Italy's lower house of parliament has passed a €48bn austerity package aimed at balancing the country's budget by 2014.
Government and opposition parties put aside their differences to ensure the smooth transition of the bill, which came amid increased fears that the country would ultimately need a bailout.
These market concerns led the opposition to promise not to hold up the bill with delaying tactics, allowing the package to pass through parliament with unusual speed.
Italy has avoided the worst of the financial crisis due to strong controls on public spending, a conservative banking system and a high level of private savings.
But with Greece and Ireland both in trouble, markets have been unnerved by a public debt level, which is among the highest in the world at 120% of gross domestic product.
Addressing the senate shortly before yesterday's vote, Italy’s economy minister Giulio Tremonti said Europe needed a political solution to the unravelling debt crisis because no country would be spared dire consequences.
‘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, referring to Europe's stronger economies.
The opposition voted against the measure but did not present amendments or carry out any filibustering tactics - it hopes to show voters it is acting responsibly to overcome the crisis.
Bond traders have targeted Italy, the eurozone's third-largest economy, because of doubts about its ability to sustain its debt burdens and fears it is getting sucked into a widening debt crisis.
