ROME (AP) — Italy is expected to pass a euro70 billion ($99 billion) austerity package on Friday — a move considered crucial to stop the eurozone's third largest economy from succumbing to the debt crisis.
Premier Silvio Berlusconi's government has fast-tracked approval of the package measures and increased their scope after markets plummeted this week on worries over Italy's financial stability.
The measures go before the lower house at around 6 p.m. (1600 GMT, 11 a.m. EDT) Friday after markets close — around the same time results of long anticipated stress tests on European banks, including Italian ones, is released. The measures passed the Senate on Thursday
Berlusconi, who remains under pressure from the opposition to resign, even showed Friday for a vote of confidence tied to the austerity package — easily won by his government. He has been criticized for remaining out of the public eye at a time of crisis. Friday's was his first public appearance in about a week.
"I've not been absent or missing," Berlusconi said, according to the ANSA news agency. "On the contrary, these past days I've read all the documents, I've worked for the good of Italians."
Political uncertainty mounted last week after Berlusconi publicly made critical remarks about Finance Minister Giulio Tremonti, who has been the public face of the austerity measures. Tremonti has been reportedly bickering with the premier over the measures, but he has dismissed any suggestion he might step down.
While Berlusconi has been weakened by a series of scandals and defeats in referendums on his policies, Tremonti has seen his position in the government strengthened, despite a corruption scandal involving a former aide.
Opposition lawmakers maintain the government is too weak and divided to handle to the financial turmoil, and should just give up.
"If Italy was the target of markets' attacks, it is because this government's policies have no credibility," said Rosy Bindi, the president of the opposition's strongest force, the Democratic Party.
Market fears grew this week that the financial crisis engulfing Greece, Ireland and Portugal might spread to Italy, a country marked by high debt and low growth, and far too expensive for Europe to rescue.
Italy's debt is among the highest in the eurozone at nearly 120 percent of GDP, but poor growth is viewed by many as the overriding issue.
The austerity package seeks to balance the budget by 2014 and contains 16 measures to spur growth, according to Tremonti, who spearheaded it.
It includes increases in health-care fees, cuts to tax breaks and high-end pensions, raises in the retirement age and public-sector salary freezes. The government is also looking into privatizing state-owned companies such as the state railway or postal services once the crisis eases.
"Italy is in an orderly condition and absolutely is not to be compared with Greece," German Finance Minister Wolfgang Schaeuble said in an interview released by his ministry Friday. He added that "Italy's total debt certainly does not correspond to European requirements, but on the other hand the new borrowing is not really worrying and will be reduced quickly."
"This austerity package foresees zero new borrowing in 2014," Schaeuble said. "I assume that this will assuage markets' doubts."
The opposition decried the package as targeting the weak and voted against it. But it refrained from presenting filibustering amendments — a common practice with budget laws — thus allowing for a speedy passage. President Giorgio Napolitano, who has demanded a bipartisan approach to stave off the crisis, said after the Senate approval that a "miracle" had happened.
A few hundred public employees, pensioners and other citizens protested in front of parliament and elsewhere against what they say are unfair measures.
Berlusconi has been weakened by a sex scandal centering over his alleged encounters with a Moroccan teen. He is on trial for corruption, tax fraud and, in the most sensational case, prostitution with a minor. He denies all wrongdoing.
In another huge blow, the Berlusconi family's investment company was recently ordered to pay euro560 ($797) million to a rival media group over corruption in the acquisition of a publishing company two decades ago.
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