Monti defends austerity ahead of Wednesday parliament debate

Italian Prime Minister Mario Monti defended his proposed austerity measures to lawmakers before they go to parliament on Wednesday, warning that Italy is in the middle of a debt "emergency". "The alternative would be a worsening of the sovereign debt crisis that would bring not a recession but the destruction of Italians' wealth," Monti said at a meeting of parliament's budget and finance committees on Tuesday. "The context is a grave economic urgency," he said. The measures approved by Monti's cabinet include property tax increases, pension reforms and government cost cuts. The prime minister conceded that the proposals could slow internal demand but said the package was fair. "It's not the usual suspects who will have to pay," Monti said. Lawmakers were fine-tuning the measures before debate begins in the lower house of parliament on Wednesday with a vote expected this week. The upper house is set to give its final approval next week. The savings from the package are estimated at around 20 billion euros ($26 billion) with additional spending of 10 billion euros in a bid to boost an economy lumbered with extremely high public debt and low growth. "This is an intervention to save Italy," Monti said.