Italy’s PM Letta Plans to Follow EU Budget Rules

Italian Prime Minister Enrico Letta is heading to Berlin on his second full day in office to present his economic growth plan to German Chancellor Angela Merkel.

The program calling for tax cuts for business, consumers and homeowners won a confidence vote in the Italian Parliament yesterday and garnered the approval of bond investors, who pushed 10-year government yields to the lowest in two-and-a-half years. Merkel and Letta will hold a press conference at 6 p.m. and then speak over dinner.

Investors and European leaders got a first look at the new Italian government yesterday when Letta, 46, gave his introductory speech to Parliament. While the program, a compromise among the three parties backing the government, included assurances about Italy’s commitment to budget rigor, it lacked details about how Letta would fund his tax reductions.

Bloomberg

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