Italy's Salvini underscores urgent need of tax cuts as debt mounts

Reducing Italy's high tax burden is the only way to spur growth and lower the country's debt as demanded by the Bank of Italy, Italian Deputy Prime Minister Matteo Salvini said on Friday. In an interview with Reuters, League leader Salvini said he "absolutely agreed" with central banker Ignazio Visco who on Thursday said a strategy to gradually reduce Italy's 2.3 trillion euro ($2.6 trillion) public debt couldn't wait any longer.

"Reducing taxes is the only way to lower the spread (between Italian and German government bond yields) as well as debt and deficit, so they should allow us to cut taxes," Salvini said when asked about Visco's comments.

(With inputs from agencies.)