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Spending review, Cottarelli: "New cut in the tax wedge possible as early as 2014"

Cottarelli added that "in early March" the first suggestions on where and how to cut will arrive - The Commissioner specified that new ideas are coming from meetings "with general directors of ministries and ministers": public managers must become "money managers public and must have greater management capacity”.

Spending review, Cottarelli: "New cut in the tax wedge possible as early as 2014"

“Already in 2014 there will be the possibility of reducing waste, and therefore taxation on labour. It takes time to study the subject closely, but we shouldn't wait for 2015, something could happen sooner”. The extraordinary commissioner for the expenditure review, Carlo Cottarelli, said this today to the microphones of "Unottina" on Rai1.

Cottarelli added that the first suggestions on where and how to cut will arrive "in early March". The general objective remains that of reducing spending by 32 billion euros by 2016. The Commissioner specified that new ideas are coming from meetings "with general directors of ministries and ministers": public managers must become "managers of public money and they must have greater management capacity, however being subject to ex post accountability. There will have to be ways to reward those who do well and penalize those who do not do well”. 

As for the municipal companies, "the most difficult thing is to distinguish those that produce services from the boxes that are not of much use - concluded Cottarelli -, only to spend money".

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