Italy to get cash boost with PM Renzi's giveaway budget

Italian Prime Minister Matteo Renzi has already revealed much of the content of a package he says will contain up to 27 billion euros worth of tax cuts and new investment to foster growthBuoyed by a major breakthrough in his wide-ranging reform programme, Italian Prime Minister Matteo Renzi on Thursday unveils an expansionary 2016 budget designed as a shot in the arm for a still-sickly economy. The youthful premier has already revealed much of the content of a package he says will contain up to 27 billion euros worth of tax cuts and new investment to foster growth, despite concerns in Brussels that the giveaway will slow the rate at which Italy is reducing its 2.2 trillion euro debt mountain. The new budget will be approved by the cabinet and simultaneously sent to Brussels, where the European Commission will assess its compatibility with the EU’s Stability Pact debt and deficit rules, potentially demanding revisions before it becomes law.

Share this article