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Italy's lower house adopts Monti's austerity plan

ROME: Italy's lower house of parliament formally approved Prime Minister Mario Monti's austerity package on Friday after he won a vote of confidence on the measures aimed at speeding up implementation.

The plan, intended to balance the budget by 2013 in a bid to reassure skittish markets, is set to go to a vote in the upper house next week and be adopted just before Christmas despite strong opposition from the unions.

The former eurocrat's crisis-busting plan, which was approved by the cabinet on December 4, aims to reduce the deficit by around 20 billion euros ($25 billion) and includes measures worth over 10 billion euros to boost growth.

"We all have the same aim at heart: to work for Italy's good. If we do our duty, I have no doubt Italy will be saved," Monti told members of parliament. "An Italy with its public finances in order will make its voice heard in Europe," he said.

"Without this intervention, the savings of Italians are at risk," he added.

The lower house voted overwhelmingly in favour of the package with the exception of the right-wing Northern League -- former premier Silvio Berlusconi's coalition partner -- and the centre-left Italy of Values party. (AFP)