NEWS » The new economic measures of Monti's government

The new economic measures of Monti's government

The new economic measures of Monti’s government

The new government is speeding up to present its new economic measures at the European Union council on the 8th of December.

To balance its budget, the government is ready to launch a corrective action of the public accounts for 30 billion in 2 years. The decree of public accounts will be ready by next week for the European council of the 8th of December to make it effective from the beginning of the new year.

Monti wants to present a well balanced group of measures to close the gap of public accounts, with the revision of the tax burden on real estate, the reintroduction of ICI (a council tax on property on the house of residence)  and the revaluation of real value of the house, if not, with some other form of taxation on capital, and asset disposals. Monti also speaks about a reform of professional associations to help the economic growth.  

However, the complicated reform includes very painful cuts to the pension system and to the social assistance. From September 2012 there will be cuts to the tax benefits (5 percent in 2012 and 20 percent from 2013).

The deductions for pensioners and other family responsibilities also have to be considered. For this reason there is pressure on the government for the introduction of a mini tax on asset values and goods.

 The trade unions Cgil e Cisl say yes to ICI but only after a tax has been put on properties and real estate. 

According to An AP-GfK pol 93 percent of Italians consider cutting the country’s huge public debt a top priority.

The two main reforms to cut the public spending and boost the economy, the reform of labour laws (which would make it easier to fire workers and the raising of the retirement age to 67) are proving to be unpopular, being only a quarter of Italians in favour of them.

 Most Italians have a favourable view of the European union and 76 percent think Italy should stay in the Euro zone.

Italians seem to have mixed feelings towards president Monti. 

On one hand Monti is held in High consideration by most Italians (67 percent).

On the other hand 32 percent of the population think that things will not change very much and this government of bankers, academics and corporate executives won’t be able to get Italy back on its feet.

Let’s hope for a better future for the Italians.

Giulia Lombardo

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