Eurozone crisis: Italy’s Senate backs austerity bill

THE Italian Senate today passed a key package of economic austerity measures demanded by the EU.

The move paves the way for Premier Silvio Berlusconi to quit as early as this weekend after the lower chamber clears it.

The Chamber of Deputies could take up the legislation as early as tomorrow.

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The Senate voted 156-12 to pass the budget bill, which contained the reform measures.

Mr Berlusconi has promised to resign as soon as parliament passes the reforms.

There are mounting indications that respected economist Mario Monti will be asked to head a transitional government to push through even more difficult reforms to pull Italy back from a Greek-style economic crisis that would threaten the existence of the entire eurozone and cause a global recession.

Meanwhile, Prime Minister David Cameron today said that there is a “big question mark over the future of the eurozone”, as he warned that Britain’s economy faces a difficult period because of the problems in the single currency area.

Mr Cameron said he was doing whatever he can to get Britain “safely through the storm”.

But he did not rule out a “double-dip” recession for the UK, noting that a series of forecasters have predicted slowing growth over the coming months.

Asked by BBC Radio 2’s Jeremy Vine about the risk of a return to recession, Mr Cameron responded: “I’m not a forecaster. What I would say is that it is clear that the last quarter of the economy we did grow - we grew by 0.5 per cent.

“Others are forecasting growth, but it is clearly slowing growth and it is a difficult time for the economy.”

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Mr Cameron added: “These are very worrying times, I can’t hide that from you. It is a very difficult time for the eurozone.

“There is real turbulence in the markets, real question marks over whether countries can deal with their debts and a big question mark over the future of the eurozone.

“Our responsibility,-my responsibility, is of course to try to help bring about a solution to these problems, but above all my priority is to try to keep the British economy safe.”

Mr Cameron said that Britain was going to face “a difficult time because of what is happening in the eurozone”, but said he wanted to ensure it comes “safely through the storm”.