Because Confindustria and the government do not love each other
What happens between Confindustria di Bonomi and the Conte government?
It has long been known that between Carlo Bonomi and the current government there was no good blood. Even before his election, which was almost plebiscitary, as president of Confindustria. His approach to the country's problems is too direct. The tendency to say what needs to be said is not very diplomatic. Bases on which the new president had built his entire career. Keeping the point, however, won't be easy. Perhaps it will not take that "beastly physique" of which Luca Carboni sings. But certainly an adequate temperament.
Almost almost, one would want to give it up. Except you can't. You can't if you want to represent the Italian industrial and production system. Which in recent years has done everything by itself. Going against the tide. Overcoming the obstacles of a policy, at best, inconclusive. A Europe that is too closed in those certainties which, only today, are partially crumbling. In 2011, spreads in Italy had reached 570 basis points and the current account deficit in the balance of payments had stabilized at around 3 per cent of GDP.
After Mario Monti's deflationary turn, which had forced hundreds of businesses into bankruptcy, the survivors had not pulled the oars into the boat. But they threw themselves headlong into the stormy waters of international markets to recover the ground that had been partly lost. Result? We leave it to Ignazio Visco, Governor of the Bank of Italy, to paraphrase his speech during the days dedicated by the Prime Minister, Giuseppe Conte, we will not be able to say how profitable, listening to the so-called "States General"
"The reform action can be based on the strengths of our economy, – affirms the Governor – which have been affirming themselves even in the last difficult years and which should be remembered." If infrastructures have held up in any way, the best performance was that of the “manufacturing sector” which, “already after the 2011-12 sovereign debt crisis, quickly regained competitiveness, driving the balance of payments into surplus. Net foreign debt is now almost nil. The real and financial wealth of households is high and their debt is among the lowest in advanced countries; that of businesses is below the European average; overall, private debt amounts to 110 per cent of GDP in Italy, even lower than that of Germany (114 per cent), half of what is recorded in countries such as France (215 per cent) or Netherlands (258 per cent) ".
These are the progress made in the last 6 or 7 years, destined to counteract a continuously increasing public debt. Reflection of an institutional paralysis, unable to decide. With a policy that toyed with the theses of "happy degrowth" or practiced in an attempt to demolish the "caste". With the aim of replacing it with a staff that is certainly not better and a professionalism to make us regret the good time passed. Under these circumstances, businesses had to move in solitude. To face, with bare hands, foreign competition supported by the presence of other states. Winning even at home, as the European Commission (COM (2019) 651 final) says, a "context" that is "not favorable" to them. Nor being able to count on an international presence from Italy, capable of defending the reasons for "development", against the simple rhetoric of financial stabilization.
Embarrassed, but above all unjust, the latest response from the Deputy Minister of the Economy Antonio Misiani: "less controversy and more proposals". In those eight folders, sent to all Confindustria associates, there are many proposals. Of course many are uncomfortable, but can we think of getting out of a crisis that is unprecedented, in the most recent history of humanity, with the warm panels of an old tradition, moreover too worn? Simply rhetorical question. As rhetoric is the tired liturgy of a government that promises new wonders every day. Except then being faced with 684 decrees implementing the measures contained in the decree-laws of a phantom maneuver. Of which, as Sabino Cassese recalled, "67% on stand by and 146 already expired".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-confindustria-e-governo-non-si-amano/ on Tue, 01 Sep 2020 06:39:33 +0000.