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Italy announces austerity measures

By the CNN Wire Staff
  • Italy
  • European Markets
  • Euro Zone

Rome, Italy (CNN) -- Italy has become the latest eurozone country to announce austerity measures to curb its debt, outlining a two-year package of cuts totaling 24 billion euros ($29.6 billion).

The measures are aimed at bringing the ratio of debt to gross domestic product to below 3 percent by 2012, the government announced Tuesday.

The cuts will target public spending, including the cost of public administration, the government said. The government will also launch a bigger fight against tax evasion, the government said, with reinforced cross-checks between the internal revenue agency and the national welfare agency.

There will be rules on bankruptcy and a system of tax advantages for southern Italy, the government said.

Public employees will have their salaries frozen for three years and the higher wages will be cut, it said.

Greece and Spain have also made recent cuts in the face of rising debt, drawing protests in both countries.