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Renzi under fire over pensions delay

Renzi under fire over pensions delay

Premier says cabinet will approve budget bill Thursday

Rome, 12 October 2015, 19:57

ANSA Editorial

ANSACheck

- ALL RIGHTS RESERVED

-     ALL RIGHTS RESERVED
- ALL RIGHTS RESERVED

Premier Matteo Renzi came under fire Monday for delaying changes to a controversial and unpopular 2011 pension reform to allow people to retire earlier on lower pensions.
    The criticism came as the Italian cabinet started looking at the 2016 budget bill, which Renzi said it would launch on Thursday.
    Susanna Camusso, the leader of Italy's largest trade union federation CGIL, said that Renzi was wrong to delay changes to Italy's pension system. On Sunday Renzi announced that measures to add flexibility to the pension system to enable people close to retirement age to quit work would be passed next year and not in the 2016 budget law. "It's wrong to delay the decision and consider it an adjustment, offloading the burden onto the workers," said Camusso. Renzi told State broadcaster RAI on Sunday that it was necessary to wait on the pension moves until 2016 "when the numbers will be clearer". He said otherwise there was a risk that any action could actually cause "damage". The government had said that it would address the unwanted aftereffects of a 2011 pension reform, which raised the retirement age and increased the years of contributions needed to take early retirement, in its 2016 budget law.
    The 2011 law, among other things, created the problem of the 'esodati' (exiled ones) - people who were left without pay or a pension after leaving jobs, as under the old rules, they were eligible to retire.
    There have been six interventions on behalf of the 250,000 or more esodati but an estimated 50,000 have still not been helped.
    On Sunday Renzi also said that the famous 80-euro-a-month tax bonus he introduced last year for low earners will no longer feature in people's pay packets, but will instead be transformed into an extra form of tax deduction. He added that the 2016 budget law will feature a move to try to reverse the brain drain by bringing 500 Italian university professors currently working abroad back home.
    The premier confirmed that the IMU property tax and the TASI local-services tax will be scrapped for household's primary homes in the budget law and that the IRES business tax will be cut. "We are the first government to really cut taxes," Renzi said. The budget will also feature measures to help some one million Italian children living in poverty. Italy's municipalities will get "full compensation" for the revenue shortfall they will suffer when the government cuts IMU and TASI in the 2016 budget, the head of the municipalities' association ANCI, Turin Mayor Piero Fassino, said Monday. It was up to the government to establish "how and where it will find the resources", he said.
    Fassino said ANCI and the government had had a "positive" meeting on the budget Monday.
    In other economic news Monday the INPS social security and pensions agency said there were 790,000 new permanent full-time hires in the first eight months of the year using the government's three-year labour tax break for employers.
    There were 53,002 such new hires as of August, INPS said.
    As well, 319,000 more steady job contracts were awarded in the first eight months of 2015 than in the same period last year. In the private sector new steady contracts numbered 1,164,866, about 90,000 more than the number of contracts that ended.
   

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