Does the Bank of Italy want the Great Reset? (by Ilaria Bifarini)
A long speech, lasting about an hour, detailed on the economic trend recorded during the annus horribilis of the declared pandemic, but at the same time of a programmatic nature, which clearly outlines the plan for the future of Italy: it is the presentation of the Report Bank of Italy's 2020 Annual Report held yesterday in the Senate by Governor Ignazio Visco.
" A future built on public subsidies and incentives is not possible ", he explained bluntly, announcing the gradual exit from the supports, which will be aimed at those who face contingent difficulties but have resilience and not those companies without prospects of stay on the market. A market of the future that reflects the guidelines and investment of the PNRR , focused, as exemplified by the new ministries of the Draghi government, on ecological and digital transition .
What productive activities are now obsolete in this new context and therefore destined to disappear? These are the "many micro-enterprises", too many for the governor and for the plan to be implemented, which have low productivity compared to the other more competitive ones of virtuous countries, companies with less than 10 employees, which in Italy represent almost 50% of the productive fabric, double that in the rest of the EU.
"The specialization in traditional activities and the small size reduce the demand for specialized personnel, triggering that vicious circle of low wages and modest employment opportunities that discourage investment in research and education"
Historical flagship of the national economy, SMEs in the Belpaese constitute a varied universe, made up of family-run businesses, small local craftsmanship excellences, food and wine companies, processing chains, located both in the industrial North and in the southern traditions. culinary. They offer work to 78.6% of employed people (pre-Covid data) and constitute almost all activities in Italy, with a higher percentage than the rest of Europe and second among OECD countries. A peculiarity that the proponents of neoliberalism do not like, who have long declared war on entrepreneurial “dwarfism”, accusing the small size as the main obstacle to the productivity and innovation of our economy.
The same goes for the banking system. According to Visco, the traditional small bank model is now outdated and needs to be reviewed with combinations to be implemented immediately to support profitability: “several intermediaries, for the most part small and with traditional operations, have structural weaknesses; in some cases they are due to inadequate corporate governance and the weakness of internal controls, in others to the reduced ability to access capital markets, to innovate and to exploit economies of scale and diversification ” .
As for businesses
“Even in the management of credit and savings, the new equilibrium will be different from the current one, who will not be able to prepare in advance for the change and will not adapt quickly will be destined to lose ground rapidly” .
The vision of the future and of the new normal is clear, the same already expressed by Draghi, by Monti before him, by all the elite of the neoliberal ideology and most of all represented by the Great Reset declared in Davos , for the realization of which the Covid emergency it represented a precious and unrepeatable opportunity. It is the long-awaited implementation of theFourth Industrial Revolution , based on artificial intelligence and the 5G network, which requires a preventive cleaning up of our business system, now considered anachronistic, in favor of a corporate gigantism, made up mostly of large hyperdigitalized multinationals, with a brushstroke of green to make room for sustainability , a term as abused as it is ambiguous in its content, like the omnipresent resilience .
Obviously, the whole speech was filled with praise for the work of the EU, the strengthening of union and cooperation mechanisms and the hope for the imminent creation of a common budget, as well as a digital euro, to which the Bank of Italy will be committed. at the forefront.
There is also a positive note, taken up with enthusiasm by all the agencies in conjunction with the OECD statement : GDP will return to growth in 2021, exceeding 4% . The figure takes on value only if compared to the collapse of our gross domestic product in 2020, equal to 8.9%, double the loss of world GDP (4.4% ) and well above the rest of the EU (6.3 %), to which must be added a fall in employment of almost 1 million workers (945 thousand). The particularly negative performance of Italy is due to the duration and rigor of the restrictive measures – we were the first to close and among the last to reopen – and the preponderant weight of the tourism sector, about 13% of GDP, heavily damaged by the measures governmental.
An inevitable rebound, and indeed rather contained we can say, but for Visco, needless to say, the alleged recovery would be attributable to the mass vaccination in progress. Too bad Draghi himself said that mutations can make vaccines useless .
The merit of this exhaustive report by the owner of via XX Settembre consists in having swept the field from every misunderstanding: after a welfare and paternalistic phase of the State, aimed at ferrying the population towards the new normal, we move on to the operational realization of the plan of the Great Reset. With the end of the freeze on layoffs, state loan guarantees and debt moratoriums, which have allowed many companies to survive despite the imposition of a ban on work, and the granting of subsidies only to activities in line with the model of planned development, there is no more room for small businesses and local traditions. The future belongs to giants and hyper-digital homologation.
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The article Does the Bank of Italy want the Great Reset? (by Ilaria Bifarini) comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-banca-ditalia-vuole-il-great-reset-di-ilaria-bifarini/ on Sun, 06 Jun 2021 14:28:12 +0000.