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Matteo Renzi lower taxes and promises to abolish the Italian Senate

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Matteo Renzi lower taxes and promises to abolish the Italian Senate

Matteo Renzi: "We have never seen a set of reforms as big."

REUTERS / Remo Casilli

The new head of the Italian government, Matteo Renzi, 39, who took office two weeks ago, presented on Wednesday its measures to take to Italy "good turn".

Decrease in income tax

The measure that has most caught the imagination was the announcement with a lot of "slides" (forms projected on a screen) a decrease in income taxes for 10 million people, representing a cost of EUR 10 billion for the state, "fully funded", says Renzi. "For us, it is obvious that put in the pockets of Italians 1,000 euros net more (over a year) will help the consumer: it is a measure of attention, equity, a measure of historical significance," he announced Prime Minister, stating that such measures benefit the poor and the middle class.

Criticizing the "controversy" on the financing of these measures, he assured that Italy would meet the European criteria of 3% for the ratio between deficit and GDP. 10 billion will be covered by "savings on spending (public), general macroeconomic conditions (lower interest payable on the debt of Italy, ed), no tax increases," he guaranteed .

Reform of the electoral law

"We have never seen a set of reforms as impressive," said the youngest leader of the European Union, which was initially welcomed the adoption of the morning by the Chamber of Deputies of reform of the electoral law. "It is a political turning point: there will be large coalition governments (left-right like the present, ed), governments will last five years and there will be more micro-parties blackmail" .

This reform - the first of five planned in the first 100 days of government - provides a bonus assuring the House majority to any party or coalition exceeding 37% of the vote.

Mr. Renzi also announced the filing in two weeks of a bill to abolish the Senate in its current form and relegated to the rank of representing regions. True to its image of flying, he said he was playing his future on this constitutional reform, "If I can not, I will consider not only my government experience as complete but my political career." According to his mantra, politicians "must lead by example" and that reform would mean "315 parliamentarians and much less wages."

Money for companies

Measures are also provided for business: 10% reduction of the business tax (IRAP) funded by an increase in the taxation of financial annuities (from 20 to 26%), additional funds to guarantee loans to SMEs, suffer greatly from the crisis, a drop in the cost of energy for businesses. The government will also inject the cold cash (68 billion euros by July) accelerating the repayment of debts of governments to their private providers.

Meanwhile, Matteo Renzi announced measures to revive the labor market while Italy has one of the highest unemployment rates in Europe (12.9%), especially among young workers aged 15-24 years, with a record 42.4% in January. The government will reorganize the entire system of social benefits on the principle of a generalization of unemployment compensation. The fixed-term contracts may be extended up to 3 years (currently up to one year) and learning will be encouraged.

Another key measure: € 3.5 billion budgeted and "immediately spend" for the renovation of schools, many of which are in very poor condition. "The school is the place where we must collectively start to emerge from the crisis," he said.

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