Italy

More spending cuts at ministries


Published

Prime Minister Mario Monti has announced that the government intends to make up to €4.2 billion in cuts within state spending over the next six months in an effort to avoid raising VAT from 23% to 25% in October.

The task of finding the savings has been given to Enrico Bondi an Italian turnaround expert from the private sector.

Meanwhile, Italian police are reported as having collected up to €6 billion in unpaid taxes in the first four months of this year.

Inevitably the austerity drive and labour reforms being introduced by the government has led to a fall in their popularity. An IPR Institute poll for La Republica newspaper shows that Mario Monti’s personal popularity has dropped from 55% to 51% in the last month.

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