European Council President Herman Van Rompuy has welcomed Italy's new austerity measures, saying they are ''crucial'' for the entire eurozone.
Mr Van Rompuy issued a statement after speaking to Italian Prime Minister Silvio Berlusconi on Saturday evening.
On Friday, Mr Berlusconi announced a 45 billion euro ($US64 billion) plan aiming to balance its budget by 2013 by cutting public spending and raising taxes.
The BBC reports the package was Italy's second austerity budget in as many months.
