According to a report in the Financial Times, the European Commission will today allow the Italian government until 2007 to bring its budget deficit under control.
The EC expects Italy's budget deficit to hit 4% in 2005, rising to 5% in 2006, and revealed earlier this month that the Italian authorities used faulty statistics to cover up breaches in 2003 and 2004 of the 3% of GDP ceiling set by the Stability and Growth Pact.
Speaking to the FT earlier this week, unnamed officials revealed that the Commission will today officially declare that Italy is in breach of the Pact, and will give the government two years to correct the situation.
The Italian authorities are currently mulling several tax proposals aimed at reining in the burgeoning deficit, and were recently forced to postpone the phasing out of a regional business tax known as IRAP until next year, because agreement could not be reached on how the tax cut should be funded.
.Tags: Italy | Italy
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment