The Italian budget unveiled on Thursday by the prime minister is a mixture of tax cuts and investment that may please the people – and cause rumbles of concern in Brussels.<br /><br /> Matteo Renzi already revealed much of the content earlier. Twenty-seven billion euros worth of tax cuts will be funded by extra borrowing, slowing the pace of deficit and debt reduction previously agreed with the European Commission.<br /><br /> Technically the budget appears to break EU rules but Renzi argues he deserves some flexibility in return for reforms he’s passed.<br /><br /> A housing tax is being abolished; the Commission believes Italy should be increasing property levies to make way for cuts in labour taxes to help create jobs.<br /><br /> To try to boost consumer spending, the previous limit of 1,000 euros for cash payments in shops is being raised to 3,000 euros.<br /><br /> Consumer and retail groups have welcomed the move.<br /><br /> Renzi has dismissed fears that it will encourage Italy’s already large black economy and weaken the fight against
