February 24, 2014

Will Italy Accept Renzi's Reforms?

Milton Ezrati, The National Interest

The Associated Press

Renzi’s rhetoric certainly sounds encouraging to pro-reform elements in Italy and elsewhere in Europe. He has hit on well-known elements advanced by Monti, recommended by the Organization for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF), and successfully implemented in Germany a decade ago. His program would: (1) improve the competitiveness of Italian business and encourage hiring as well as business expansion by cutting payroll and business taxes, the so-called tax wedge between the cost to business of an employee and a workers’ take-home pay; (2) cut wasteful public spending and rationalize work incentives by consolidating welfare and unemployment benefits; (3) encourage business to hire more freely by easing stringent hiring and...

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TAGGED: Italy, Eurozone, Europe, Matteo Renzi

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