Italian MPs vote unpopular austerity package into law
Italy's lower house of parliament today approved an unpopular austerity package totalling 25 billion euros aimed at bringing the public deficit under control and reassuring markets.
Sponsored by the centre-right government of Prime Minister Silvio Berlusconi, the law passed by 321 to 270 votes, with four abstentions.
The law was approved by the Senate two weeks ago and was the object of a confidence vote yesterday.
The plan calls for a three-year salary freeze for public workers, a 10 percent cut in ministry budgets, less funding for local governments and more action to combat tax evasion, among other measures.
The plan also raises the retirement age of public and private workers by more than three years by 2050.
The austerity package is aimed at reducing Italy's public deficit to 2.7 percent of gross domestic product in 2012 compared with 5.3 percent last year.
What Berlusconi has called "essential sacrifices to save Italy's future" have sparked protests and strikes by a cross-section of Italian society including judges, diplomats, civil servants, public sector doctors and museum curators.
Italy's largest union, the far-left CGIL, staged a general strike on June 25 to protest the plan, with hundreds of thousands of people taking to the streets.
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Wenzu Vella
Jul 29th 2010, 23:18
To assess a financial situation one have to know exactly what one owes, in the case of governments the citizens never knows because it is not in the administration’s interest to let the people and the opposition know .
In Malta’s case we have an idea that the sovereign debt is over 4 billion euro. The interests on this is a staggering 100 million euro plus annually, this equates to about 250 euro per head of population, of-course this is a very conservative estimate, because if one factor in the projected new infrastructure of city gate and others, and the borrowings that the Maltese government made in the name of each and every citizen to give to Greece, the sovereign debt could well be 5 billion euro plus.
This is a huge amount of money for a tiny country like Malta with such a small population to bear.
So don’t be fooled when you hear politicians say that Malta is financially sound.
mpace2
Jul 29th 2010, 17:27
Its our term next and do;nt be fooled by by fantasy dreams by the big heads and they are their to fool the nation???
Tony Mangion
Jul 29th 2010, 16:42
George, what can you expect when our P.M. is all smiles when refering to Malta's financial situation, so much so that he declared that the worst is over. Berlusconi admitted that sacrifices are essential.
CZarb
Jul 29th 2010, 15:58
Meanwhile our MPs where busy increasing their salaries in the middle of a recession.
George Scerri
Jul 29th 2010, 16:23
Meanwhile the Labour is complaining that we didnt get a tax CUT.
A.muscat
Jul 29th 2010, 16:46
because that's what Gonzipn has promised us before the election mr Scerri
john zahra
Jul 29th 2010, 17:06
Berlusconi promised tax cuts too. So did Merkel, Sarkozy.
No one could have predicted what happened to the economy just 2 years ago.
Thankfully our Government intervened to save jobs and still found the money for
-minor income tax cut in first budget
-one year no tax for mothers returning to work
-tax cuts for businesses
-tax cuts for parents who send children to private schools, nurseries or host foreign students..
and much more..
I think we got a much better deal!@
Ernest Vella
Jul 29th 2010, 17:37
I don't expect the election promise tax cut...who thought of a major recession...we were entering agitated waters just before the elections...sometimes we are called to do some sacrifices to our country...altough lets say the truth...its not that bad...yes we are not a heaven on earth living with all the these bills...but we're neither in our last resources.
Think only what would had happen if we decided to be a Switzerland in the Meditteranian?
Joseph Scicluna
Jul 29th 2010, 17:47
"because that's what Gonzipn has promised us before the election". Taf tkun onest sur Muscat?. Dak iz-zmien hadd ma kien jaf bil krizi li hakmet id-dinja kollha.
Robert Agius
Jul 30th 2010, 14:19
@ John Zahra
No one could have predicted what happened to the economy just 2 years ago.
Hahahaha! yeah right! That's what they want you to believe.
The banks got the better deal. Slaves never do. People lost their savings. NOBODY bailed the common folk out. Not only that but now the common folk is to pay even more. Capitalism needs to be revised but a few people love it the way it is.