Italian Cabinet Approves Austerity Measures

Italian Prime Minister Mario Monti Sunday announced that his government had approved measures aimed at cutting the nation's deficit and boosting its economy.

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Monti, who became head of a technocratic government last month following the resignation of Silvio Berlusconi, said the measures would help prevent Italy from causing the euro currency to collapse.

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They include cuts on government spending and efforts to better combat tax evasion, which is widespread in Italy. As part of government cost-cutting Monti said he would forgo his salary as prime minister, the Associated Press reported. Other measures are aimed at boosting growth and economic competition, the news service said. "We gave a lot of weight to fairness, we had to distribute some of the sacrifices but we took a lot of care to distribute them in a fair way," Monti was quoted saying by the AP.Overall, the measures will impose about 24 billion euros of tax and spending cuts, The Wall Street Journal reported, citing government sources. It is aimed at making sure Italy runs no deficit by 2013, the Journal added. Speaking to reporters after the Cabinet passed the measures, Monti also said the government will tax financial assets that families hold and said such a measure should be adopted across Europe, the Journal reported. Monti added that Italy now supports a continent-wide tax on financial transactions, the newspaper also said.The premier plans to outline the package Monday to Italy's parliament, which must approve the measures.

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