NEWS » Italy to approve The Austerity Law?
Italy to approve The Austerity Law?
Italy Austerity Law
Right now, Italy is facing one of the most difficult times in its history. The future of the country seems now to be dependent on the approval of The Austerity Law and on the resignation of the Prime Minister Silvio Berlusconi. Those measures would help to reassure the European Union of Italy’s capacity of meeting up to the promises made in order to prevent Italy’s default. Italians’ lives are going to change dramatically in the next months, even without taking into account Italy’s bankruptcy which would involve certainly an even scarier scenario.
The measures of the amendment to The Austerity Law, scheduled for approval on Saturday, are going to affect Italians lives mainly through cuts to the public expenditure and increasing the pension age. The measures have already been strongly criticized by the Italian opposition parties which claimed that the government should tax properties and residents with assets, cut the costs of politics and take measures against tax evasion, rather than penalise only the lower middle class. According to others, the measures are not significant enough to rescue the collapsing Italian economy. The most controversial measures have been so far the ones on the dismissal law and on pensions.
Let’s have a look to the main points of the amendment to the austerity law.
From 2026 the pension age will be 67 years old.
Italians are going to pay more taxes, for example on Petrol and diesel.
People affected by the devastating earthquake in Abruzzo on the 6th of April 2009 will start paying taxes again but less than in the rest of the country.
There are also some liberalization measures, for example a reform of some professional corporations.
Surplus staff in the civil services that have not been able to relocate, or who have refused a transfer to another administration, will be entitled to a layoff, with 80% of the salary that is paid for two years.
Another measure will be the sale of public properties and agricultural land to mutual funds or private companies.
To promote youth employment, beginning in January 2012, companies with a maximum of nine employees will be granted reduction of taxes for employing youth in apprentice positions. These youth apprenticeship contracts are to be concluded before 31 December 2016.
The measure also provides incentives for employing women in part-time and telecommuting work, hoping to decrease the unemployment rates among women.
Families with new born babies will be still entitled to some little subsidized rates loans as disposed before.
These are only some of the measures which compose the Austerity package. The final approval is still very controversial. The only certainty is that Italians are going to tighten their already tight waist belts.