Italy's Senate has approved new austerity measures, the first step to reduce the country's financial crisis and pave the way for expected the resignation of Prime Minister Silvio Berlusconi.
The upper House of Parliament approved Italy's desperate financial reform Friday, with the Board of Deputies was expected to give a low approval on Saturday. When the final approval of plan of retrenchment occurs, Mr Berlusconi has said he will resign as leader of the country.
That is likely to lead to the formation of a new Government led by former Eu competition Commissioner Mario Monti. The President of Italy Giorgio Napolitano earlier this week named Monti a senator for life, and Senators applauded him at the Hall Friday.
In Greece, Lucas Papademos was sworn in Friday as interim Prime Minister, head of a coalition Government which is hoping to save the country from a crisis in finance. His new Cabinet including the Minister of the Greek artist Evangelos Venizelos, a key figure of the Government out of the Socialist George he was Prime Minister.
United States and European stock markets leapt Tuesday as investors welcomed news of Italy and Greece.
The Transitional Government of Greeck will apply the budget cuts are very popular European leaders needed to secure the next installment of the rescue package that would make Greece from bankrupt in weeks.
Mr Papademos said the coalition Government would "do the best I can" to solve the country's economic woes. New leader says he expects to be successful, if the United States.
Italy has the third largest economy in the euro zone, but economic growth is stagnant and the country has put together a staggering $ 1.6 billion in public debt. Loan costs topped 7 percent this week, a threshold that forces Greece, Ireland, and Portugal in search of international bailouts. But with Italy MPs in line to adopt austerity plan, interest has now retreated under the sign of 7 percent.
The austerity measures including Italy sales by $ 20 billion worth of Government property, opening closed professions and increasing the State pension age from 65 to 67 by 2026.