Italian Prime Minister Matteo Renzi vowed to cut the tax burden by a double-digit figure by the first half of 2014 in a speech to the Senate in which he outlined an ambitious series of measures on Monday, Feb 24, according to Reuters.

The tax wedge, which is the difference between what a company pays each worker and the worker's take-home pay, was estimated to be 47.6 percent in 2012 by the OECD, the sixth-highest in the group of the 34 member countries.

Renzi said he would pay off all arrears held by public administration through a different use of the state holding company CDP, would set up a guarantee fund for small companies, and would free up billions of euros to invest in school infrastructure.

He also said he aimed to put forward a comprehensive justice reform package by June and boost welfare payments for the unemployed.