Italian parliament adopts whopping austerity budget

Italy's parliament on Friday gave final approval on Friday to a whopping 48-billion-euro ($68-billion) austerity budget aimed at slashing the public deficit by 2014 and reassuring nervous financial markets.

Adoption of the plan, which includes deep cuts to regional subsidies, family tax benefits and top-tier pensions, came just ahead of hotly awaited results of stress tests which were failed by eight of the 91 European banks being tested.

All five top Italian banks passed the tests with "an ample margin," the central bank said, adding the review showed that Italian banks were prepared even if there were to be a "sharp deterioration" in Italy's sovereign risk.

"Italy is stronger now, even though there are still uncertainties over the economic crisis and we have to overcome critical issues that prevent economic growth," Prime Minister Silvio Berlusconi said after the parliament vote. 

Source: Bangkok Post