THE Italian government yesterday approved an end of year package of measures intended to raise around 4.3 trillion lire (£2 billion) and complete the country's 1997 austerity budget.

"The fiscal measures, as laid out in the budget law, complete therefore the 1997 budget through the raising of extra income for a total of 4.305 trillion lire," the government said in a statement after a cabinet meeting.

It said the measures, adopted in the overall form of a decree law, followed two main criteria - to avoid contributing to inflation and avoid hitting consumer demand.