Rome

Property tax solution expected by mid-August, says govt

Meetings on Thursday aimed at key issues, internal struggles

Property tax solution expected by mid-August, says govt

Rome, July 4 - A solution for the unpopular property tax called IMU will be hammered out by the summer recess that starts August 15, Italian government sources said during coalition meetings on Thursday. Italian Premier Enrico Letta is meeting members of his coalition for talks on key reforms and to attempt to smooth over internal battles threatening to destabilize his unprecedented left-right government. Letta, who was sworn in on April 28 at the helm of a broad left-right coalition government, has vowed to boost growth while maintaining the deficit below the EU's ceiling as the country, the eurozone's third-biggest economy, is struggling with its longest recession in over two decades. But Letta's executive looks fragile and its efforts to lift Italy out of its longest recession since World War II have been hampered by divisions between the PD and the PdL. Indeed, Letta's predecessor Mario Monti said Sunday that his small Civic Choice party would withdraw its support for the government if it fails to move up a gear. Although Monti's party is not big enough to sink the administration, the threat is seen as indicative of its problems.

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