Italy to cut spending and avoid VAT rise

The Italian government under Mario Mionto presented on the 30 April 2012 its long-awaited budget review followed intense pressure from business, politicians and the public to shift the burden of austerity away from heavy taxation towards cuts in public spending, totalling half of Italy’s economic output.

Italy will cut public spending by €4.2bn in 2012 to keep Italy on course to meet its budget deficit targets rather than resort to a planned increase in value added tax that would risk deepening the recession.

ESO: Background information: Italy unlikely to balance budget by 2013 http://www.europeansources.info/record/italy-unlikely-to-balance-budget-by-2013/

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