Analysis: Italy's austerity measures

Massimiliano Tani, Associate Professor at the Department of Economics at Sydney's Macquarie University, says many Italians were hoping for more far-reaching cuts in the latest round of austerity measures.

Italy's cabinet has adopted a package of tax hikes, budget cuts and pension reforms worth 20 billion euros ($A26.44 billion) in a rush to avoid a bankruptcy that threatens to bring down the Eurozone.

Professor Tani says the government has approved measures that affect almost every part of Italian society, but he says many Italians were hoping that the government would further cut the benefits of some traditionally privileged parts of Italian society, "for example benefits that the Catholic Church receives from the state or privileges that people receive in politics".

"The measures to sustain economic growth are really weak," he added.

"Italy's economic growth has been below the European average for over 20 years and this has been really hurting Italians".