But despite cutbacks in Government spending and other austerity moves, the economy grew by only 1.8 percent last year and is now expected to contract.

That retreat threw into doubt the Government's ability to make politically difficult austerity moves and led to an announcement on Sunday by Finance Minister Thanong Bidaya that he would resign.

In the end, added Ms. Willard of Donaldson, Lufkin, the Government's austerity move "will boomerang onto the elderly, who will be left with less complete coverage and higher medical bills."

Space and Science Science and technology escaped austerity moves, as the Administration asked for $21 billion in nonmilitary research and development projects, 6 percent more than this year.

The austerity moves have even found their way down to the level of office supplies.

With severely diminished reserves, almost no lending and depositors terrified of the next austerity move, the banking system has virtually come to a standstill.

Air controllers, teachers, civil service employees and tens of thousands of public transportation workers are expected to follow with a 24-hour strike on Thursday, also in protest against the Government's austerity moves.

Earlier this year, austerity moves advocated by the International Monetary Fund and the World Bank began to be felt.

The austerity moves have been described to the public as "the last alternative" before turning to the International Monetary Fund.

The Italian government won approval for €54bn ($73 bn) in austerity moves but Draghi says it must act more quickly to implement reforms that can spur growth.