The upper house of the Italian parliament, the senate, has approved a draft austerity bill to slash public spending in a bid to head off its looming financial crisis and satisfy the bond markets and the EU.
The senate voted by 156 to 12 in favor of the package, while one abstained.
Italian Prime Minister Silvio Berlusconi said earlier this week he would resign after the government finally approves the new law. The lower house is expected to approve the law on Saturday.
The bill also includes labor reform proposals, aimed at increasing employment among women and young people, and a sell-off of state-owned assets and agricultural land.
European stocks rose on the news coming from Italy. As of 17:36 Moscow time Germany's DAX was up 2.03 percent to 5,986.75, the French CAC 40 index rose 1.48 percent to 3,110.18, while the UK FTSE 100 added 1.02 percent to 5,500.60.
