Europe goes on spending cuts and raising taxes to cut debt.

Who knew having a welfare state and out of control public spending could lead to this mess? Its a shocker.

The Italian government has approved austerity measures worth 24 billion euros (£20bn; $29bn) for the years 2011-2012.

The announcement makes Italy the latest eurozone country to announce cuts in an effort to reduce the gap between spending and earnings.

The UK and Danish governments also this week announced plans to curb spending.

Italy will take measures to reduce public sector pay and will put a freeze on new recruitment.

Public sector pensions and local government spending are also expected to be hit.

Added to these, a clampdown on tax avoidance is also planned.

The cuts are equal to some 1.6% of gross domestic product (GDP).