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Italy’s New PM RenziFaces First Parliamentary Test

Italy's PD leader Renzi gestures as he appears as a guest on the RAI television show Porta a Porta in Rome

Rome- Italian Prime Minister MatteoRenzi faces his first test before a fractious national parliament on Monday when he goes to the Senate to put flesh on ambitious reform plans and seeks to win a confidence vote in his newly installed government. Backed by his own centre-left Democratic Party (PD), the small centre-right NCD party, centrists and other miscellaneous groups, he should win the vote in the 320-seat upper house.

But there will be close attention to the size of his majority after some leftwingers in his own party initially threatened to vote against the government. If he fell much below the 173 secured by his predecessor Enrico Letta in December, his authority could be weakened from the start.

With the euro zone’s third-largest economy in urgent need of potentially painful reforms and weighed down by a 2-trillion-euro public debt, Renzi’s room for maneuver is limited and an uncertain parliamentary majority will not help. The 39-year-old mayor of Florence, who won the leadership of the PD in December, forced his party rival Letta to resign as prime minister earlier this month after repeatedly attacking his government’s reform record.

He took office on Saturday promising a radical increase in tempo, with an overhaul of the electoral and constitutional system to ensure more stable governments in future, tax and labor reforms and a shake-up of the bloated public administration, all within his first 100 days.

His chief of staff GrazianoDelrio told RAI state television the government would cut taxes on non-wage labor costs, financing the reduction through spending cuts and privatization revenues. But he ruled out a new wealth tax, which some opposition politicians suggested could be in the pipeline.

He also said that the government would respect the European Union’s deficit ceiling of 3 percent of gross domestic product after comments from Renzi suggesting that he will seek room to breach the limits temporarily to finance structural investments. (Reuters)

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