Italy to bolster austerity plan, pass it by Friday

[July 13, 2011]  MILAN (AP) -- Italy's finance minister says the government's package of austerity measures will be strengthened and passed in both houses by Friday.

Giulio Tremonti sought to reassure markets during a speech to a banker's association meeting in Rome that Italy would speed reforms and austerity measures that seek to balance the budget by 2014.

But he also said that the pressure on markets in recent days was not a problem "of a single country, but of the structure of Europe."

The acceleration of the austerity measures -- initially set for passage by August -- has eased pressure on financial markets.

The Milan stock exchange was trading up 1.4 percent to 18,765 points, while the 10-year yield dropped to 5.45 percent, after touching 6 percent a day earlier.

[Associated Press]

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