Fresh in power, reforms’ challenge awaits Renzi
26 Feb 2014 5:10 AM IST
Backed by his own center-left Democratic Party (PD), the small center-right NCD party, centrists and other miscellaneous groups, he should have enough support in the 320-seat upper house.
But there will be close attention to the size of his majority after some leftwingers in his own party threatened to vote against the government. If he falls significantly below the 173 secured by his predecessor Enrico Letta in December, his authority could be weakened from the start.
With the euro zone’s third largest economy in urgent need of potentially painful reforms and weighed down by a 2-trillion-euro public debt, Renzi’s room for maneuver is limited and an uncertain parliamentary majority will not help.
‘If parliament is with us, good. Otherwise, Renzi is certainly not afraid of the ballot box,’ his chief of staff Graziano Delrio told RAI state television.
The 39-year-old mayor of Florence, who won the leadership of the PD in December, forced his party rival Letta to resign as prime minister earlier this month after repeatedly attacking his government’s reform record.
He took office on Saturday promising a radical increase in tempo, with an overhaul of the electoral and constitutional system to ensure more stable governments in future, tax and labor reforms and a shake-up of the bloated public administration, all within his first 100 days.
Delrio said the government would cut taxes on non-wage labor costs, financing the reduction through spending cuts and privatization revenues.
It may also raise taxes on financial earnings from investments like short-term treasury bills, which are popular with many savers.
But Delrio ruled out a new wealth tax, which some opposition politicians have suggested could be in the pipeline.
But there will be close attention to the size of his majority after some leftwingers in his own party threatened to vote against the government. If he falls significantly below the 173 secured by his predecessor Enrico Letta in December, his authority could be weakened from the start.
With the euro zone’s third largest economy in urgent need of potentially painful reforms and weighed down by a 2-trillion-euro public debt, Renzi’s room for maneuver is limited and an uncertain parliamentary majority will not help.
‘If parliament is with us, good. Otherwise, Renzi is certainly not afraid of the ballot box,’ his chief of staff Graziano Delrio told RAI state television.
The 39-year-old mayor of Florence, who won the leadership of the PD in December, forced his party rival Letta to resign as prime minister earlier this month after repeatedly attacking his government’s reform record.
He took office on Saturday promising a radical increase in tempo, with an overhaul of the electoral and constitutional system to ensure more stable governments in future, tax and labor reforms and a shake-up of the bloated public administration, all within his first 100 days.
Delrio said the government would cut taxes on non-wage labor costs, financing the reduction through spending cuts and privatization revenues.
It may also raise taxes on financial earnings from investments like short-term treasury bills, which are popular with many savers.
But Delrio ruled out a new wealth tax, which some opposition politicians have suggested could be in the pipeline.
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