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Italy's Tria says careful budget policy needed to fund tax cuts

Kitco News

MILAN, July 12 (Reuters) - Economy Minister Giovanni Tria said on Friday that Italy needs to carefully manage its budget policy in order to fund income tax cuts promised by the anti-austerity ruling coalition.


In a speech in Milan, Tria said he was satisfied with the way the Italian economy had help up so far this year, following a shallow recession at the end of 2018, and he confirmed an official forecast of 2019 growth of 0.2%.


The government will work in the next few months on a reform of the current system of income tax, Tria told the Italian banking association, adding that this will require "a careful management of budget policy."


The ruling League party is pushing for a "fiscal shock" in the 2020 budget, which its leader Matteo Salvini has said must include billions of euros of tax cuts.


The recent success of a 50-year bonds sale by the Treasury showed investors' confidence in the long-term sustainability of Italy's debt, Tria said.


(Reporting by Elvira Pollina, writing by Gavin Jones)

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