Because the criticisms by the CGIL, Pd and M5s of Melon’s cut in the tax wedge are incomprehensible
Schlein, Conte and Landini expressed rancorous remarks against the government's Labor decree. Unbelievable but true. Gianfranco Polillo's comment
The controversies of the union and of the left against the announced decree law on the cut of the tax wedge are, frankly, incomprehensible. Their acrimony hints at a growing state of embarrassment. According to current wisdom, Italy would be governed by a right wing that couldn't be more right-wing, and instead the choices made have more of a left-wing semblance. In other words, they take charge of social unease and try, in some way, to remedy it. Without of course breaking the public accounts: a primary good.
Obviously it is a different path from that pursued by Giuseppe Conte, especially after the embrace with Nicola Zingaretti, then secretary of the DS. That idea – bonus for everyone – was shelved after calculating the cost of those measures more precisely. From the 10 billion euros allocated to cover the costs of the basic income, which Maurizio Landini himself seems to have married today, we quickly moved on to 116.3 billion to finance the facade bonus, 110 percent and anti-seismic renovations. Money which, not being available, will weigh on future budgets, especially as regards the "cash".
The result will be a sharp increase in the issue of government bonds and therefore a more accentuated trend in public debt. All at a time when the European Commission seems willing to launch the new rules of the Stability and Growth Pact. Which will be centered precisely on the reduction of the debt/GDP ratio. Given these circumstances, Giuseppe Conte, instead of railing against an alleged "confusional state" of the Government, would do better to keep quiet. And meditate on the lightness of the choices made by your government in the past.
THE LEAD FEET OF MELONI AND GIORGETTI
Giorgia Meloni and her economy minister, on the other hand, are moving with lead feet. This is demonstrated by the endorsement received from the legendary Lars Feld : director of the Walter Eucken Institut, as well as professor of economic policy at the University of Freiburg. But above all one of the most influential characters among the Berlin hawks. Who had not hesitated to acknowledge some time ago, as reported by the Republic, that "Meloni" was "standing up to its government partners". A judgment that will certainly not be a medal to be attached to the collar of a jacket, but such as to guarantee, at least, a serious starting point for any discussion. As long as there are no biases and preconceptions.
HOW IS ITALY
After all, the country is reacting well. He has denied the all too easy prophecies about the failure to hold our government bonds. The GDP in the first quarter grew well beyond initial forecasts and above the European averages, especially compared to its main competitors: France and Germany. Obviously it's not all roses and flowers. Inflation reared its head again in April (up 8.3 percent), against a European average of 7 percent. However, it should be remembered that in the last four or five years the Italian one had been lower than the European averages. The picture will therefore also be patchy, but it certainly cannot be said that we are toasting on the deck of the Titanic.
On the contrary: it is easy to hypothesize if the devil, in the new guise of Vladimir Putin, will not tail us, that in the second half of the year, a possible further growth in GDP could be forecast beyond the 0.9 per cent, already revised . So much so that there are already those who venture a 1.2 percent. Were this the case, there would be other resources that could be used both to further reduce the tax wedge. Both to make it structural. So far, the resources committed have amounted to 7.5 billion: 4 in the budget law and another 3.5 with the next decree. All in the space of a few months.
SCHLEIN, COUNT AND LANDINI'S GRIND FOR THE WORK DECREE
The relief of the 80 euros decided by Matteo Renzi a few years ago committed around 10 billion. Figure not too far from those proposed by the current government. Then the opposition chewed bitterly, but made the best of the bad situation. Renzi was winning the first round of his match, better not to get in the way so as not to give the idea of having turned into "rosiconi". Then fashionable term. Elly Schlein, Giuseppe Conte and Maurizio Landini instead chose the exact opposite, giving vent to a rancorous discontent. Frankly it doesn't seem to be the best choice. But to posterity the arduous sentence.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/decreto-lavoro-critiche-incomprensibili/ on Wed, 03 May 2023 05:40:03 +0000.