For Italian Prime Minister Matteo Renzi, his image as the leader putting Italy's troubled economy on track may hang in the balance.
Renzi raised eyebrows earlier in the month when he unveiled a 2015 budget plan that included an 18 billion euros (22.8 billion U.S. dollars) tax reduction strategy aimed at sparking growth and slashing unemployment. Renzi said it was the "biggest single tax relief plan" in Italian history.
According to Ministry of Economy estimates, the plan would increase the deficit from 2.2 percent of GDP to 2.9 percent -- just within the cap.
But Maurizio Franzini, an author and economist with La Sapienza University in Rome http://www.texansfansproshop.com/Texans+Jay+Prosch+Rush+Jersey.html?cat=1367 , said the problems are two other medium-term indicators: a calculation that says the budget would be balanced if there were no economic crisis, and of course the total government debt, which should be on pace to sink below 60 percent of GDP within 20 years. Italy's current public debt is 135 percent of GDP and rising.
"These are the key issues, and Italy will be asked to explain how the 2015 budget will help address these issues http://www.texansfansproshop.com/Texans+Jaelen+Strong+Rush+Jersey.html?cat=1341 ," Franzini told Xinhua. "Depending on how the response from Minister of Finance Pier Carlo Padoan goes, Italy could be asked to make certain adjustments in the budget or it could face fines or other sanctions."
"Renzi is solidifying his reputation as a leader who follows through on his reform plans and who gets things done, including effecting change on the European level," Maria Rossi, Opinioni's founder and co-director http://www.texansfansproshop.com/Texans+Greg+Mancz+Rush+Jersey.html?cat=1343 , said in an interview. "If the government is forced to go back on the budget plan, it could be a blow for Renzi."
Rossi said such a move might also foster growing anti-EU sentiment in Italy. Renzi is a pro-European leader, though with the hope of making European regulations more flexible over time.
But the number of Italians who believe the EU is good for the country has steadily eroded over the last four years, Rossi said http://www.texansfansproshop.com/Texans+Duane+Brown+Rush+Jersey.html?cat=1368 , while the continued influence of anti-EU political movements like that of comedian-turned-activist Beppe Grillo -- now the second largest political party in Italy -- helps illustrate how sentiment could quickly become dominant.
"About one in five Italians is unsure about whether the EU is a good thing for Italy or not, and many of them are Renzi supporters," Rossi said. "If something dramatic happens to start getting that group to become anti-European, it could spark a dramatic change in this country."
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