Green light

The Italian government easily won a vote of confidence in the lower house of parliament on Friday, a vote to support a package of reforms that Prime Minister Mario Monti said are vital to save the country from financial disaster.

Monti called the vote to speed the passage of the 30-billion-euro ($39 billion) package of austerity reforms. About a third of those savings will be directly reinvested into the economy.

The austerity package was approved by 495 deputies, with 88 voting against, and four abstentions. The senate or upper house is expected to formally approve the measures next week.

The package includes budget cuts, pension reforms and extra taxes, and is designed to prevent the eurozone's third-largest economy from having to seek financial assistance from the European Union and the International Monetary Fund. The measures are intended to balance the budget by 2013 and reassure skittish markets.

Italy "has a message to send to Europe," Monti said ahead of the vote on Friday.

Anger over pension reforms

As the vote took place, a one-day national transport strike was causing chaos for thousands of commuters. Unions are angry over plans to make Italians work longer before being eligible for a state pension.

Although the package passed with ease, lawmakers on both sides of the political divide have criticized the pension reforms as too harsh. But they are also keenly aware that if Monti fails, new elections could be called within a few months, further destabilizing an already fragile economy and delaying a recovery.

Monti, who became prime minister after Silvio Berlusconi stepped down in November, is under pressure from his European partners to reduce Italy's huge debt burden, but also to kick-start growth.

Mail intercepted

Meanwhile, Italian police have intercepted 10 letters at a postal sorting office in the southern region of Calabria. The envelopes, addressed to various politicians, including the prime minister, and several newspaper editors, contained bullets and threats.

The letters related to the government's planned austerity measures and were signed by a previously unknown group calling itself the Armed Proletarian Movement. Local prosecutors have opened an investigation into the incident.

Police have stepped up their monitoring efforts after an Italian anarchist group sent out two letter bombs last week.

Author: Joanna Impey (AFP, dpa, Reuters)
Editor: Martin Kuebler