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MNI: Italy's 7-Year Adjustment To Lean On Spending-Sources

Italian government sources talk to MNI about future fiscal adjustment.

Italy’s seven-year fiscal adjustment plan to be presented to the European Commission in September will lean most heavily on spending cuts, though promises to support pensions and reduce taxes will also be trimmed back in a bid to restore a primary surplus, officials close to Finance Minister Giancarlo Giorgetti told MNI.

While the ministry is facing stiff internal resistance from departments trying to fend off cuts, Giorgetti wants to put an end to the recent practice by Italian governments of delaying structural reform by approving temporary one-year measures to reduce taxes and buoy pension spending, the sources said.

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Italy’s seven-year fiscal adjustment plan to be presented to the European Commission in September will lean most heavily on spending cuts, though promises to support pensions and reduce taxes will also be trimmed back in a bid to restore a primary surplus, officials close to Finance Minister Giancarlo Giorgetti told MNI.

While the ministry is facing stiff internal resistance from departments trying to fend off cuts, Giorgetti wants to put an end to the recent practice by Italian governments of delaying structural reform by approving temporary one-year measures to reduce taxes and buoy pension spending, the sources said.

Keep reading...Show less