Spending cuts czar discusses possible savings with Renzi
Government aims to cover new tax cuts with budget savings07 April, 15:13
The government is hammering out new spending cuts to cover tax cuts that are aimed at stimulating economic growth in Italy.
The government aims to reduce a regional business tax called the Irap, but has yet to determine by how much. The unpopular tax on gross revenues will take a 5%-10% bite out of turnovers this year. The government is also deciding on personal income tax deductions and the premier has pledged 10 billion euros will be cut from the tax bill of low income earners.
Renzi said in an interview that he thought Europe overall should be carrying out a similar budget review exercise.
"Europe must also carry out a spending review," Renzi said in interview with public broadcaster Rai television.