The Italian parliament gave final approval on Wednesday to a 54 billion euro package of austerity measures the center-right government has put forward to balance the budget by 2013.
The Lower House voted 314 to 300 in favor of the package of measures, which include a one percentage point hike in value added tax and cuts to government spending.
Approval was expected after the government comfortably won a confidence vote in the Lower House earlier in the day.
The upper house Senate approved the austerity plan on September 7.
(Reporting By James Mackenzie)