Tuesday 30 June 2009

UPDATE: Italy Econ Min: Tax Breaks For Cos Worth Some EUR4 Billion

UPDATE: Italy Econ Min: Tax Breaks For Cos Worth Some EUR4 Billion
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ROME -(Dow Jones)- Italian Economy Minister Giulio Tremonti said Tuesday that tax breaks for companies that reinvest their profits to buy machinery will total about EUR4 billion as part of a stimulus plan aimed at boosting investment and confidence in Italian businesses.

Tremonti, speaking at a press conference in Rome, also said Italian companies and families will save EUR2 billion from lower bank fees.

The stimulus package, which is fully financed, also contains a separate measure to speed up payments the government owes to Italian companies of about EUR5 billion.

The government hasn't yet confirmed how much the total stimulus is worth, but a person familiar with the situation told Dow Jones Newswires Friday that the package is worth about EUR4.5 billion.

Italy is in a deep recession. The Organization for Economic Cooperation and Development recently cut its 2009 forecast for Italian gross domestic product to a contraction of 5.5%, following a 1% decline last year, which would mark the deepest recession since World War II.

The government is also expected to release its revised economic forecasts in two or three weeks.

Web site: www.governo.it

-By Luca Di Leo and Sofia Celeste, Dow Jones Newswires; +39-06-69766920; sofia.celeste@dowjones.com

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(END) Dow Jones Newswires

June 30, 2009 13:13 ET (17:13 GMT)

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