This is the third time the Italian government has proposed an austerity package which is causing analysts to question if the government means what it is saying. The austerity plan introduced earlier this month has been scrapped.
Rome has a debt accounting for 120% of the domestic GDP. In turn, the bond market has been drained by investors, causing the ECB to step in and buy up the debt to keep the country from default.
The latest plan includes a mix of stricter tax collection measures, a reduction of tax breaks for cooperatives, and an overhaul of the pension rules that an Italian citizen will have to work for 40 years to be eligible for retirement.
Tisha Guerrero contributed to this article.
