Italy afraid to raise taxes

The Italian government on Tuesday passed a 24 billion euro austerity package. The fear of imposing unpopular tax increases is driving Rome to adopt inadequate economy measures, the left-liberal daily La Repubblica criticises: "Instead of considering long-term cost cuts and growth it's all about cashing in as quickly as possible. In a bid to calm the financial markets Rome runs the risk of giving the impression that it is already ruined. ... The government obviously hasn't yet learned to use budgetary cuts, increases in productivity and growth incentives to accelerate and slow down at the same time. ... Rome has ruled out tax hikes for ideological reasons. So instead there'll be an endless series of minor taxes like fees for motorway approach roads that the inattentive voter is supposed to shrug off as mere budgetary adjustments to meet costs."

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