House budget committee gives economic plan green light

P(ANSA) – Rome, April 16 – The Lower House budget committee approved the economic blueprint of Premier Matteo Renzi’s government Wednesday, sending it for a vote by Friday so the spending and tax-cut plan can be delivered to the European Commission before the end of the month. The plan includes 10 billion euros in income-tax cuts for low-earners, which is expected to be presented as a decree on Friday.BRBut controversy arose after Economy Minister Pier Carlo Padoan confirmed an earlier letter he sent to the European Commission, warning that Italy’s structural budget won’t be balanced for another year, until fiscal 2015-2016.BRPadoan explained that “the current year is a year of change,” with economic recovery still fragile, but added that reforms proposed by Renzi’s government will have a significant and permanent affect on the underlying structural budget.BRHe expressed optimism as well.BR”I would not be surprised if the results were better than expected now,” referring to the economic growth rate of 0.8% for 2014 forecast in the Economic and Financial Document (DEF) approved by Renzi’s cabinet last week.BRThe letter triggered questions from Renato Brunetta, the House Whip of the opposition Forza Italia, who asked Renzi if the tax-cut decree will still proceed on Friday.BRIn addition to the 10 billion euros in annual income-tax cuts, the DEF said those would be financed in part from cuts to spending identified by an ongoing spending review, including a 4.5-billion-euro savings this year.BRRenzi’s three-year blueprint foresees 26 billion euros in further public-spending cuts in 2015 and 2016.BR/P
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