The “Semaphore” coalition continues in Germany, but nothing good for Italy

The red (SPD) Green and yellow coalition (FPD liberals) announces that they have found a common platform for discussion, so now we will continue with the talks on places and to refine everything.

To please everyone, a mix of the parties' proposals was made, in my opinion without evaluating their objective homogeneity and compatibility. Eg:

• The only issue that everyone agrees on is the omnipresent de-bureaucracy and digitization. No politician in the world, at least in words, wants more bureaucracy, and digital is the magic wand for all evil, rightly or wrongly.
• The Greens have obtained an anticipation of the exit from coal, an "early package" to fight climate change and more investments in renewables, with solar roofs for all and wind turbines installed very frequently. In the meantime, however, coal will be replaced by natural gas plants, which will expose prices to very strong fluctuations;
• The SPD gets its workhorse, namely the raising of the basic wage to 12 euros per hour and a revision of the Harz IV system.
• Liberals take home a good booty. First of all, the promise of no tax increase. Then the return of the “Debt brake” and the adhesion to the European stability and growth pact “For climate-friendly investments”. In addition, more flexibility in the labor market with the possibility of mini jobs for just 10 hours a week. More incentives for active work.
• Pensions and retirement age will not be affected, but a review of private pensions is planned;
• If taxes are not felt, they are expected to increase, on the contrary, strong contributions are expected for companies that will be able to devalue non-green assets and lead to losses and capital losses;
• Naturally, the entire energy supply will have to be more economically affordable for families;
• Fidelity to NATO is confirmed, a greater “Protagonism” in Europe and the preparation of a commission of inquiry into the withdrawal from Afghanistan.

There are many contradictions: debt curbing and heavy investments, accompanied by a reduction in energy bills: who pays for the investments? No pension reductions, but no tax increases. Increase your basic pay, but you make your work more flexible. In short, a nice mess. One thing is certain: we do not have anything good to expect, because the only obvious thing is the desire of all parties to return to austerity policy in Europe. Germany will support the austere countries against those of the south, so the party is over and we are back to the "Greek tragedy".

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The article Coalition "Semaforo" continues in Germany, but nothing good for Italy comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/coalizione-semaforo-prosegue-in-germania-ma-niente-di-buono-per-litalia/ on Fri, 15 Oct 2021 20:21:24 +0000.