Deputy Premier and Interior Minister Matteo Salvini has said Premier Giuseppe Conte's government could collapse and early elections be called if the 2020 budget law does not features big tax cuts.
"We have a clear idea that this budget is important and everyone should have courage," the League party leader said in an interview in Friday's Corriere della Sera. "Otherwise we'll go and ask the Italian people for courage". Salvini wants the government to bring in a two-tier 'flat tax' on incomes to give the sluggish Italian economy a "positive fiscal shock". But Economy Minister Giovanni Tria is reportedly skeptical as he is concerned about the impact it would have on the deficit and cause tension with the European Commission about Italy's public finances to flare up again. On Wednesday statistics agency ISTAT reported that Italy's GDP was flat in the second quarter with respect to the first.
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