Italian Budgetary and Economic Developments

The Italian Parliament has approved Italy’s budget.  According to the Italian News Agency, ANSA, it keeps the deficit to less than 3% of GDP, as required by the European Union.  ANSA reports that the budget includes pension cuts, a local tax to replace the real estate tax on primary residences, a Web tax (to which the European Union objects), as well as modest income and labor tax cuts.  The budget is expected to increase growth slightly.  Additional spending cuts and further crackdowns on tax evasion are planned by the Italian Government, according to ANSA. 
           
           After posting a flat quarter of economic growth for the first time in two years, Italy is projected, according to ANSA, to return to economic growth and begin to recover in 2014.