Adoption of measures in view of reducing public spending in Italy

7^th May 2012

On 30th April during a Council of Ministers Mario Monti's government adopted a series of measures in view of reducing public spending structurally by pinpointing "wastage" and to avoid, in the short term, any further increases in VAT. "The total amount of the reduction in pubic spending is 4.2 billion euros, a sum that will be used to prevent a two point VAT increase, which has been planned for in October," declared Mr Monti after the Council which lasted nearly six hours. Enrico Bondi, a former extraordinary adminstrator of the bankrupt food giant Parmalat was appointed extraordinary commissioner for the rationalisation of public spending with the goal of defining a level of spending in each sector.

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