DON'T TAX WHAT YOU DO WANT...:

The 10 billion euros in income-tax cuts, which will affect 10 million Italians, will be a permanent measure providing approximately 80 euros monthly, effective next month. The decree, which contained no real surprises, also set a salary cap for senior officials at State-controlled companies of 240,000 euros,.

"This in general begins a process of reorganization of the State," Renzi said after his cabinet approved a major financial decree that included large tax cuts as well as minor government reforms.

The tax cuts will be funded by a 400 million euros reduction in defence spending and other savings including 150 million euros from a review of the F-35 fighter-jet programme.

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