Italian govt wins final approval for 2005 budget

The Italian Senate today gave final approval to the government’s 2005 budget, including spending cuts and revenue-raising measures worth €30bn, and designed to keep Italy’s deficit under European Union limits.

The budget also includes some €6bn in income tax cuts pledged by Premier Silvio Berlusconi and added to the budget last month.

The budget was debated amid concern that the tax cuts and continuing slow growth could push Italy’s deficit beyond the limit of 3% of gross domestic product set for EU member countries.

Yesterday, the government won approval for the bill in the lower house with a confidence vote, a tactic used to speed the passage of legislation by closing the ranks of coalition MPs and avoiding lengthy debates and amendments.