Italian gov't clears financial stability decree

The Italian government approved on Friday a financial stability decree aimed at securing public finances by cutting down the expenditures of several ministries. Among the measures envisaged are 60-million-euro (about 83 million U.S. dollars) cuts in 2012-2013 to police forces, a reduction in funds for road and railway controls, a cut to public employees' benefits and to the country's pension system, according to a note issued by Prime Minister Silvio Berlusconi's office. On the other hand, additional resources were allocated for the Education and Environment ministries. The cabinet meeting also decided to invest fifty percent of the additional revenues coming from mobile technology public auctions in reducing Italy's soaring debt level, which currently stands at 1,899 billion euro after a slight fall in August. The stability decree, aimed at rationalizing the use of public resources, is connected to the recently cleared 54-billion-euro budget plan aimed at tightening fiscal discipline and calming fears of a debt crisis which in recent months has been looming over Italy, Europe's third largest economy. The rating company Fitch downgraded last Friday Italy's sovereign credit rate from AA- to A+ and kept its outlook on negative, following the suit of Moody's and Standard & Poor's on concerns that the government seemed incapable of responding to the challenging domestic and external macroeconomic environment.