Bank of Italy Governor Ignazio
Visco called for public investments and cuts in the labour tax
wedge - the difference between workers' take-home pay
and the total cost to firms to employ them - to consolidate the
recovery.
"It's necessary to relaunch targeted public investments
for a faster, lasting recovery," Visco said, "and a further
reduction in the tax wedge on labour".
The governor also said that incentives for firms to invest
in innovation should be reinforced and there should be greater
government financial support for the incomes of poor households.
He added that, while the room within the budget is
limited at the moment, it is still "possible to plan the
implementation of this measures over a broader time span".
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