ECONOMIC REFORMS PASS, PURCHASING POWER PROJECTED TO INCREASE
January 4th 4722
A shopping street in the Istalian city of Angona likely to see a increase in customers this summer
Romula: The Right wing government led by the PDLN recently passed a series of economic reforms deregulating the public works industry, lowering taxes on companies and luxury goods as well as loosening restrictions on smaller companies, which would under this law no longer be mandated to cover payroll contributions to employees. In addition to these reforms the coalition passed a series of tax reforms lowering taxes on the middle class in a effort to increase their purchasing power and relieve them of decently high taxrates.
According to the Public Office of Economic Management (POEM), which calculates the effects of economic reforms, the new plan is likely to increase consumer purchasing power to a high degree, allowing them to spend their money directly into local economies which would in turn grow the Istalian economy. The increased purchasing power would also strengthen larger families by freeing up funds for additional food, healthcare or other necessities they would otherwise spend on taxes. According to POEM the new plan would grow the istalian economy by 2.5% next year and the decrease in taxes for companies would likely lower the unemployment from 8% currently to 7.4% by the end of next year.
POEM did however have certain critiques on the reforms, stating that the taxcuts did cause Istalia to now run on a deficit and could, in the future, result in a bigger debt for the Istalian state. Furthermore the loosening of restrictions and regulations could lead to a less powerfull role for the Trade Unions in the country, something the right will be happy about but the left less so. The loosening of restrictions would however, according to POEM, lead to around 2.000 extra bussinesses to launch next year compared to other years, likely further increasing the benefits for consumers. Prime Minister Tranchina has responded positively to the early reports saying that
government policies and reforms will likely cause increased growth in the coming years and more wealth for ordinary Istalians, we will continue to work to ensure that the Istalian people benefit from this projected growth