Remember Biden's Failed $230M Humanitarian Pier in Gaza? Well...
One Blow Against Censorship - a University 'Misinformation’ Outfit Is Disbanded After Inve...
Actually, Senator
Former Obama Fundraiser Ditches Dems to Back Trump
GOP Has 'Evidence of Illegal Immigrants Voting' Amid Biden's Border Crisis
Democrats Are Working Hard to Try and Fool Voters Into Thinking Biden's Age...
Illegal Alien Crossings Increase Despite Biden's Executive Order
Kamala Harris Sure Looks to Be Obsessed With Pride Month
Lawmakers in This State Passed Legislation Defying on Parental Rights
Axios Headline Highlights Troubling News for Biden Campaign
A Semi Driver Accused of Causing Fatal Crash Is an Illegal Immigrant
Biden Lays Down Illegal Alien Relief Just After His Border Crackdown Order
Democrats and Their Allies Sure Are Increasing Their Attacks on SCOTUS
Surreal Gaslighting: Team Biden and 'News' Media Collude on Insulting 'Cheap Fakes' Lie
John McGuire Is Claiming Victory, but Bob Good Isn't Giving Up in Too...
Tipsheet

Italy Approves Austerity Measures (Minus the Anarchic Riots)

In order to avoid becoming further embroiled in the debt crises sweeping the euro zone, the Italian government on Friday approved legislation entailing $65 billion of emergency austerity measures. The plan includes various tax increases as well as entitlement reforms in an ambitious effort to close Italy's deficit gap, from a projected 3.9 percent of gross domestic product this year to a balanced zero by 2013. Italy currently has the second largest debt in the euro zone, standing at 120 percent of GDP, prompting this move towards fiscal sanity - and so far, it seems, the Italians are taking it reasonably well (unlike the Greeks earlier this summer).

Advertisement

The plan will raise the capital gains tax, increase levies on the highest earners, cut government spending and reduce funding to regional administrations. The plan was passed last night in Rome by decree, meaning it will take effect immediately and then must be approved by parliament within 60 days.

"Our heart is bleeding as we have always maintained that we wouldn't put our hands in the pockets of Italians, but the international scenario has deeply changed," Berlusconi said after the meeting. "The measures go in the direction that the ECB wanted."

The European Central Bank had asked Italy to make additional budget cuts before it would buy the nation's debt on the market in a bid to arrest surging borrowing costs. Yields on Italy's 10-year bond have plunged 105 basis points since the ECB started the purchases on Aug. 8, after reaching a euro-era high of 6.3 percent on concern Italy would become Europe's next debt victim.

Advertisement

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement