Italian gov't approves austerity budget to stabilize finance

20:47, May 26, 2010      

Email | Print | Subscribe | Comments | Forum 

The Italian government on Tuesday approved the 2011-2012 budget which heavily cuts down on public expenditures in a bid to stabilize the country's finance and sustain its weak economic revival.

Major cuts concern public administration costs, ministries' budgets and state employees whose salary growth is set to freeze for a three-year period.

The budget's goal is to raise a total of 24 billion euros (30 billion U.S. dollars) through a curb on public expenditures and increased revenues primarily deriving from a tougher crackdown on tax dodgers.

Italian Prime Minister Silvio Berlusconi and Economy Minister Giulio Tremonti met with the country's top trade unions and local regional authorities Monday, calling for a greater spirit of cooperation in such a hard moment when Europe was trying to cope with the Greek debt crisis.

Tremonti said that the budget was harsh and sacrifices were necessary from all parts if Italy wanted to reduce its dangerous debt level.

The Italian regions lamented the budget cuts, while the workers' unions were planning to organize a general strike in protest against the austerity policies.

The opposition has challenged to modify the budget when it goes to the parliament for approval.

Italy's financial maneuver is in line with Europe's emergency strategy following the Greek default.

Berlusconi met with the European Commission President Jose Manuel Barroso last Friday to discuss the urgency of shielding the euro zone's stability with a series of coordinated actions aimed at curbing public debts and spending levels of the European Union member states.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
  • An Indian artist colours clay idols of Goddess Durga for the upcoming Durga Puja festival in Calcutta, capital of eastern Indian state West Bengal on Sept. 27, 2011. The festival celebrates the homecoming of Mother Goddess Durga and the victory of good over evil, dramatized by the goddess' demolition of the evil buffalo demon, Mahishasura. (Xinhua/Tumpa Mondal)
  • A model presents a creation of new upcoming designer Sergei Grinko at the Milan Fashion Week Women's Wear Spring/Summer 2012 in Milan, northern Italy, Sept. 27, 2011. The Milan fashion week closed on Tuesday. (Xinhua/Wang Qingqin)
  • Yu Guangyao (2nd R), president of Shanghai Shentong Metro Co., Ltd, bows his apology at a press conference on the subway trains collision accident happened Tuesday afternoon, in east China's Shanghai Municipality, Sept. 27, 2011. By 8:30 p.m. (1230 GMT) Tuesday, a total of 271 injured people in the accident have received medical treatment in hospitals, among them 180 have been dispatched. Other 61 injured people are still in hospital, in which 30 are under emergency observations. No critical injuries have been reported. (Xinhua/Chen Fei)
  • Children visit the Confucian temple in Tainan, southeast China's Taiwan, Sept. 27, 2011. A ceremony will be held at the temple to commemorate Confucius (551-479 BC) on Sept. 28, the birthday of the ancient Chinese thinker and educationist and the annual Teacher's Day of Taiwan in honor of him. (Xinhua/Ren Zhenglai)
  • Fourth-grader Ma Lianghai (left) and third-grader Ma Linxiang are engrossed in their work during art class at Zhaojia Elementary School in Dongxiang, Gansu province, on Sept 18. (Photo by Xu Jingxing/China Daily)
Hot Forum Discussion