Premier Silvio Berlusconi's Cabinet has proposed giving local authorities in Italy greater control over taxation, in a nod to a crucial government ally.
The Northern League has long pressed the government to give greater autonomy to the country's regions. The League complains that tax money from Italy's rich north goes to the underdeveloped south.
The measures would also increase the ability of local authorities to spend the money raised.
Roberto Calderoli, a minister and League official, said there was consensus among the Cabinet for the changes. The League's better-than-expected showing in 2008 parliamentary elections helped Berlusconi's conservative alliance secure a major triumph.
Parliament must approve the measures proposed Friday.
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