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Renzi presents Italy's tax-cutting budget

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By Euronews
Renzi presents Italy's tax-cutting budget

<p>The Italian budget unveiled on Thursday by the prime minister is a mixture of tax cuts and investment that may please the people – and cause rumbles of concern in Brussels.</p> <p>Matteo Renzi already revealed much of the content earlier. Twenty-seven billion euros worth of tax cuts will be funded by extra borrowing, slowing the pace of deficit and debt reduction previously agreed with the European Commission.</p> <p>Technically the budget appears to break EU rules but Renzi argues he deserves some flexibility in return for reforms he’s passed.</p> <p>A housing tax is being abolished; the Commission believes Italy should be increasing property levies to make way for cuts in labour taxes to help create jobs.</p> <p>To try to boost consumer spending, the previous limit of 1,000 euros for cash payments in shops is being raised to 3,000 euros.</p> <p>Consumer and retail groups have welcomed the move.</p> <p>Renzi has dismissed fears that it will encourage Italy’s already large black economy and weaken the fight against tax evasion, money laundering and fraud.</p>