ANTI-INFLATION DECREE INCLUDES GAS PRICES AND CAR INSURANCE
The government announced measures to
fight the rising cost of living
In an effort to
lower inflation rate car and motorcycle insurance tariffs
and gasoline taxes have been targeted.
The decree stemmed from warnings from the central bank
on the risk that the surge in prices over the past year
would bring workers to demand higher wages.
Inflation in Italy is running at 2.4% annually according
to February's data, that is twice the rate that serves
as an index for national labor contracts and pension benefits.
Responses to the anti-inflationary package vary from
that of analysts who believe its real intention is to
soothe disagreements with labor unions, to that of economists
who believe the decree too soft and insurers who state
that the decree is against the rules of European economic
policy.
In fact, Alfonso Desiata, head of the national insurers'
association described the 'package' as an 'electoral manoeuvre'
in view of next month's regional elections.
According to him the state-imposed conditions could
drive small companies out of business and warned that
the association would appeal against the decree before
Italian and European courts.
Innocenzo Cipolletta, director general of Confindustria,
agreed on the tax cuts, but criticized the creation of
a state-run price-monitoring commission.
Treasury Minister, Amato, said that his original 1.2%
inflation forecast would be used as reference point for
curbing the cost of water, highway tolls, railway fares
and the annual fee for owning a television.
Parliament has 60 days to ratify the decree, but the
measures it contains are already in effect.
Government promised further anti-inflation proposals.
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