Italy’s senate approved on Friday a key package of deficit-cutting reforms that’s set to pave the way for Prime Minister Silvio Berlusconi’s resignation early next week, the Financial Times reports. After a second vote in the senate later today, which is usually a formality, the bill will move to the lower chamber for final approval on Saturday. Italy’s head of state Giorgio Napolitano said earlier this week Berlusconi would resign after the approval of the legislation, which contains measures demanded by eurozone leaders to reduce Italy’s budget deficit and liberalize the economy. The market reacted positively to the news, with Italian bond yields dropping below the 7 per cent “red line” they had crossed in recent days, wading into what analysts said was default territory.
Looking for more?
Get the best of Maclean's sent straight to your inbox. Sign up for news, commentary and analysis.