Markets rally as Italy approves austerity package

clock

European markets rallied late on Friday as Italy approved new austerity measures, a move which is set to precede the resignation of Prime Minister Silvio Berlusconi.

London's FTSE closed more than 100 points higher at 5,545 while major indices in Germany and France also rallied. In New York, the Dow Jones gained almost 270 points, or 2.24%, to 12,160 shortly after opening. The austerity package outlines plans to make almost €60bn savings from a mixture of tax rises and spending cuts. Berlusconi had promised to resign once the measures had been passed, with his successor tipped to be former EU commissioner Mario Monti. It follows a tumultuous week for Europe's third-largest economy, which saw its ten-year bond yields top the key 7% level on W...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

OBR independence 'a major advantage' for UK economy

OBR independence 'a major advantage' for UK economy

Treasury Committee hearing

Alex Sebastian
clock 20 May 2026 • 4 min read
Bank of England warns of future rate uncertainty after vote to hold at 3.75%

Bank of England warns of future rate uncertainty after vote to hold at 3.75%

One vote to hike rates

Michael Nelson
clock 30 April 2026 • 2 min read
Navigating an uncertain environment: Applying a disciplined, data-driven approach

Navigating an uncertain environment: Applying a disciplined, data-driven approach

'​Looking ahead, the fundamental case remains constructive'

Fahad Hassan
clock 28 April 2026 • 2 min read