Friday, July 1, 2011

Italian cabinet approves austerity plan



Italian Prime Minister Silvio Berlusconi

Source: Press TV
http://www.presstv.ir/detail/186991.html

The Italian cabinet has adopted an austerity plan aimed at protecting the country from Greek debt crisis and avoiding the budget deficit in 2014.

The measure approved on Thursday, which includes a tax hike on financial transactions, a cut in ministers' pay and an extension of the current freeze on public sector salaries and hiring, aims to save EUR 47 billion and reassure investors, the Press TV correspondent in Rome reports.

The budget cuts of EUR 47 billion will be implemented over 4 years, EUR 1.5 billion this year, EUR 5.5 billion next year, EUR 20 billion in 2013, and another EUR 20.5 billion in 2014, the government spokesman announced in a press conference on Thursday.

The government is also expected to reduce income tax and crack down on tax exemptions and evasion.

Parliament approval is needed before the austerity plan takes effect.

Moody's and Standard & Poor's rating agencies have warned the country's credit rating could be downgraded because of its inability to pass reforms to bring down its debt mountain and the country's low growth rate, unless Rome takes proper measures to cut its public deficit.

By 2013, there will probably be a new government which will face the EUR 40 billion budget cuts in 2013 and 2014, which will certainly harm a lot of families in Italy.

Prime Minister Silvio Berlusconi's government has said that it is going to reduce the budget of government ministries and local authorities plus a reduction in tax breaks for companies and families, but there will be no cuts on education, research and culture.

The budget is the latest test for Berlusconi, who suffered heavy defeats in local elections and four referendums over the last month. His approval ratings have been sinking over a series of corruption and sex scandals, and a stagnant economy.

No comments:

Post a Comment

I'll be right with you.

Russia Today (Live)

World News 2017

Current Affairs - Important Interviews – 2017

Debate – Global Issues 2017

Important Information 2016 - 2017

South Front Military Review 2017

Syria - News 2017

Yemen News 2017

Turkey News 2017

Ukraine News 2016 - 2017

Palestine & Israeli Crime 2017

Iraq News 2017

Important Documentaries

Viewpoint, Discussion & Opinion - 2017

Abby Martin – Empire Files

US News 2017

Iran News 2016 - 2017

Global Economic News 2017

Egypt News 2016 - 2017

Libya News 2016 - 2017

Bahrain News 2016 - 2017

Sheik Imran Hosein - Islamic Eschatology

George Galloway – Comment & Opinion

The Words and Actions of Ken O'Keefe

English FA Cup 2016 – 2017

New Age Weather

Space News

Music for the Revolutionary Mind

Global Revolution LIVE!

Watch live streaming video from globalrevolution at livestream.com

Japan’s 3 Nuclear Meltdowns STILL ongoing (News Censored)