Cutting back on spending is half the task facing Italy, the EU’s Commissioner for Economic Affairs told Euronews, yet this needs to be complemented by boosting state revenues. Non-declaration of income is a big part of the problem in balancing the books.
Rehn said: “Italy is clearly one of the euro area member states which needs to accelerate fiscal consolidation and the measures that have been announced certainly go in the right direction. Of course, we need to assess and analyse them more thoroughly but that is clearly the right direction, these measures.”
“I trust that it is a serious act of political will to counter tax evasion and certainly it should be, because in many member states of the euro area this is a genuine problem and therefore one of the first things to do to fiscally consolidate is to tackle tax evasion in the EU member states.”