In a letter dated Dec. 14 published on the European Union legal website, the ECB said the programme of incentives launched by Rome to reduce reliance on cash appeared to be “disproportionate”.
The letter was signed by Yves Mersch, who on the same day ended his mandate on the ECB’s executive board.
“The ECB would appreciate that the Italian authorities give due consideration to the above observations by honouring the obligation to consult the ECB in the future where applicable,” the letter said.
Reacting to the letter, the Treasury said it would press on with the plan adding the ECB opinion was not binding.
“The formal remarks made by Mersch do not appear to be justified,” the Treasury said.
Italy introduced the scheme earlier this month, offering shoppers refunds on purchases made by cards as part on an on-going campaign to discourage tax evasion.
Source: Economy - investing.com
