Italian senate passes €30 billion austerity package

December 22, 2011

The Italian senate has approved in a 257 to 41 vote a 30 billion (39 billion or 25 billion) austerity package that Italian prime minister has called the "Save Italy Decree". The measures had previously passed in the Chamber of Deputies, Italy's lower house, with a 402 to 75 vote.

The economic changes include raising the retirement and state pension age, the reintroduction of a local housing tax, spending cuts on health, and a ban on cash transactions over €1,000 (US$1,300 or £830) to prevent tax evasion.

Monti told the Senate before the vote: "Our country's credibility is essential to overcome the crisis, just as it's also essential for our economy to return to growth". The economic reforms have been supported by, the political party of former prime minister Silvio Berlusconi.

However, from the  party attacked the plans, claiming "[i]t's got too many taxes and above all, it doesn't create jobs." Trade unions are also expected to oppose the changes.