Padoan is back in Australia after 7 months: the G20 in Sydney in February, where he participated as chief economist of the OECD had left in a hurry to return to Rome and take the oath as minister.
Growth
A few weeks after his debut in Washington in his new role as making a speech full of promises and commitments. Here in Cairns, more or less in front of the same people, on the eve of the definition of a law of stability difficult because it must take into account the growth “much lower” than expected, and therefore ‘destination resources available, “states that he did “something different” from that of five months ago for two reasons. Because “since then, unfortunately, the performance has been worse than expected, and so it is even more urgent to continue the policy of the government.” And in the meantime because “the government has done many things, then announced that only.” So, with colleagues from the G20 Padoan described how Italy is proceeding on four directives: the consolidation of the public budget, first of all, “indispensable even more so for a country with debt as high as ours,” trying “to compose the balance sheet items so friendly, friendly, for growth. ” The minister explains what this means “friendliness” and thus enters more into the heart of the stability law to be passed by the Council of Ministers on 15 October. It means, he says, that the expenditure must meet before those for investment, research, school. And on the revenue side we must reduce taxes on labor and business compensandole with the levy on other items, first of all wealth.
No increase in taxes
But there will be no new imposts, “do not raise taxes,” he hastens to specify. Those on wealth, however, “we have already made,” and inside there is also the Tasi, because “in Italy most of the wealth is owned by the estate.” And then there will be no repeats, the reshaping of VAT, nor a touch of inheritance, a hypothesis “out of nowhere” and that “I do not know anything.”
The fees, however, “the government will fall,” he adds and says: “We have cut down the fees for those on low incomes and on businesses and not going back. We will try rather to continue in this direction with the law of stability. ” Well if budget constraints are tight, “we are seriously considering the possibility of deepening the cut in the tax wedge and we are thinking of doing so from the business side.” In any case, the tax relief will be covered by spending cuts, ie the spending review ensures that Padoan not want to hear about figures for now, although he says the “space saving resources such ministries are many” especially “looking at the waste and inefficiencies. ” Rather, the minister is keen to stress how in his speech to G20 has also focused on another “pillar” of the strategy of the government, structural reforms including the ‘fundamental’ work, favorably impressing his colleagues for “acceleration date ‘.
Investments
Lastly, investments, which are one of the main topics of the agenda of G20, as well as being the first place that the Italian Presidency of the European Council. In carnet government, remember Padoan, there are regulatory incentives, incentives, diversification of forms of financing for companies and also a boost to public investment, he adds, citing the law on competitiveness and unlock the decree-Italy. As President of the European, then our country has given a mandate at the end of the work of Milan ECOFIN, the Commission and the EIB to examine concrete programs for stimulating investment, necessary for economic recovery. And here Padoan clarifies the role of Italy in Europe, debate on flexibility and rules. “The rules exist because they are necessary to bring together 28 countries. No one controls anyone, there are no rules decided together that work for everyone. ” And when it comes to flexibility necessary to say that “the system of rules that is used to monitor national policies, there is a growing space for the evaluation of structural reforms.” For a country, that “it is not only important to keep their accounts in order but also implement the necessary reforms.” This is a very important fact, “a new fact which must be further refined and offers room for flexibility” because it gives the countries that make reforms more time or at least less rigidity in order to achieve structural balance budget and also for the rule of debt . The reforms are in fact a positive element for the assessment “and if these are not done shooting the recommendation.” Germany, too, remember Padoan, for example, to receive the liberalization.
September 21, 2014 | 08:29
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