23/05/2008 11:55:40 pm
Reform Prophet? At the event in Stresa, Italy, today, I was introduced as the "reform prophet" travelling Europe. Many interesting people to meet - like Henri Lepage, one of those responsible for inviting me. At the dinner, I sat next to the new Deputy Minister of the Economy in Italy. He said that the government feels that it now has the best reform opportunity Italy ever had. They have just cut the income tax for overtime work and abolished the real estate tax for the house in which you live. All cuts paid for by some 60 cuts in public spending. He also told me of their plans to sell Alitalia to private owners, pensions reform and de-regulations in product markets. Their aim is to get public spending below 40 per cent of GDP within five years. And they will build new nuclear power stations. Sounds promising, but all is a matter of delivering at the end.