15Jul/110
Italy approves austerity budget
Italy's parliament on Friday gave final approval on Friday to a US$ 68-billion austerity budget aimed at slashing the country's deficit by 2014 and reassuring nervous financial markets. The wide-ranging plan includes deep cuts to regional subsidies, family tax benefits and top-tier pensions. Italy has been swept by uncertainty on the markets in recent days and the central bank warned that if high long-term borrowing rates persist this would have "considerable costs" for public finances and risks for the economy. The bank's report added that recent tensions in the 17-nation eurozone had "increased the urgency of proceeding with a consolidation of public finances" in order to "lower risk premiums and diminish long-term borrowing rates."