ITALY:IT WAS always clear that new Italian prime minister Mario Monti would have a very tight window of favourable opportunity. Inevitably, in the wake of his €30 billion budget of public service cuts and tax hikes unveiled last Sunday, his approval rating has begun to decline, from an initial 75 per cent three weeks ago to 64 per cent this week, according to Milan daily Corriere Della Sera.
Ironically one of the least intended achievements of the new government has been to reunite Italy’s divided confederated trade unions which, for the first time in six years, will hold a series of joint strikes over the next 10 days.
“[The budget] does not tally with the criterion of equity and growth, along with fiscal rigour, which were indicated by the prime minister himself. Yet again, the same categories have to pay the bill – workers, pensioners and the middle classes. What is missing, however, are measures which would force both those who have wealth and those who have evaded tax to pay,” said a joint statement from the CIGL, CISL and UIL confederated unions.
Even though some of the original budget proposals, essentially in relation to pension reform, have already been modified, a growing body of public opinion remains unconvinced the budget proposals are fair. With petrol already costing more and Bank of Italy governor Ignazio Visco saying tax pressure in Italy will reach 45 per cent, pension reform and property tax have prompted bitter polemic.
Property tax has also embraced the Catholic Church with many calling for the church, which is estimated to directly or indirectly own as much as 20 per cent of all Italian real estate, to pay its share.
In three days news review MicroMegahas collected more than 160,000 signatures, supporting a campaign called "Come On, Vatican, You Pick Up the Budget Tab For Us".
Vatican secretary of state Cardinal Tarcisio Bertone felt obliged to point out that only places of worship and of social assistance were exempt from property tax, while Catholic hospitals, schools and BBs always paid property tax. In the meantime, director general of Rome’s Tax Debt Collection office, Marco Cuccagna, yesterday suffered a serious hand injury when opening a letter bomb. As of last night it was unclear who sent it.