an ( unfair ) advantage on the field or water…"
21 minutes ago
cheeki kea favorited Sandy's photo
50 minutes ago
cheeki kea commented on Doc Vega's blog post Was Sabotage or Terrorism used in the Collapse of the Francis Scott Key Bridge?
" Oh Wow Terrorism!/sabotage? Are you sure you want to know more prey tell. Could be a rabbit…"
1 hour ago
Less Prone commented on Doc Vega's blog post Was Sabotage or Terrorism used in the Collapse of the Francis Scott Key Bridge?
"Perfect for destroying the supply chain. It could well have been intentional."
16 hours ago
Less Prone favorited Doc Vega's blog post Was Sabotage or Terrorism used in the Collapse of the Francis Scott Key Bridge?
16 hours ago
Doc Vega posted blog posts
18 hours ago
rlionhearted_3 posted photos
21 hours ago
rlionhearted_3 favorited Doc Vega's photo
21 hours ago
tjdavis posted a video

Alabama’s Biggest Secret - Operation Paperclip 🇺🇸

In the north of Alabama is the city of Huntsville. It's here where German scientists built NASA in secrecy after World War II. Operation Paperclip is still s...
yesterday
tjdavis posted a photo
yesterday
Doc Vega commented on Doc Vega's blog post Americans You’re Being Squeezed Out!
"Cheeki kea always nice to her you chime in and you're damn right! "
yesterday
Doc Vega commented on Doc Vega's blog post Americans You’re Being Squeezed Out!
"Les Prone thanks for your support Dude! "
yesterday
Doc Vega posted a photo

The inconvenient truth

Trump spells it out!
yesterday
Sandy posted a photo
Wednesday
Less Prone favorited Doc Vega's blog post What Made the Founding Fathers of America so Brilliant?
Tuesday
Less Prone commented on Doc Vega's blog post Why didn't the Archeological World Announce Proof that Jesus Lived?
"Motives of Joe, to shit in the well by showing totally irrelevant proof?"
Tuesday
Doc Vega commented on Doc Vega's blog post Why didn't the Archeological World Announce Proof that Jesus Lived?
"Less, Motives of Wyatt or Joe? What archeologist wouldn't want proof of Jesus as part of his…"
Tuesday
Doc Vega commented on Doc Vega's blog post Why didn't the Archeological World Announce Proof that Jesus Lived?
"Less Prone, Considering Joe Rogan to be the gatekeeper of anything is just short of ridiculous the…"
Tuesday
Doc Vega posted a blog post
Tuesday
MAC posted a video

Don't Go To Hong Kong Now (Even on Connecting Flights)

Secure your privacy with Surfshark! Enter coupon code laowhy86 for an extra 3 months free at https://Surfshark.deals/laowhy86Article 23 in Hong Kong is real,...
Tuesday

© 2024   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted