Brussels, 30/04/2013 (Agence Europe) - Taking note of the announcement by the new Italian coalition government to ease or even scrap the Italian tax on family homes, the European Commission said on Tuesday 30 January that Italian Prime Minister Enrico Letta has expressed his desire to respect the budget commitments for 2013 undertaken by the previous government.
“The targets agreed remain those that have been agreed. Now government aid clearly intends to respect targets, to continue to work to abrogate the Italian excess deficit programme”, said a spokesman for Euro Commissioner Olli Rehn. On the question of easing or scrapping the tax on the family home, the spokesman said: “How they plan to implement new measure remains to be seen. We are waiting to see the details”.
Just before the end of the Monti government, Italy negotiated with Commissioner Rehn's department the option of Italy paying €40 billion in outstanding invoices to companies in 2013 and 2014 without the payment jeopardising the end of the excess deficit proceedings (see EUROPE 10821). The agreement was aimed at allowing Italy to keep its public deficit at 2.9% of GDP. The easing or scrapping of the tax on the family home might mean that an extra €2 billion to €8 billion need to be found.
Letta will meet with the president of the European Commission, José Manuel Durão Barroso, in Brussels on Thursday 2 May. On Friday, the Commission will be unveiling its spring economic forecasts. (MB/transl.fl)