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Sunday, February 3, 2013

Silvio Berlusconi accused of 'dangerous propaganda' over Italy tax cut vow

Threetime PM promises to refund €4bn proceeds from loathed property tax if his rightwing coalition wins wide-open elections

Silvio Berlusconi has been accused by opponents of spouting "dangerous electoral propaganda" after he vowed to ease the tax burden on austerity-stricken Italians if his rightwing coalition wins elections later this month.

With only three weeks to go before the country goes to the polls, the threetime prime minister is gaining ground on centre-left frontrunners in what he described on Sunday as his "last great electoral and political battle". One opinion poll released on Friday had his grouping within five points of the Democratic Party (PD)-led coalition.

In a speech aimed at winning over the large number of undecided voters, the billionaire media mogul cast himself once again as a friend of the people who would break with the agenda of technocrat prime minister Mario Monti.

The centrepiece of a series of measures announced in Milan was a promise not only to abolish a loathed property tax but also to refund Italians the money paid for it during 2012 – an exercise that would cost the treasury an estimated €4bn (£3.5bn).

"This tax caused Italian families worry, anxiety, fear of the future," said Berlusconi, describing the refund as "an act of peace" from the state to the people. Known as the IMU, the tax on first homes has been highly unpopular ever since Monti imposed it in 2011. Berlusconi has already abolished it once, upon returning to power in 2008.

The 76-year-old, who has said he will be finance minister rather than prime minister if his alliance pulls off an unlikely triumph, also said a rightwing government would abolish, over the course of five years, a regional tax on business. He promised not to increase VAT and said that, "above all", there would be no "wealth tax" on high earners.

The speech was met with a standing ovation from party chiefs and supporters but with stinging criticism from Berlusconi's opponents who accused him of irresponsible electoral trickery that Italy's stagnant and struggling economy cannot afford.

The country – in recession for the fourth time since 2001 – has the second-highest public debt-to-gross domestic product ratio in the eurozone, behind Greece. Unemployment has risen from 8.4% in 2011 to 11.2% in December.

Monti, whose eclectic group of centrist parties is lagging behind in the polls, said: "Berlusconi governed for so many years and kept none of his promises. Moreover, he created many problems, so much so that he to leave [office] … Italians have good memories."

Rosy Bindi of the PD denounced the speech as "dangerous electoral propaganda", while Pier Ferdinando Casini, the head of the Union of Christian Democrats (UDC) and former Berlusconi ally, said the former premier was "a great salesman [who] would be capable of selling anyone a car without a motor".

But the man himself was defiant. "We think we are close to an historic result," he said. "Simply put, we are sure we are going to win."

Berlusconi was forced to stand down as prime minister at the end of 2011 by a combination of personal scandal and economic crisis, and his Freedom People (PDL) party supported Monti's government until December, approving nearly all the technocrats' austerity measures.

But Berlusconi now says that, instead of reviving the Italian economy, tax hikes and other measures have merely served to cause unemployment to rise and consumption to fall. He claimed he would cover the revenue lost by the refund with other measures including a reduction of state funding to political parties and a tax, to be agreed with Switzerland, on financial activities by Italian citizens in the neighbouring country.

A SkyTG24-Tecne opinion poll published at the end of last week put Berlusconi's right-wing coalition on 28.7%, just 4.9 points behind Pier Luigi Bersani's centre-left grouping on 33.6%. The same poll had Monti's centrists on 13.8%, beaten into fourth by comedian-turned-politician Beppe Grillo, whose Five Star Movement was on 15.7%.


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German politicians voice skepticism on aid for Cyprus

BERLIN (Reuters) - A top member of Chancellor Angela Merkel's Free Democrat coalition partners and several opposition lawmakers said on Sunday they would only agree aid for Cyprus if it tackled money-laundering and implemented structural reforms. Cyprus has asked the European Union and International Monetary Fund for a bailout but resistance is strong in euro zone paymaster Germany. Cyprus's problems go back to its banks' exposure to crisis-hit Greece and in Germany much has been made of its status as a popular tax haven for wealthy Russians. ...

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Greece's Venizelos to Stay in Hospital for One Day, Pasok Says


Greece's Venizelos to Stay in Hospital for One Day, Pasok Says
Bloomberg
Evangelos Venizelos, leader of Greece's socialist Pasok party, was admitted to hospital today in the country's second-largest city of Thessaloniki for a scheduled health check, Pasok said. Following Venizelos's admission, it was declared necessary for ...

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Greece rejigs taxation of gambling monopoly OPAP


Greece rejigs taxation of gambling monopoly OPAP
Chicago Tribune
ATHENS (Reuters) - Cash-strapped Greece on Sunday introduced a tax-free threshold on small gambling winnings, as it tries to increase tax receipts from gambling monopoly OPAP without hurting its sales. According to a legislative amendment to be ...

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Greek seamen, farmers protest against government cuts

A woman walks immobilised ships which ceased operations during a strike, at a promenade of Piraeus port near AthensATHENS (Reuters) - Greek seamen extended a strike to protest against government austerity for a further 48 hours on Sunday, meaning dozens of islands will have been cut off from the mainland for six days. Farmers also briefly disrupted traffic on major motorways across Greece in the latest wave of protest over budget cuts and labor reform that is needed to satisfy international lenders. Greece's biggest labor union has called a general 24-hour strike for February 20. ...



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What Ontario can learn from Greece


What Ontario can learn from Greece
Troy Media
3, 2013/ Troy Media/ – Greece, experiencing a massive fiscal crisis rooted in rampant debt which is resulting in cuts to public spending and services and a decline in quality of life, is an intriguing fiscal example for Ontario, given it has a ...

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Greek seamen, farmers protest government cuts, reforms


Press TV

Greek seamen, farmers protest government cuts, reforms
Fox Business
Reuters. ATHENS – Greek seamen extended a strike to protest government austerity for a further 48 hours on Sunday, meaning that dozens of islands will have been cut off from the mainland for six days. Farmers also briefly disrupted traffic on several ...
Greek transport workers, doctors strike over austerityReuters
Greek Dock Workers Strike for 2nd DayABC News
Greek workers hold demo to demand release of union membersPress TV
Huffington Post -U.S. News & World Report -Fox News
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