IMF cuts Italy growth forecasts for 2013, raises 2014's

IMF against rolling back Italy's hated homeowners' tax

04 July, 18:50

    (ANSAmed) - Rome, July 4 - The International Monetary Fund on Thursday cut its 2013 Italy growth forecast from -1.5% to -1.8% but raised 2014's from +0.5% to +0.7%.

    "A recovery is expected at the end of 2013, sustained by exports and a modest improvement in investments," the IMF said.

    Italy must cut taxes and spending to boost growth whose prospects remain low, the International Monetary Fund said Thursday. "Rebalancing fiscal reforms is absolutely necessary to sustain growth," it said, adding that paying government debts to firms can help them escape the credit crunch. The IMF came out against abolishing a contested tax on primary residences in Italy. "The tax should be upheld for reasons of fairness and efficiency," said the IMF in a report that also called for an "accelerated" revision of the country's land surveying policies, "in order to ensure equity".

    Three-time premier Silvio Berlusconi has threatened to topple the left-right coalition government if it fails to roll back the tax. The government has so far opted to put it off, but has not committed to eliminating it entirely. Italian Economy Minister Fabrizio Saccomanni praised the IMF report for recognizing "the significant progress" Italy has made in terms of fiscal consolidation, its budget, and the economy overall. Speaking at an IMF press conference, Saccomanni said Italy's "banking system has held up well from the impact of the crisis and is able to cope with the challenges (of the recovery)".

    He also said the Italian government was "keeping in mind" the IMF's opposition to rolling back the hated IMU homeowners' tax in Italy. "It's something we're evaluating," said Saccomanni.

    "The goal is to find consensus within the coalition". (ANSAmed).

    © Copyright ANSA - All rights reserved

    Business opportunities

    The information system of business
    opportunities abroad

    News from Mediterranean