Markets on guard as Italy readies austerity plan

MILAN, (AFP):The Italian government is preparing to adopt an austerity plan on Thursday worth more than 40 billion euros ($57 billion) in a bid to calm markets amid major internal political divisions.

The plan aims to bring Italy’s public deficit to just 0.2 percent of gross domestic product (GDP) by 2014 from 4.6 percent in 2010 but a previous smaller round of austerity approved last year sparked a wave of social protests.