We are in the midst of an economic storm. And this will make life in government more difficult. «It will be necessary – says Giorgia Meloni in the programmatic speech to the Chamber – to maintain and strengthen the national measures to support families and businesses, both in terms of bills and fuel. An impressive financial commitment that will drain most of the available resources and will force us to postpone other measures that we would have liked to have already started in the next budget law “. So, immediately an Aid decree law, with the extension of tax credits on bills for businesses and with the cut in excise duties on fuels until 31 December. In addition, the government will accelerate, “in every way”, the diversification of sources and national production: “Our seas have gas fields that we have a duty to fully exploit“. And constraints and obstacles to the installation of wind and solar energy systems will fall. After the Aid decree will come the budget bill for 2023which, however, will have little room for maneuver.
Attack on the ECB
All the more so since, to complicate the situation, says Meloni, she got into it the ECB which, “like other central banks, for the first time in 11 years”, has raised interest rates. “A decision considered by many to be risky and which risks having repercussions on bank lending to households and businesses and which is added to that already taken by the ECB itself to put an end, from 1 July 2022, to the program for the purchase of fixed-income securities on the market open, creating an additional difficulty for those Member States that have a high public debt ». The reply from Giuseppe Conte (5 Stars) is dry: “He hasn’t told us anything about the measures he intends to take on expensive bills, extra-profits and budget variances”.
With the maneuver, the government intends to support families and workers against inflation, reducing taxes on productivity bonuses, raising the exemption ceiling on fringe benefits and enhancing corporate welfare, announces Meloni. It will also be enlarged “the audience of primary goods that enjoy VAT reduced to 5%”.
Government Meloni, the latest updates
On taxes, the new president of the Council speaks of a “new tax pact” founded on three pillars. 1) Reduction of the tax burden with an IRPEF reform, with progressive introduction of the family quotient, 2) extension of the flat tax for VAT numbers with a turnover between 65 thousand and 100 thousand euros and introduction of the flat tax for all “on the increase in income compared to the maximum reached in the previous three years “. 3) Fight against tax evasion focused on “total tax evaders, large companies and large VAT fraud”. The reply from the secretary of the Democratic Party, Enrico Letta, lasts: “On the tax side we understood only one word: amnesties, amnesties, amnesties.”
Attack on Revenue
The fight against tax evasion will be accompanied by a “modification of the assessment criteria of the Inland Revenue, which we want to anchor to the amounts actually collected and not to simple disputes»Says Meloni. An attack on the Agency led by Ernesto Ruffini, where, however, it is observed that it is from the 2009-2011 agreement that the system for verifying the objectives is based on the “total income from law enforcement activities”.
Less taxes on labor
Still on tax matters, Meloni announces a reduction in the tax and social security levy on companies and workers, which, however, even this will have to deal with limited resources. For this reason, the premier says that the cut will take place “gradually” with the aim of achieving a reduction “of at least five points in the wedge in favor of businesses and workers”, to reduce labor costs and increase payroll. After all, she adds, the government’s motto will be “Do not disturb whoever wants to do it.” Those who do business “must be supported, not harassed”. As well as for self-employed workers, “often treated as children of a lesser god”, “adequate safeguards” will arrive.
To facilitate “family projects”, which “go hand in hand with work”, the government will encourage “female employment in every way, rewarding those companies that adopt policies that offer effective solutions to reconcile home-work times and supporting the municipalities to guarantee free nurseries open until the closing time of shops and offices ». Measures that, among other things, will help the birth rate in a country hit by a “demographic glaciation”.
This is a chapter where the limited room for maneuver will be felt. In fact, Meloni says that, for now, we can think of the “renewal of the measures expiring at the end of the year”. It should therefore be the social Ape, the Woman Option, but also Quota 102. Any other outgoing flexibility mechanisms must be “compatible with the resilience of the social security system” while for the future pensions must be guaranteed for the new generations, subject to the contribution calculation: “A social bomb that we continue to ignore, but which in the future will invest millions of current workers” who risk starvation pensions.
Poverty is “rampant,” Meloni said. But we do not fight with welfare but with work, he adds, citing Pope Francis. “We want to maintain and, where possible, increase the necessary financial support for those who are actually fragile and not in a position to work”. The others, on the other hand, will no longer receive the DRC, which, “for how it was conceived and built, represented a defeat”, but the tools for job placement will be strengthened. This passage was appreciated by Carlo Calenda (Action), for whom “the rest is crap”. On the other hand, the 5 Stars are ready for tough opposition.
The premier is concerned about the delays in the National Recovery and Resilience Plan. So far 15 billion have been spent compared to the 29.4 billion forecast. We must therefore accelerate“By agreeing with the European Commission the necessary adjustments to optimize spending, especially in light of the rise in prices”.
Here Meloni uses harsh tones: “We intend to protect national strategic infrastructures, ensuring public ownership of the networks, on which companies will be able to offer services under free competition, starting with those of communications”. And he announced a “national interest safeguard clause” on public concessions, “such as highways and airports”, because “the model of the oligarchs sitting on oil wells accumulating billions without even ensuring investments is not a free market model worthy of a Western democracy”.
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