Italy's government said today it would call a confidence vote in parliament to push through an unpopular €25 billion austerity budget after agreeing changes that leave the overall size of the package unchanged.
Prime minister Silvio Berlusconi hammered out a deal with his economy minister Giulio Tremonti on modifications as they faced growing criticism from both inside and outside the centre-right coalition over the deficit-cutting measures.
The two agreed on "improvements" to the budget, without changing the overall amount of deficit-cutting measures included, a statement from the prime minister's office said.
Italian media have said Mr Berlusconi and Mr Tremonti were at loggerheads over the budget, which the normally effervescent prime minister feared was too harsh and would sink his popularity ratings.
A confidence vote will allow Mr Berlusconi to quickly push through the package in parliament - where he has a solid majority - without having to debate modification proposals presented by lawmakers.
The budget includes funding cuts to local governments and salary freezes for public sector workers, prompting an outcry from mayors, regional governors and Italy's largest union.
A government statement said that while individual interest in changing the budget could be seen as legitimate, the process would take too long.
Tens of thousands of Italians marched through cities and towns last month in a general strike protesting the austerity budget they said bleeds workers but spares the rich.
Polls have shown Mr Berlusconi's ratings have fallen over the budget, but divisions among major unions are expected to allow Italy to escape the kind of social unrest seen in Greece.
Italy is one of several euro zone nations that have rushed to approve austerity measures in order to restore confidence in the single currency and deflect contagion from Greece's debt crisis.
Reuters