> ANSA English > News

Economy ministry vows to tackle high labor, income taxes

'Govt will spur competitiveness'

05 March, 16:20
Economy ministry vows to tackle high labor, income taxes (see related) (ANSA) - Rome, March 5 - Italy's economy ministry vowed to tackle high labor and income taxes on Wednesday. "The competitiveness of the Italian economy is limited today by high labor costs and income taxes. It's a problem that the government is going to face with determination," said a statement from the Treasury in response to calls from the European Union to increase competitiveness. Italian Premier Matteo Renzi has said he intends to cut at least 10 billion euros in labor, business and income taxes While light on detail, the young premier says that the lost income would be made up by reorganizing public finances.

The Treasury also responded to concerns about rising public debt. According to the European Commission, Italy's debt as a percentage of gross domestic product will increase to 133.7% this year but then begin to fall as economic growth improves.

"The evolution of public debt in relation to GDP comes mainly from the denominator of the equation, that is, from modest growth in the years preceding the crisis (followed by) a deep recession," said the economy ministry. (photo: Economy Minister Carlo Padoan)