Visco calls for labour tax wedge cut (2)

(ANSA) - Rome, May 31 - 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".