Italian Senate approves austerity package

[News_Editor]

Italian Senate approves austerity package

2011-07-14 23:03:43 GMT+7 (ICT)

ROME (BNO NEWS) -- The Italian Senate on Thursday passed an austerity package designed to balance the budget by 2014 and protect Italy from a debt crisis. It now awaits approval from the lower house.

According to Adnkronos International, the measure passed 161 to 135 in a confidence vote. The contingency package is now expected to receive a final approval from the lower house on Friday.

The plan includes cuts of 48 billion euros ($67 billion) over three years to balance the budget in 2014 and make financing of Italy's 1.8 trillion euros ($2.5 trillion) debt more sustainable.

"Without a balanced budget the public debt will devour our future and the future of our children," said Finance Minister Giulio Tremonti, speaking to the Senate before the vote. With Italy's debt at nearly 120 percent of GDP, investors are worried that the euro zone's third richest country will be swept into the debt crisis.

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