Lurking within Matteo Renzi's plan to cut Italian taxes and pay state suppliers are dangers the largesse will hamper efforts to trim the 2.09 trillion-euro (US$2.9 trillion) public debt.
Italy's newly installed prime minister won applause from labor unions with his March 12 blueprint to trim 10 billion euros from lower-income workers' tax bills and a sigh of relief from commercial businesses promised 68 billion euros in arrears payments from the government.
Yet investors and economists say the shifts can't be offset by this year's budget cuts, with gross domestic product projected to grow less than 1 percent. Even though borrowing costs dropped to record lows this year, the tax and spending measures could pare Italy's prized primary budget surplus and jeopardize a recovery after more than two years of recession.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
