EU Commission: weakness of Italy also affects Eurozone – The Republic

Rome – “Given its centrality in the euro area, Italy is a source of potential spillover effects for other Member States, while the Italian revival affected in turn to external conditions “This is what says the EU Commission report on Italy in 2016 presented today with ‘Country Reports’. “The modest recovery and the structural weaknesses of the country adversely affect the recovery and growth potential. The size and dense commercial and financial connections that characterize the Italian economy – the document notes – imply that his condition may have major consequences for the other EU economies. At the same time, external demand and inflation developments are of primary importance for the Italian economy’s recovery, for their efforts to reduce the debt / GDP ratio and the return competitiveness. “

the blame the economic policy of Finance Minister Pier Carlo Padoan that responded immediately to the sender. Thanks to the economic policies of the Government and growth-oriented structural reforms approved and implemented, “Today Italy is a stronger country and the risk that weaknesses can affect the euro area is definitely smaller than it was before reformer cycle “. And ‘what sources say the Ministry of Economy, commenting on the EU report on macroeconomic imbalances. The problems that the Commission sets are always the same, for a long time and well before the present crisis. Nothing new so of debt and competitiveness. The EU “neglects” the taxman: the cancellation of the labor component from the calculation of IRAP and the tax reform that is fostering a better level of spontaneous fulfillment.

THE CRITICISM
On taxes and home disappointed directions . The EU ‘wand’ Italy for the choices on taxation on real estate starting from the abolition IMU that – is explained in the report on our country just released by the Commission – “is not in line with the repeated recommendations Council to shift the tax burden from production to consumption factors, and immovable property “. In addition, the comission explains, “was not followed up on key elements of the country-specific recommendations, such as the revision of cadastral values ​​and tax breaks.”

Italy has made some progress. “Overall, Italy has made some progress in the act on the specific recommendations of the Country 2015″. So the conclusions of the EU Commission report on macroeconomic imbalances where they remember the reform of the labor market, education and “important” measures for banks. But “in some key areas there is scope for further action”: spending review, tax on first homes, land registry, tax authorities, collective bargaining and terms apply.

“of a leak Brain drain” . “The brain drain can cause a loss permanent net of highly qualified human capital, to the detriment of Italy’s competitiveness. In the medium and long term may affect the prospects for Italy’s economic growth and also its public finances “. It is the contention of the EU Commission report on macroeconomic imbalances in the chapter devoted to the labor market. According to the study the number of highly qualified young people who migrate abroad has grown rapidly since 2010 and has not been offset by the Italian streams with equal qualifications, who have returned to their homeland. Even less – says the EU report – one can speak of a ‘brain exchange: many highly qualified Italian Italian workers leave the country, but only a few citizens of other countries, of the same level, choose Italy as the destination.

Topics:

EU

European Union

area euro

eurozone

European Commission

report Italy 2016

economic policy

Minister of Finance

Debt GDP

GDP

GDP

Debt

tax

home

brain drain

Starring:

pier carlo Padoan

Juncker

Jean-Claude Juncker