The Italian government has approved the release of €5.5 billion ($7.1 billion) from state coffers to fund strategic infrastructure projects. A government statement said the funds approved Friday would pay for railway lines in the poorer south, public housing and school projects and environmental safety measures.

The money is on top of €4.8 billion approved in December for highway projects and high-speed railways. Premier Mario Monti has combined the economic development and infrastructure ministries to ensure strong coordination of projects that can promote economic growth. The Cabinet meeting in Rome is expected to approve a liberalization program later Friday.