Italy's Silvio Berlusconi: 'Our hearts are bleeding'

Italy has announced a fresh round of austerity measures after an emergency cabinet meeting.

The 45bn euro ($64bn: £40bn) plan aims to balance Italy's budget by 2013, a year earlier than had been planned by slashing public spending and jobs.

Prime Minister Silvio Berlusconi said Italy was not alone in facing the challenge to reduce its debt.