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Moderate Italian unions call rally to seek tax cuts

Published 09/13/2010, 11:24 AM
Updated 09/13/2010, 11:28 AM

* Moderate unions call for tax cuts for families, employers

* Announce demonstration for Saturday, Oct 9.

By James Mackenzie

ROME, Sept 13 (Reuters) - Two of Italy's largest unions announced plans on Monday for a major demonstration in Rome next month to press for an overhaul of the tax system aimed at boosting economic growth.

The moderate CISL and UIL, respectively the second- and third largest Italian unions, urged a series of measures to cut taxes for workers, pensioners, families and companies and called the demonstration for Oct. 9.

They also demanded a tougher crackdown on tax fraud and urged an increase in tax rates on financial investment income to 20 percent from 12.5 percent at present.

However, they said income from Italian government bonds should be exempt from the tax rise to avoid undermining investment in the country's sovereign debt, which is largely held by domestic savers.

"We're at the start of a period of possible economic recovery and the time has come to undertake a serious tax reform. There are no more alibis," Luigi Angeletti, secretary general of the UIL, told reporters.

Economy Minister Giulio Tremonti has yet to comment on the tax proposals directly but has said there will be no new budget.

The CISL and UIL have supported moves by employers such as carmaker Fiat for deals to boost productivity in their Italian plants and have called for industrial accords similar to those struck by German unions and companies.

They have strongly criticised the largest Italian union, the CGIL, which has taken a more hardline stand and which is not expected to take part in the Saturday, Oct. 9 demonstration on the Piazza del Popolo in the Italian capital.

"We don't see a willingness on the part of the CGIL to seek genuine agreements with genuine results," Angeletti said.

CSIL head Raffaele Bonanni said the demonstration was not intended as a political rally and the unions would avoid strikes as far as possible, limiting any further protests to evenings or Saturdays."We don't want parties or banners," he said.

Unions across Europe have held a series of protests, strikes and other forms of action against austerity measures that have hit many workers, particularly those in the public sector.

But, reflecting Italy's comparatively smooth passage through the financial crisis and the absence of the kind of drastic budget cuts seen in countries such as Greece or Spain, Italian unions have been relatively quiet.

Tremonti has pushed through a 25 billion euro ($32 billion) austerity package which drew complaints that it favoured the rich at the expense of workers. However, street protests in Italy were organised only by the CGIL and have been more muted than in other countries. "The demonstrations in Europe were about austerity packages that were rather heavier and harder from a social point of view than what was done in Italy," Angeletti said.

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