Italian Prime Minister Silvio Berlusconi (R) and Minister of Economy and Finance Giulio Tremonti attend a press conference after a cabinet meeting on financial situation in Rome, Italy, Aug. 12, 2011. The Italian cabinet approved a 45.5 billion euro (about 64.8 billion U.S. dollars) austerity program Friday evening for the upcoming two years in a bid to meet budgetary requirements by the European Central Bank (ECB) and reassure markets. [Xinhua/Wang Qingqin]

The Italian cabinet approved on Friday a 45-billion-euro (around 64-billion-dollar) austerity program in a bid to avoid a believed debt crisis.

The bill, which came at the end of a nearly 2-hour meeting, reinforced the previously-approved budget plan with additional measures worth 45.5 billion euros (65 billion dollars) for the upcoming two years.

The aim of the program was to meet budgetary requirements by the European Central Bank (ECB) and reassure markets.

Among the tight measures envisaged are cuts to political costs, public employees and reduction in the number of local authorities and national festivities, together with a pension reform, solidarity taxes affecting high incomes and new liberalizations, ANSA news agency reported.

Talking at a press conference following the cabinet meeting, Prime Minister Silvio Berlusconi said he was aware that the emergency plan was all "sacrifices and tears" but that it was essential for Italy's salvation.

"Our heart is bleeding, I promised not to raise taxes but the dramatic economic situation forces me to do so if we intend to reach budget balance by 2013," he stressed.

Berlusconi also noted that this program was in the direction of what the ECB had recommended, and as a return the ECB from Monday intervened on the Italian markets buying its bonds.