Italian government approves new austerity cuts

Italy's government approved (EURO)45.5 billion ($64.84 billion) Friday in emergency austerity measures over two years to balance the budget by 2013 in response to demands by the European Central Bank.

The Cabinet approved the package of cuts and new taxes despite fierce resistance from local government officials, who denounced the measures as socially unjust and as damaging to economic growth. (AP)