Govt examining labour tax-wedge cut - Poletti (2)

Minister criticises austerity, Fornero reform

Govt examining labour tax-wedge cut - Poletti (2)

Rome, July 18 - Labour Minister Giuliano Poletti said Tuesday that the government was examining ways to bring down the labour tax wedge by reducing social security contributions. The tax wedge is the difference between what it costs a company to employee a worker and the pay that the worker takes home. "The problem is making it (the reduction) lasting over time," Poletti told In the interview he criticised austerity policies that "raised the retirement age by five years abruptly". He said that the Fornero reform raising the retirement age passed by one of his predecessors, Elsa Fornero, "should have been done in a different way, it needed to be gradual".

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