Identifier
Created
Classification
Origin
05ROME2998
2005-09-09 15:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Rome
Cable title:  

DEVELOPMENT FINANCE: ITALY SAYS ANY GLOBAL TAX

Tags:  ECIN EAIR EAID EFIN IT UNGA 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

091559Z Sep 05
UNCLAS ROME 002998 

SIPDIS


SENSITIVE

STATE FOR USAID

E.O. 12958: N/A
TAGS: ECIN EAIR EAID EFIN IT UNGA
SUBJECT: DEVELOPMENT FINANCE: ITALY SAYS ANY GLOBAL TAX
MUST BE VOLUNTARY

REF: STATE 162146

Sensitive but Unclassified. Not for distribution outside USG
channels, not for Internet publication.

UNCLAS ROME 002998

SIPDIS


SENSITIVE

STATE FOR USAID

E.O. 12958: N/A
TAGS: ECIN EAIR EAID EFIN IT UNGA
SUBJECT: DEVELOPMENT FINANCE: ITALY SAYS ANY GLOBAL TAX
MUST BE VOLUNTARY

REF: STATE 162146

Sensitive but Unclassified. Not for distribution outside USG
channels, not for Internet publication.


1. (SBU) Summary: Italy does not oppose global tax schemes to
fund development assistance, provided such programs are
voluntary. There are no plans here to impose a surcharge on
international airline tickets, and Italy would resist efforts
by the EU to imposed such a tax on member states. Italy is
supportive, in principle, of the International Finance
Facility (IFF),and plans to join a pilot IFF to fund
immunization programs. End summary.


2. (SBU) Econoff delivered reftel points to Claudio Spinedi
in the Ministry of Foreign Affairs Directorate General for
Multilateral Economic and Financial Cooperation. On "global
taxes," he characterized the Italian position as "not very
far" from the United States in that Italy does not want new
external taxes imposed on its citizens. Rather, Italy would
only support a tax on international airline tickets or
financial transactions that is fully voluntary for individual
states. Italy would "not look favorably" on an attempt to
require the collection of such taxes in EU states, but has no
problem with other states, such as France, placing a
surcharge on tickets sold within their borders.


3. (SBU) On air travel taxes, Spinedi agreed with USG
arguments that imposing a tax on air travel may be
inappropriate, given the hard times faced by the airline
industry. (Econoff also spoke with National Civil Aviation
Authority (ENAC) International Affairs Director Fabio
Marchiandi, who stated the airline ticket surcharge would be
unpopular among Italian aviation interests.)


4. (SBU) Italy supports "in principle" the UK-proposed
International Finance Facility, Spinedi explained, but does
have concerns about the "financial and governance mechanisms"
of such a system. Italy is considering participation in a
smaller, separate pilot facility to support immunization
programs in the developing world. Spinedi agreed that
recipient countries may lack the capacity to absorb the
larger aid flows effectively, but Italy is supportive of the
concept of an IFF.


5. (SBU) Separately, Econoff met with Francesca Manno and
Maria Luisa Panzica of the Finance Ministry's International
Relations Office. The two expressed some support for the
airline ticket surcharge, but acknowledged that
implementation could be a challenge. Manno believes that the
recent proliferation of international development initiatives
spread out among different Italian ministries result in
overlap and monitoring problems. Manno expressed her
personal opinion that the MFA should oversee all Italian
development initiatives to avoid these problems.
SPOGLI


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2005ROME02998 - Classification: UNCLASSIFIED