Italy: Next to implement austerity plan

3rd July 2011

As the New York Times reports: "The three-year plan is designed to eliminate the government's budget deficit by 2014.

The package is balanced between lowering spending and increasing revenues, finance minister Giulio Tremonti said, adding that the measures should also spur the growth of Italy's dawdling economy."

Among other measures, the Government is planning to raise the women's pension age, something that will be familiar to women in the UK as well.

Here Yahoo Finance gives the full list of measures.

However some economists have criticised the plan because it comes into force in 2013 after Parliamentary elections.

The New York Times quotes Francesco Daveri, an economist at the University of Parma, saying: "They put off until later difficult decisions to make. But correcting pensions in 2020, in politics that's like saying who knows when that'll happen."

FT Alphaville has been pointing out some concerns about Italian financial institutions noting that spreads are widening in a recent post entitled Tail Risk Italiano.

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