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Economy turned corner says Padoan

Economy turned corner says Padoan

Govt to quit if Renzi loses Oct referendum says minister

Rome, 01 June 2016, 15:22

ANSA Editorial

ANSACheck

- ALL RIGHTS RESERVED

-     ALL RIGHTS RESERVED
- ALL RIGHTS RESERVED

(supersedes previous)Economy Minister Pier Carlo Padoan told Sky TG24 news Wednesday Italy's economy has turned the corner but the government will continue cutting taxes. "I'm not worried - on the contrary, I'm encouraged," he said. "Growth is accelerating, and will rise next year".
    "The Italian economy has turned the corner... The government will do more, and will continue cutting taxes. We commit to... deactivating the safeguard clauses". Deficit reduction and bringing down the debt-to-GDP ratio "remain the objective", he said.
    As well, Padoan said introducing 'flexibility' to a 2011 pension law so people can retire earlier on less money is "important". He added the effects on the labour market would have to be gauged and suggested the issue could be addressed "with the contribution of the banks".
    The government is "working on several hypotheses" for the privatization of Ferrovie dello Stato (FS) railway company and the plan is to launch it on the market sometime "in the next 18 months", Padoan also said.
    In January, he told lawmakers that partially privatizing FS is the only way to "attack its serious shortcomings". The government reportedly plans to sell a stake of around 40% in FS.
    Asked about an October referendum on Premier Matteo Renzi's constitutional reform law, Padoan said the whole government will quit if a 'no' vote prevails. He added the reform would have "a huge impact on the economy by making politics more effective". He added: "Italy needs a stable time frame". Renzi has staked his political future on the referendum on the reform, which turns the Senate into a leaner, regionally based body with limited lawmaking powers. The idea is to end decades of political gridlock.
   

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