ROME—Italy's new government unveiled austerity measures that European leaders and markets hope will form the first part of a wider European deal this week and mark a turning point in the battle to save the euro.

Italian Prime Minister Mario Monti, in his first test since taking office two weeks ago, outlined a three-year plan made up of €30 billion ($40.2 billion) in tax increases, spending cuts, pension overhauls and growth-boosting measures.

The...