Brussels, 17/09/2013 (Agence Europe) - In a speech to the Italian Senate on Tuesday 17 September, Euro Commissioner Olli Rehn warned of the dangers of political uncertainty in Italy.
Reuters reports that the Commissioner said that “particularly in Italy, where the economy is weak, political uncertainty is a brake on investments.'
The right-wing 'Il popolo della liberta' party, headed by Silvio Berlusconi, is threatening to leave the coalition government if businessman and former prime minister Berlusconi is thrown out of politics after being found guilty of tax fraud. A special committee of the Italian Senate will decide on this on Wednesday.
Rehn criticised the Italian government for scrapping the IMU property tax on the express request of Berlusconi's party (see EUROPE 10911). Rehn commented: “We have recommended switching taxation from production onto property and consumption, so the abolition of the IMU goes in the opposite direction.'
Rehn and the Italian prime minister, Enrico Letta, discussed how the flexibility allowed under the stability and growth pact could be utilised in practice for some types of investment in Italy since its exit from the excessive deficit proceedings (see EUROPE 10881 and 10880). (MB/transl.fl)