Renzi pledges €18 billion in tax cuts

Italian Prime Minister Matteo Renzi has pledged €18 billion in tax cuts as part of a raft of fiscal changes aimed at boosting growth and creating jobs.

Renzi pledges €18 billion in tax cuts
Italy's Prime Minister Matteo announced a raft of tax cuts aimed at boosting growth. Photo: Alberto Pizzoli/AFP

At a business conference in Bergamo, the premier also promised €1 billion in tax breaks to employers who hire new staff next year on permanent contracts.

He said taxes would be reduced by €18 billion next year, while €6.5 billion will also be cut from Irap, the widely-criticized regional labour tax.

The premier also said that another €10 billion euros would go towards extending a tax cut for low earners announced earlier this year, while €500 million would go towards helping families.

"We're not going anywhere unless we recover confidence," Renzi was quoted in La Repubblica as saying.

"We need to change, but we also need the courage not to resign."

But his pledges were met with jeers by a delegation of factory workers, who are opposed to his controversial labour reforms which will make it easier for companies to hire and fire.

Protests against the reforms are planned on October 25th.

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