Italy’s new technocratic government approved tough austerity measures and economic reforms last night, kick-starting a pivotal week in Europe’s campaign to shore up the single currency.
The new tax increases and spending cuts, reported to total €20bn ($26.7bn), more than 1 per cent of national income, are designed to balance Italy’s books by 2013.
They mark the first element of a sequence of choreographed steps that Europe’s leaders hope will build into a convincing resolution to the sovereign debt crisis at their summit on Friday.
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