The Easter gift for less well-off workers will come out of today's Council of Ministers. Renzi will approve the decree that cuts the 2014 personal income tax by 80 euros per month for incomes up to 1.500 euros net per month. Until late at night Palazzo Chigi had workers last night in the frantic search for coverage of the expenditure in order to overcome the objections of the European Union and the Court of Auditors.
For now, the tax cut. which will affect an audience of 10 million employees plus another 4 million incompetent, is valid only for 2014. But Renzi plans to get the Council of Ministers to approve a provision of the decree which includes a three-year clause, i.e. which commits the Government to confirming the tax cut for 3 years.
Difficult to square the circle. However, the prime minister himself has categorically ruled out that spending coverage can be found by cutting tax deductions for medium-high incomes. Instead, an attempt will be made to rake in the necessary resources through a reduction in subsidies to companies, a careful review of the F35 program, a selective tightening on health care spending.
