The European Commission has welcomed Italy’s announcement of a revised austerity package, as the senate approaches a vote on the measures this evening.

Yesterday, Italy's government announced a tightening of the roughly €45.5 billion package, including bringing forward the increase in the retirement age for women in the private sector to 2014.

A further lift in VAT and tax on higher earners were also announced.

In a statement released today, the commission said the changes to the package confirm the determination of Italian authorities to meet the agreed targets of deficit and debt reduction, while contributing to tackle the “deep rooted structural weaknesses” of the Italian economy.

“The decision on retirement age is also an important signal. The confirmation of the decision to introduce in the Constitution the principle of a balanced budget and the abolition of provinces are decisive improvements in the institutional framework of Italy, and contribute to ensure budgetary discipline on a permanent basis,” the commission said.

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