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Berlusconi has promised bold reforms in order to allay market fears (Photo: The Council of the European Union)

Berlusconi struggles to implement austerity measures

Italian leader Silvio Berlusconi has announced changes to his previously-announced austerity measures due to tensions in the governing coalition.

Under the new version of the package, the government has decided to scrap a so-called solidarity tax of 5 percent on income of more than €90,000 a year, rising to 10 percent for income above €150,000.

Parliamentarians, whose salaries can go up to €140,000 a year, will still have to pay this tax, however. Meanwhile, constitutional change...

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