Italy’s prime minister Mario Monti is to give low-earners a cut in income tax.
It is a rare boost for struggling households in the eurozone’s third largest economy that has been in recession for a year.
The unexpected tax cut was balanced with a rise in VAT and a series of spending cuts in a combined package worth 11.6 billion euros in all.
Monti said: “We wanted to give a clear signal that when there are good signs of stabilisation in the national budget you can afford some moderate relief on income tax.”
Monti added that the tax break shows that his severe austerity measures were beginning to bear fruit.
Parliamentary elections are due in Italy next year.
- 1Winners and losers of the “Mini Euro”, Facebook moves into news
- 2Portugal’s debt rises but a better 2015 on the cards says report
- 3Greece sends revised reforms list to creditors for approval
- 4Apple boss Tim Cook to give away fortune to charity
- 5Greeks flock to take advantage of forgiveness for tax fines
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Russian rumour mill suggests Putin suffering poor health | euronews, world news
- 3Slovenia becomes 11th EU nation to approve gay marriage | euronews, world news
- 4[LIVE] Germanwings passenger jet crashes in southern France, 148 people on board – authorities | euronews, world news
- 5Exclusive: CIA and Mossad are behind Boko Haram and ISIL, says Sudan president | euronews, world news
- 6Indian rapist says women to blame for being sexually assaulted | euronews, world news
- 7International news | euronews, latest international news
- 8Why is Bulgaria the EU’s most unhappy country? | euronews, world news
- 9French Alps plane crash treated as suicide and mass murder by co-pilot | euronews, world news
- 10Greece’s claim for war reparations from Germany explained | euronews, world news
- 11Reaching new heights: Parents in India scale walls to ‘help students cheat’ | euronews, world news
- 12Tens of thousands march in Moscow in memory of Boris Nemtsov | euronews, world news
- 13eurovibes - a selection of Europe’s best music talent
- 14Handwriting and the digital age, time for change in schools? | euronews, learning world
- 15London calling: why home-loving Hungarians are flocking to British capital | euronews, reporter
- 16International breaking news | euronews online world breaking news in video
- 17French prosecutor: Germanwings co-pilot appears to have crashed plane deliberately | euronews, world news
- 18Manufacturing jihad – Nicolas Hénin explains what he learned about ISIL | euronews, the global conversation
- 19Germanwings press conference mystery: what wasn’t he supposed to say? | euronews, world news
- 20Which EU country has the biggest gender pay gap? | euronews, world news
Wires > Business
- 22:48 CET Irish governing parties see poll boost as Sinn Fein falters
- 22:42 CET Greek PM Tsipras says he seeks no rift with Europe
- 21:52 CET Libya tells Arab summit arms embargo must be lifted to fight IS
- 20:32 CET EU’s Juncker postpones Kiev visit due to kidney stones
- 19:55 CET Gunmen kill 15 in Nigeria during tense election
- 19:03 CET U.S., allies target Islamic State in Tikrit, other Iraqi cities
- 18:43 CET Thousands march through Rome against Renzi’s labour reform
- 18:21 CET Kenya hits out at Britain’s tougher travel warning