The European Commission said
Wednesday that it has given the green light to the Italian
government's 2023 draft budget while picking fault with several
aspects of the package, including pension-system changes and
greater leeway for cash payments.
"Overall, Italy's updated Draft Budgetary Plan is in line with
the Council Recommendations of July 2022," the Commission said.
"Italy limits the growth of nationally financed primary current
expenditure and it plans to finance public investment for the
green and digital transitions, and for energy security".
But it wrapped Rome for failing to "adopt and appropriately
implement the enabling law on the tax reform to further reduce
taxes on labour and increase the efficiency of the tax system".
It also said that the budget features "measures that are not
consistent with the structural part of previous fiscal
recommendations, namely in the area of pensions and tax evasion,
including on the compulsory use of e-payments and the legal
thresholds for cash payments".
The budget raises the limit for cash transactions from 2,000
euros to 5,000 and enables retailers to refuse to accept card
payments for amounts of up to 60 euros.
Opposition parties have said both measures will facilitate the
use of cash and discourage traceable electronic payments, which
could make tax evasion easier.
The government is reportedly considering bring the amount up to
which retailers can demand cash payments down to 40 euros.
The budget also gives some people the possibility to retire
early by bring in the
'Quota 103' system.
This makes it possible for people to start claiming their State
pension at the age of 62 if they have 41 years of
social-security contributions.
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