“The Eurogroup reaffirms that the reduction of taxes on labor is a clear policy priority.” This is what the statement issued at the end of the Eurogroup, which also calls for an exchange of best practices at EU level. In November, starting from these principles in November in the budget laws of the countries and in Spring 2015 will monitor these reforms. After the discussion on the reduction of the tax wedge, the Eurogroup has today discussed the common principles. “The overall tax burden in the euro zone is above the OECD average, and is biased towards the work. Given the need for fiscal consolidation, the tax burden on labor has increased in recent years. This is a clear impediment to function properly and effectively in the euro area labor markets and goes against the objective of stimulating economic activity and increasing employment, in particular, given the level of high unemployment in several euro area Member States . ”
Reduce the tax burden on the job, the statement said, has the potential to bolster consumption, stimulate the supply of labor and employment, and to improve the cost -competitività and profitability of enterprises. “It may therefore increase the demand, growth and support the creation of jobs, and contribute to the smooth functioning of the monetary union. In this context, the Eurogroup reaffirms its commitment to effectively reduce the tax burden on labor” .
So for effective reform of labor, l ‘ Eurogroup sets out four priorities: “Design of reforms, targeted to the specific problems of the country, ensuring simplicity to the tax administration.” Then serves a tax reform in this sector, with a compensatory reduction of costs, or moving labor taxes to the taxes are less harmful to growth. Finally, serves a wider political context that accompany the reforms on a package of labor market reforms and a political and social support with a redistribution of income.
“ We masters but we as interpreters of all countries comply with their commitments and what they promised to other countries, the Stability Pact allows flexibility, much can be done within the existing rules, the important thing is that there are interpretations in white or black, you do not have to choose between growth or consolidation because the situation is not simple, it is an interpretation Sound fiscal consolidation to improve its confidence and at the same time to consider the composition of public expenditure, so that more countries create a prioritization of investments “, said Jyrki Katainen, the outgoing EU Commissioner for Economic Affairs and the future Commission Vice-President who takes office in November in response to Prime Minister Matteo Renzi wrote on twitter that “we do not expect lessons from Europe.”
“ The Bad Katainen Matteo Renzi. ‘We are not masters but interpreters. Moral: Europe can not be improvised” , said Renato Brunetta, leader of Forza Italy in the House Members.
The ECB president, warned the Italian government. “In order to ensure that they return the investments needed to make structural reforms more ambitious because otherwise the growth is likely to remain at low levels. L ‘effect of monetary policies is greater if you have prepared the ground for appropriate structural reforms, rather than in their absence.’s why we talk about dividends of reform , “said Mario Draghi .
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