© The Associated Press/Mauro Scrobogna/LaPresseItalian Prime Minister Mario Monti
Premier Mario Monti said his government of technocrats has approved a package of austerity and growth measures worth euro30 billion ($40.53 billion) to "reawaken" the Italian economy and help save the euro common currency from collapse.
The measures include immediate cuts to the costs of maintaining Italy's bulky political class as well as significant measures to fight tax evasion, Monti told a news conference following a three-hour Cabinet meeting.
As part of the political cost cuts, Monti said he would forego his salaries as premier and finance minister - a move he said was a personal decision and not meant as an example for other ministers in the government, which was formed 2 1/2 weeks ago after Premier Silvio Berlusconi's resignation under market and political pressure.
The package also includes measures to spur growth and competition, while aiming to stamp out rampant nepotism. But it also raises the retirment age and the number of years of service to qualify for a full pension, steps strongly opposed by unions, and imposes new taxes on Italians' private wealth, including their homes, boats and luxury cars, measures that conservatives have protested.
Comment: For a more interesting outlook on this case, read What Really Happened to Strauss-Kahn?