Italy's budget gets vote of confidence a day before its deadline

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Italy’s parliament has passed the government’s budget a day before its deadline as it won a vote of confidence by the Chambers of Deputies.

The policies which until last week were at headlock with Brussels are somewhat of a success, as the government will introduce a reduced retirement age, a new income support scheme along with tax cuts for self-employed, higher tax on banks, insurers and gambling companies.

It has also introduced a partial amnesty that allows low-earners to settle tax disputes with the authorities by paying a limited sum.

Although few people protested in Rome, the new government still has 60% of popularity according to the latest polls and although the deal struck in Brussels, which suggests that Italy will lower its GDP growth for 2019 to 1% from a previous 1.5%, may seem unthinkable PM Giuseppe Conte is confident the budget will finally give Italy’s economy a much-needed lease of life.

Bond yields meanwhile have reached a three and a half month low just this week while the financial sector has welcomed the new policies.



Source: Smart Trend Team