This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Berlusconi Vows To Cancel Property Tax On Day 1

Berlusconi blamed Monti's reinstatement of the tax on primary residences for Italy's spiral into recession, claiming it had decreased property values, reduced spending by ordinary Italians, slowed housing sales and seriously harmed the construction industry.

"Let's have a look at the damage that an untimely tax can do," Berlusconi said.

In truth, Italy's construction industry has been suffering throughout the economic crisis, which long predates the imposition of the property tax. A study by nationwide realtors group Tecnocasa said housing prices dropped around 5 percent around major cities and their suburbs last year, but there was no indication that the property tax was to blame: Tecnocasa cited tougher financing in the economic crisis and concerns about job security. It said there was no immediate impact on the purchases of primary residences.

Berlusconi came to power in 2008 after a last-minute campaign promise to remove the property tax, which he abolished in his first Cabinet meeting. On Friday, he promised to do the same if his coalition wins.

Monti had originally defended the tax as necessary and reasonable given that most of the developing world imposes one. But now that he is campaigning, Monti has said he would be open to revisions.

___

Follow Nicole Winfield at www.twitter.com/nwinfield

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs