Italian parliament approves EU fiscal compact

ROME, July 19 (Reuters) - The Italian lower house voted on Thursday to approve the European Union's fiscal compact, giving final parliamentary clearance to the accord to toughen budget rules, following a Senate vote last week.

A separate vote on the European Stability Mechanism, the euro zone's new bailout mechanism, is due shortly, completing Italy's approval of two of the main elements of the bloc's new crisis arsenal.

Implementation of the ESM, which Italy hopes may be used to steady bond markets and help contain sharp jumps in its borrowing costs without the need for a full bailout, will depend on a decision by Germany's Constitutional Court in September.