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No new budget but new measures coming, says Renzi gov't

Italian government will cut spending to raise cash for tax cuts

06 March, 14:48
No new budget but new measures coming, says Renzi gov't (ANSA) - Rome, March 6 - Premier Matteo Renzi's government will not pass a "corrective budget", despite European Commission concerns government sources said Thursday. The comments came after the European Commission on Wednesday said Italy's 2014 budget, passed by Renzi's predecessor Enrico Letta, was insufficient to correct the country's "excessive macroeconomic imbalances", including high debt and low competitiveness.

Renzi and his finance minister, former OECD chief economist Pier Carlo Padoan, maintain they will implement numerous reforms to labour and income taxes while boosting job creation.

By cutting as much as 5-billion euros annually from various spending programs, the government could raise enough to finance labour tax cuts, Padoan told newspaper Il Sole 24 Ore in an interview published Thursday.

He also pledged that Italy will maintain a debt-to-GDP level no higher than the 3% mandated by the EU.