The Monti government hasn't done enough to tackle tax evasion and undeclared work. This is what we read in the draft report of the European Commission which will be released next Wednesday. The text was anticipated today by the Financial Times, with the clarification that the 29 pages of analysis and the six pages of attached recommendations can still be modified.
The British newspaper highlights how the draft shows corrections and deletions aimed at mitigating some of the findings contained in the report, such as the passage which states that "no important measures have been taken to deal effectively" with the spread of undeclared work, or the sentence stating that “insufficient progress has been made to recover evaded taxes”.
However, adds the FT, it is also clear from the undeleted parts of the document that "undeclared work" and "the underground economy", as well as "significant tax evasion" are the points on which the European Commission invites the Monti government to use.
Despite the harshness of the tones, the FT points out, the report on Italy will not be the toughest. According to some sources interviewed by the economic daily, Spain will end up under the Commission's magnifying glass.
