MILAN – Jobs Act, the tax wedge and judicial reform. These are the themes that will be on the table of the meeting scheduled tomorrow at Palazzo Chigi between the Director General of the International Monetary Fund, Christine Lagarde, and the president of the Council of Ministers, Matteo Renzi. If the whole, in fact, the French economist promotes labor reform contained in the Jobs Act because “fights the generalized duality” between those who have strong protections and temporary workers unprotected, can not hide his doubts about marginal tax rates and wedge tax. On the other hand said it clearly intervention for the inauguration of the academic year at the Bocconi University in Milan: the Jobs Act will have to be accompanied by measures to reduce the tax burden. Otherwise the reform may lose its positive effect. Especially in its goal of combating youth unemployment. The tax wedge, in fact, “remains far beyond the OECD average. Return the tax wedge on labor in Italy to the level of the average European could lower youth unemployment of 4-8 percentage points. This could mean from 60,000 to 130,000 young people who would return to work. Seven hundred thousand dissocupati are too many, as the whole Umbria. ” On the other hand to boost employment serves more growth: it is the “top priority” because a percentage point of GDP in most reduce youth unemployment by 0.6%: “About 10,000 people could go back to work.” At the premier Christine Lagare also remember that “a major cause of the weakness of the working Italian is the length of the processes. By some calculations show that in Italy it takes more than a thousand days to enforce a contract in court, more than twice the OECD average. Increased efficiency of the judiciary would lower the cost of credit, encourage investment and therefore facilitate the deployment. “ In his speech at Bocconi, the French economist stressed positively the government measure for active labor market policies “which provide aid for the unemployed receive training and assistance in seeking employment they need. Austria, Finland and Sweden show how these policies can work.”
The director of the IMF has also emphasized that the ECB has “taken bold steps in recent months”, and also indicated that “is ready to diversify even more its financial statements, including through the purchase of sovereign bonds. It ‘a given definitely positive although monetary policy alone is not enough. “Referring then to the” quantitative easing “to the study of Frankfurt added:” The eurozone has to fire all the cartridges “.
- Arguments:
- jobs act
- labor reform
- tax wedge
- Starring:
- Christine Lagare
- Matthew Renzi
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