The adoption of the draft law by the cabinet on Sunday has pushed up stocks and lowered borrowing costs, which had reached alarming levels in recent months due to fears of Italy's 1.9-trillion-euro ($2.5-trillion) debt blowing up. - AFP photo

ROME: Italian lawmakers on Wednesday began debating a tough austerity programme proposed by Prime Minister Mario Monti, as trade unions planned strikes against the proposed tax hikes and pension reforms.

Italy's three biggest unions -- CGIL, Cisl and UIL -- announced a three-hour strike of private sector workers on Monday. Public sector workers from the same unions also announced they would hold an eight-hour strike on December 19.

Meanwhile the budget committees of the lower and upper houses of parliament met in Rome to start discussions on the measures, a day after Monti said that lawmakers had to approve the measures quickly or risk leaving Italy bankrupt.

Parliamentary sources said the measures -- contained in a draft law -- could go for a vote in the lower house early next week. They would then have to be approved by the upper house and be signed off by President Giorgio Napolitano.

The adoption of the draft law by the cabinet on Sunday has pushed up stocks and lowered borrowing costs, which had reached alarming levels in recent months due to fears of Italy's 1.9-trillion-euro ($2.5-trillion) debt blowing up.

The three main unions have asked for negotiations with Monti to request the “necessary changes” to the austerity plan but the prime minister, a former EU commissioner, said earlier that there was “very little” room for any changes.

“It's not nice to say 'I'm saving Italy and I'm massacring the population',” said Susanna Camusso, the leader of Italy's biggest union, the CGIL.

Camusso said the proposals were “a very heavy blow” to pensioners.