More cuts approved
The Italian Cabinet confirmed yesterday that they would make savings in public expenditure of €26 billion over the next three years.
In the current financial year Prime Minister Mario Monti has announced that there will be further savings of €4.5 billion. Health and Public Administration will be the two areas most affected with around a 20% reduction in management staff and 10% reduction for more junior workers; provincial governments will also be affected.
The move will also mean that a planned 2% increase in VAT can be delayed from October until next year.
The savings will increase to €10.5 billion in 2013 and €11 billion in 2014.
The mandate for Mario Monti’s technocrat government expires in April 2013.