August 13, 2011 ~The European Central Bank decision to buy Italian bonds has forced the Italian Government to accelerate austerity measures designed to balance Italy's budget by 2013 instead of 2014. Yesterday, Friday, the Italian Cabinet approved a budget of 45.5 billion euro ($64.8-billion). The budget includes $28 billion in cuts next year and $35 billion in 2013. The budget is expected to be approved by parliament in early September. It's approval, however, is not guaranteed. The Italian trade union federation gave warnings already of possible strikes against the budget measures.. The budget include a new tax on high earners, those who earn more than 90,000 euros per year, and deep cuts to local governments. The measure would also eliminate 37 Italian provinces whose population is under 300,000, such as Isernia and Asti. (Click here to see list). Prime Minister Berlusconi, who has always opposed a tax increases, told reporters. "my heart is bleeding", saying the tax went against his promise "never to put my hand into the pockets of Italians." When asked whether the measures would impact on Italy's already weak growth. Italy's Finance Minister Giulio Tremonti said: "We do not have any alternative."

|CiaoAmerica.net|