Economy / Politics

Is Renzi bluffing ?

Mr Renzi began his tenure as Prime Minister with a Berlusconi-style big promise: an 80 euro increase of the average salary, to be obtained by lowering income taxes.

To do so, he needs a Law or a Decree, which won’t be signed by the President unless Mr Renzi indicates how he will be able to lower the taxation and at the same time keep the State budget in order. This is called “the cover”.

Mr Renzi claims that he found the cover already, but many put this in doubt, including the Senate Offices, which contend that the Government overestimated the efficacy of its cover plan.

Mr Renzi wants to put the new measure in place before the end of May, in time for the European elections.

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