Italy Must Meet Fiscal Targets After Abolishing Property Tax

European authorities will want to ensure Italy can still meet its fiscal commitments after scrapping a property tax, the European Commission’s top economic official said on Thursday.

Italy’s government reached a deal on Wednesday to abolish the unpopular tax, easing a source of persistent political tension within the country’s fragile coalition, and replace it with a new levy known as the “Service Tax”.

The Commission is still awaiting details of the “compensatory measures”, Olli Rehn told journalists at an economic conference in the Alpine village of Alpbach.

“The essential thing was that Prime Minister (Enrico) Letta reconfirmed that Italy will stick to its fiscal targets in line with its European commitments. That’s important.”

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza