Italy approves 300 mln euros of industry incentives

ROME, March 19 (Reuters) - Italy's cabinet on Friday approved a package of up to 300 million euros in industrial incentives, including white goods (IND.MI) and scooters (PIA.MI) but excluding the key car sector.

The measures mark a sharp reduction from last year's 1.2 billion worth of incentives, which included a cash for clunkers scheme. Italian media have reported that two-thirds of this year's package will be funded by a tax amnesty which started in September and runs until April.

Car maker Fiat (FIA.MI), Italy's largest industrial group, has said it could post a flat trading profit in 2010 versus last year's 1.1 billion euros, after the removal of the incentives. (Reporting by Giuseppe Fonte; Writing by Daniel Flynn)