Austerity package passed by Senate to House
25-billion-euro measure wins confidence vote
15 July, 11:48
(ANSA) - Rome, July 15 - The Italian Senate on Thursday
approved a 25-billion-euro austerity package aimed at bringing
Italy's budget within eurozone fiscal parameters.The package sets out to trim Italy's budget deficit, which was 5.3% of GDP in 2009, back to 5% in 2010, 3.9% in 2011 and 2.7% in 2012.
It was approved in a Senate confidence vote by 170 votes to 136. The two-year-package of spending cuts will start its way through the House on July 26. It is expected to gain final approval before the August recess.
Economy Minister Giulio Tremonti, the architect of the package, has called it "a necessity".
Shortly before the vote, Bank of Italy Governor Mario Draghi hailed the pace at which the government is pushing the package through parliament.
"Moving fast was inevitable," he said, referring to possible spculation in the wake of the Greece debt crisis.
"A sharp correction in course was needed".
"We will only see in the coming months whether it will enables its goals to be reached".
Regional governors reiterated their opposition with the head of their association, Vasco Errani, saying: "The cuts are unbalanced and we won't stop working to change (the package)". The opposition Democratic Party opposes the package and is set to stage nationwide demonstrations on Friday and Saturday.
The austerity plans have already sparked protests by public-sector workers, diplomats, subsidised theatres, short-term workers, students, magistrates and pensioners.
Despite a high-profile clash with regional governors, Economy Minister Giulio Tremonti has refused to budge on 8.5 billion euros' worth of cuts to regional funds.
Fines for exceeding European Union milk quotas have been put off until the end of the year at the insistence of a key government ally, the Northern League.
The package contains a norm that will raise the retirement age for women in the public sector from 60 to 65 next year.
Other measures include a 10% cut to ministerial budgets and perks such as limousines.
Ministers and undersecretaries who are not members of parliament will also take a 10% pay cut.
There will be a two-year public sector pay freeze while public-sector managers will have their salaries trimmed by 5% above 50,000 euros and by 10% above 150,000 euros.
The price of off-patent prescription drugs will move into line with the European Union average by 2011.
The package also contains new norms against tax evasion and unregistered homes. On Tuesday the package secured the approval of European Union financial and economic ministers.
The ECOFIN meeting agreed that the budget "met the recommendations" recently issued by the European Commission.
photo: Tremonti
