Italy approves €45.5bn austerity budget in bid to calm investors

ITALY’S cabinet last night approved a €45.5 billion austerity budget — its second in weeks in a bid to calm investors, with measures including more taxes on high earners.

“It’s €20bn in 2012 and €25.5bn in 2013,” Prime Minister Silvio Berlusconi told reporters after the government meeting.

He said the measures were in line with demands from the European Central Bank in return for massive support given to Italy’s bond markets this week.