Brussels, 30/08/2013 (Agence Europe) - The European Commission is waiting to find out the measures that the Italian government intends to take in order to make up the shortfall left due to the withdrawal of the IMU property tax - a withdrawal demanded by the government coalition party led by Silvio Berlusconi.
This decision shows that, “politically”, the Italian authorities are capable of taking decisions but, from a budgetary point of view this budgetary measure will have to be compensated, the European Commission has said. The Commission wants the measure to be compensated through a cut in public spending, but this is not what the Italian government plans, the Commission regrets. According to Italy's Finance Minister Fabrizio Saccomanni, the shortfall to be made up is around €3 billion.
Favouring short-term political stability, Enrico Letta's government has decided to withdraw the IMU property tax that was introduced by the previous government of Mario Monti. This withdrawal was the condition imposed by Berlusconi (whose judicial troubles could signal the end of his political career) for his Christian Democrat party, Il popolo della libertà, joining a government coalition with the Centre-Left Democrat party.
During the first half of the year, Italy left the excessive deficit procedure, with the European Commission forecasting a budgetary deficit for Rome below 3% for 2013, despite the payment of arrears for €40 billion in 2013 and 2014. (MB/transl.fl)