No balanced budget until 2016
Italy’s parliament approved the three year Economic and Financial Document (DEF) presented to it by Prime Minister Matteo Renzi’s government yesterday. The Senate passed the budget by 156 to 92 and the Chamber of Deputies by 348 to 143.
The budget will now be sent to the European Commission who will likely be unhappy that Italy has announced that it will be delaying balancing its budget until 2016, the third time the target has been moved back since 2010. Economy Minister Pier Carlo Padoan said that the economy was showing signs of recovery but was still fragile.
The budget contains €4.5 billion in public spending cuts this year with a further €26 billion expected in 2015/2016. Much of the balance will be found through an anticipated sale of public assets and disinvestments of around €12 billion each year.
The budget also allowed for €10 billion in income tax cuts for low-earners.
Elsewhere, the DataMedia Ricerche Institute published a 15th April poll showing that Renzi’s Democratic Party has improved in the polls to 32% support, up from 25.42% in the 2013 general election.