Economy / Politics

Italy to privatize postal service

Massimo Troisi in “The Postman”.

The Financial Times reported that the Italian Government is going to sell out 40 percent of the its mail service, currently managed by a company wholly owned by the Treasury. The Government expects to cash in about 4 billion euros.

The move could be related to Prime Minister Matteo Renzi’s recent commitment to greatly decreasing the fiscal burden on families and enterprises. In order to achieve that, the Government will need massive cuts of public expenditures, and even that will not be enough without some help from Brussels. The European Institutions will have to accept some flexibility in the application of their budget rules, or Mr Renzi will be forced to renege on his pledge.

As a first step, Mr Renzi promised to exempt the primary residence of a natural person from the real estate tax, a move which allowed Silvio Berlusconi to avoid an electoral defeat in 2013.

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