Monti’s conditions to say yes to the government (and damage Italy for the second time) Liturri da Startmag
Giuseppe Liturri analyzes Mario Monti's editorial on StartMag and makes an admirable piece, of which we present two extracts, to make you water. The Senator actually always seems to be engaged in a sort of personal war against the Italians and their enslavement. However, now we present the two excerpts from Liturri's article.
The doubt that arises in Europe is whether Italy is able to stay in the EU as a normal country. When the EU, as is right in normal times, asks each state to contain the public deficit and does not finance it by creating a European currency, many in Italy scream against "austerity". On the other hand, when the EU, in exceptional times of pandemic, gives enormous European resources to States, more than all to Italy, our country seems dazzled by sudden wealth, it lingers in political crises in which the country's interest is at its peak a fig leaf.
Here there is understanding for the professor. He must defend the work of his experience of government as "normal", as opposed to the exceptional nature of the present moment. No, these solutions are normal and it took the Covid emergency to bring down castles of lies built with impunity for years. In the past, asattested by the OECD and other leading economists , we have been unfairly harmed. Today there is no "sudden wealth". Only unsustainable dogmas have fallen.
Speaking of the latter, I expect the government to better explain to Italians that today there are exceptional reasons for not caring too much about the increase in debt, but that probably before the end of this legislature – that is, before the end of the government that maybe it will see the light in the coming days – some things will change in the EU: in some form, we hope more correct than the previous one from an economic point of view, a discipline of public deficits and debts will be reintroduced, and we more than others will arrive at that appointment later the surge in recent years; moreover, the "strategic review" of ECB policy, which Christine Lagarde has initiated, will hardly allow for long reliance on the possibility of financing the Italian deficit at zero cost.
It is always good to hear the truth. It seems that we can ignore the increase in debt, albeit under the fig leaf of "exceptional reasons". Were not the reasons that advised not to condemn Italy to a second recession between the end of 2011 and the beginning of 2014 worthy of attention? It seems so much "Cicero pro domo sua". There is also the announcement of the return of the EU to the old path. This with all due respect to those in Italy who are under the illusion that a mythological next Conference for Europe will reform the Stability Pact. The reform is ready and will condemn us to a decade of primary government budget surpluses, otherwise we won't see a cent from the Recovery Fund. Monti also announces the return of the ECB to the ranks and this remains to be seen. Not even the Fed in the US was able to re-enter the government bond purchase program. At most, it will be possible to stop additional purchases, as already happened in 2019, but the renewal of the expiring securities could take a very long time.
It therefore becomes important to ask urgently the question of how much it makes sense to continue to "restore" with debt, that is at the expense of the Italians of tomorrow, the losses suffered due to the lockdown, when for many activities it would be better for the State to favor restructuring or closure, with the necessary social accompaniment, to allocate resources to activities that will develop, instead of those that unfortunately will not have a tomorrow.
Here we are at Zenit. Since debt is not good (but then only Recovery Fund loans are okay?), Then it is better to accompany a few thousand hotels, restaurants, cultural and recreational activities with all the related activities towards a sweet death, right senator? What is this economic Darwinism that we would not have imagined even in the worst of nightmares? What are the "activities that will develop"? Serfdom? Have you ever seen a doctor decide that the injured caused by the fall of an asteroid (because Covid is an exogenous event of a similar nature) should not deserve treatment, because we would be in debt?
We refer you to Startmag for the rest of the demolition of Monti's article, which does not present a line that is justifiable from an economic or logical point of view. We ask ourselves, at this point, what is the justification for Monti's presence in the Senate. What merit does the former rector of Bocconi have for his office?
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.
The article Monti's conditions to say yes to the government (and damage Italy for the second time) Liturri from Startmag comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/le-condizioni-di-monti-per-dire-si-al-governo-e-danneggiare-per-la-seconda-volta-litalia-liturri-da-startmag/ on Mon, 18 Jan 2021 07:00:45 +0000.