Spending cuts czar discusses possible savings with Renzi
Government aims to cover new tax cuts with budget savings
07 April, 15:13
(ANSA) - Rome, April 7 - Italian Premier Matteo Renzi on
Monday was huddled with spending review chief Carlo Cottarelli
and economist MP Yoram Gutgeld to debate possible budget
measures on the eve of presenting a tax and spending bill to
cabinet.
Renzi was also meeting with Economy Minister Pier Carlo
Padoan to go over the budget bill set to be approved by the
executive on Tuesday.The government is hammering out new spending cuts to cover tax cuts that are aimed at stimulating economic growth in Italy.
The government aims to reduce a regional business tax called the Irap, but has yet to determine by how much. The unpopular tax on gross revenues will take a 5%-10% bite out of turnovers this year. The government is also deciding on personal income tax deductions and the premier has pledged 10 billion euros will be cut from the tax bill of low income earners.
Renzi said in an interview that he thought Europe overall should be carrying out a similar budget review exercise.
"Europe must also carry out a spending review," Renzi said in interview with public broadcaster Rai television.
