Italian Populists Bring Promises With Hefty Price Tags
- Flat tax, guaranteed income for the poor may be on the agenda
- Five Star, League in final push to form government next week
Luigi Di Maio, a leader of the anti-establishment Five-Star Movement
Photographer: Simon Dawson/Bloomberg
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Populists may be coming soon to power in Italy with ideas including a flat tax for all that could blow a hole in the country’s finances if they are ever implemented.
The various promises, which also cover a lower retirement age and a guaranteed income for the poor, would probably provide a short-term growth boost. Still, they risk heaping additional fiscal burden on an economy already crippled with debt, unless the measures are offset by spending cuts or tax increases elsewhere.