(see related)
Italian tax cuts equal to 80
euros per month for low earners will "probably have a neutral
effect on short-term growth, but they could have a positive
long-term effect if funded by streamlining and improving the
efficiency of spending," said Siim Kallas, interim EU
commissioner of economic affairs, on Monday.
The majority center-left administration of Premier Matteo
Renzi is hoping to spur growth through reforms including a
10-billion-euro tax cut that recently went into effect, giving
low earners the equivalent of 80 extra euros per month.
Earlier on Monday, national statistics agency Istat
predicted the cuts will produce "a minimal positive effect" on
consumer spending in 2014.
Renzi responded that the bonus was just "an antipasto".
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