Italy to submit budget to the European Commission
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Last Wednesday the Italian Government has approved a number of measures that will allow Italy to keep
the budget deficit inside the 3%. These measure worth 1.6 billion are comprised of 1.1 billion
in spending cuts by government and local authorities and 500 million in the sales of public buildings.
The target of the Government is a 2.9% budget deficit vs. a 3% of 2012.
The Government objective remains to cut spending and taxes at the same time with emphasis on cutting
payroll taxes to increase competitiveness and improve salaries.
In my view Italy benefits from several competitive advantages (notably the made in Italy) but has to find
a way to maintain and enhance competitiveness particularly for small and medium size companies where
access to credit can improve.