Berlusconi backs down


Silvio Berlusconi and his political allies have backed off from two major initiatives in their austerity package, the special tax on high earners and the decision to scrap small town councils. The two initiatives would have raised and saved millions of Euros but ran into difficulties not least when Italian footballers went on strike because their clubs were insisting that they should pay the extra tax and not the clubs.

Berlusconi says that this decision will not affect the €45.5 billion austerity measures.

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