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Italy also took austerity measures to reduce its spending as a result of the growing economic panic in the eurozone.

The government plans to cut down the public sector pay and pensions and the local government spending, as well as freeze new recruitment. It will also take measures to prevent tax avoidance. The result the government hopes to achieve is reducing the deficit from 5.3% down to 3% by 2012, so that international investors will remain confident in the country’s economy.

Greece, Spain and Portugal have done similar reductions already. The austerity plan, however, was not accepted with approval by the public in the sectors that will be hit.

In a protest in Rome, Simone Casadei, a worker, said, “The sector of public research has already paid its toll and suffered cuts in the past. So we are asking for our sector to be left out of the new budget cuts."

According to him, the money should be obtained through stricter rules on tax evasion. Casadei added that the solution cannot be always gained “from the same sources, that is workers and pensioners.”

UK and Denmark also announced their plans this week to cut on spending.