The item "Income taxes" is detailed below:

2011 2010 Change
In thousands of Euro
Current taxes 39,024 38,716 308
Deferred tax liabilities (6,719) 2,267 (8,986)
Total 32,305 40,983 (8,678)

Taxes for 2011 were equal to €/000 32,305, and account for 40.7% of earnings before tax. In 2010, taxes were equal to €/000 40,983, and accounted for 48.9% of earnings before tax.
The major decrease compared to 2010 is due to lower earnings before tax and to the recognition of deferred tax assets on losses that can be carried forward to future years.

Reconciliation in relation to the theoretical rate is shown below:

2011
In thousands of Euro
Earnings before tax 79,328
Theoretical rate 27.5%
Theoretical income taxes 21,815
  
Tax effect arising from the difference in foreign tax rates and theoretical Italian rates 1,574
Effect arising from changes in Earnings before tax due to the application of tax regulations 9,843
Reverse deferred tax liabilities allocated in previous years for time changes (9,838)
Reverse deferred tax assets allocated in previous years for time changes 10,564
Reverse deferred tax assets allocated in previous years for tax losses 0
Tax effect arising from taxes on income produced abroad 3,154
Other differences 398
Expenses (income) from the Consolidated Tax Convention 122
Income taxes referred to previous years 1,323
Tax effect arising from deferred tax liabilities allocated for time changes 11,102
Tax effect arising from deferred tax assets allocated for time changes and tax losses (19,547)
Tax effect arising from the exemption of income generated in Vietnam (9,106)
Tax on the distribution of dividends 6,850
  
Regional production tax and other local taxes 4,051
  
Income taxes recognised in the financial statement 32,305

Theoretical tax rates were determined applying the corporate tax rate in effect in Italy (27.5%) to earnings before tax. The effect arising from the rate of regional production tax and other taxes paid abroad was determined separately, as these taxes are not calculated on the basis of earnings before tax.