Economics
Italy's Election Promises Heap More Strain on Debt-Loaded Nation
- Flat tax, minimum income, repealing pension law cost billions
- Central bank has renewed call for measures to reduce debt
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Italy’s major parties haven’t formally spelled out their election economic programs, but early hints have politicians sniping and economists questioning their feasibility.
Proposals range from Silvio Berlusconi’s 23 percent flat tax for individuals to the Five Star Movement’s minimum income for the poorest households -- all costly ideas, particularly for a country with already-strained finances. The measures could push public spending and revenue out of control just as a more robust economy was starting to cut the country’s debt load.