THE FISCAL PACKAGE: warm panels without a design, the bulk risks being a waste

the “Salvo Intese” government gives yet another kick to the jar by sending it forward with the layoffs, but doing very little for a truly definitive solution to the Italian economic and employment problem. Only one or two measures make sense from this point of view, the rest is practically in the wind.

Let's start with what is useful:

  1. the reduction of 30% on employees in the South can make sense, even if we continue with a “Supply side” policy which turns out to be senseless without a recovery in demand. Furthermore, the measure is financed only until the end of the year, postponing the possible extension to 2025 and beyond, but in a reduced form, and Sub Judice of Brussels, so as not to miss anything;
  2. renewal of the "Emergency income" of 400 or 800 euros…. which looks very much like an electoral pocket money for the South. I put it in the profits, even if maybe something different could have been studied.
  3. 1.67 billion to municipalities and metropolitan areas, four coins that go at least to those who then spend it on the territory.

Let's see what is useless and / or harmful:

  1. 500 million for the auto sector for the purchase of cars with low or zero emissions. therefore we make a direct contribution to foreign companies that produce cars. Relapse on the dying Italian seven equal to zero, but we have to pretend to do something;
  2. 50% of payments and contributions suspended in March, April and May must be paid by September 16 in a single payment or in four installments while the remainder can be spread in 24 installments starting from January 2021. Therefore, from September the companies will have quite a bit of an increase in the contribution weight. Just what it takes. The deadlines for resuming tax collection after the suspension of the terms of payments from payment notices and executive notices on tax revenues were also deferred to October 15, 2021. then in two months the famous will arrive There is also the extension until 31 December of the exemption of Tosap and Cosap for the catering activities damaged by Covi- Practically charity and in any case it is only a postponement of a few months;
    3) The moratorium on loans and mortgages for SMEs has been extended until 31 January 2021. The deadline, originally set at 30 September 2020, is extended until 31 March 2021 for companies in the tourism sector. So they will have a few more months to organize their bankruptcy, to reorganize the books before taking them to court, because after a summer at a minimum, when it went well, it is not clear why they should go on;
    4) possible sale of Sace to the Ministry of Economy and Finance. The project is a reorganization of the credit insurance and export support company, now under the umbrella of Cassa Depositi e Prestiti. A 4.5 billion euro operation. On the other hand, already today, due to the provisions of the Liquidity decree, Sace, while remaining formally under the banner of Cdp, is in fact headed by the Mef. So in the end with public money they played a game of power within the government, part of the competition between PD and M5s;
    5) Cashback fund for digital payments increased to 1.7 billion. A demagogic failure.

At the end of the 25 billion, the bulk, spent without a precise design and distributed in a series of shortcuts, is wasted between 50% and 60%. No industrial policy, no organic recovery plans, no organic economic recovery plan, no monetary instrument. Small tips that dry up resources without any specific purpose, just what this government can do ….

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The article THE FISCAL PACKAGE: warm panels without a design, the bulk is likely to be a waste comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Sat, 08 Aug 2020 10:00:36 +0000.