NZ approves dairy farms deal with China
The New Zealand government has approved the sale of 16 dairy farms to a company controlled by a wealthy Chinese businessman, Jiang Zhaobai. The company didn't reveal how much it is paying, but said it would invest more than US$ 164 million in the first two years. It said the deal would supply high quality diary products to China. But the deal has sparked local objections to the increasing foreign ownership of the country's key industries.
Germany approves bigger bailout fund
The German parliament has approved a more substantial eurozone bailout fund, in the latest move to tackle the debt crisis. The measure was passed with a big majority, although there was some opposition from within Chancellor Angela Merkel's ruling coalition. The proposal gives the fund more money and greater powers to help indebted member states such as Greece.
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."