Italy's government has agreed to cut spending by 26bn Euros over the next three years to plug the gap between spending and income. The cuts, approved after seven hours of talks, include a 10% reduction in the number of civil servants and cuts to healthcare and come as Italy struggles to keep the faith of investors.
As expected, more than two-thirds of the lawmakers in Germany's parliament moved on Friday to approve the permanent Euro rescue fund, the European Stability Mechanism, and a fiscal pact long championed by Chancellor Angela Merkel.
The German government and opposition reached on Thursday a deal that will allow parliament to approve the European Stability Mechanism, ESM, next week, but Germany's top court may delay the rescue fund's start date, saying it needed time to study the treaty.
Italy is hugely exposed to the risk of contagion from the debt turmoil in the euro zone, said Prime Minister Mario Monti, suggesting the European Central Bank take action to help cool borrowing costs.
Italy's Prime Minister has not ruled out bringing in the army to deal with the increasing levels of violence across the country. PM Mario Monti raised alert levels Sunday at sensitive sites across the country after a rebel group shot and wounded the head of the state-controlled nuclear energy company, Ansaldo Nucleare.
European Commission Vice President Antonio Tajani addressed Argentina's plan to expropriate 51% of the 57.43% share-package Spanish ran Oil Company Repsol owns, during a speech at the European Parliament on Wednesday. From Rome Italy also voiced its concern with events regarding YPF and trade restrictions.
Italian Prime Minister Mario Monti expressed concern about Spain's public finances and said it would not take much to reignite the Euro zone debt crisis and revive the risk of it spreading to Italy.
Italy is in recession, final data confirmed Monday. Italy's economy shrank 0.7% in the fourth quarter of 2011, following a 0.2% decline in GDP in the third quarter.
Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA were among 15 Spain-based financial firms downgraded by Standard & Poor's after the credit-ratings company reduced the nation's grade last month.
The Moldovan blonde spotted with the captain of the shipwrecked Costa Concordia, Francesco Schettino, on the night of the disaster, has told Italian investigators she is in love with him.