Italy joins Greece and Ireland in austerity pain

Italy‘s upper house of Parliament passed the 48bn euro austerity package on Thursday, and its lower house is expected to do the same on Friday. It will then pass into law.

While Italy has avoided the worst of the financial crisis thanks to strong controls on public spending, a conservative banking system and a high level of private savings, it has become embroiled in the wider euro zone crisis sparked by difficulties in Ireland, Portugal and Greece.

Markets have been unnerved by a public debt level in Italy that is among the highest in the world at 120 percent of gross domestic product. The latest economic package from the Italian Government is aimed at calming these fears.

Many other countries across Europe have been forced into similar steps to get their economies back on track.

Austerity sweeps Europe

Greece only passed its austerity package amid riots, and protests also shadowed the unveiling of Ireland’s financial plan. Both countries had to agree cuts in order to secure bailouts from the European Union and International Monetary Fund.

Portugal’s financial woes cost the country its leader, and it is only now getting back on track with austerity plans after an election.

Even the UK had to outline a package of £81bn of spending cuts in the Comprehensive Spending Review last year.

The Channel 4 News graphic, left, looks at the relative amounts of pain countries across Europe are feeling as they attempt to recover from the economic crisis.

And if this looks bleak, Italy’s Economy Minister Giulio Tremonti is warning that it could get much worse. He believes that not even Europe’s strongest economies would be spared the repercussions of the unravelling sovereign debt crisis sweeping the region.

“No-one should have any illusions of individual salvation. Just like on the Titanic, not even the first class passengers will be saved,” he said.