Friday, February 26, 2016

EU: “From Italy risks to Eurozone” – TGCOM

Italy “is a source of potential spillover effects for other Member States of the Eurozone”. And ‘what emerges from the report of the European Commission on imbalances macro of the boot. “The structural weaknesses continue to restrain Italy’s ability to grow and react to economic shocks”, and then “the modest recovery and the structural weaknesses of the country adversely affect the recovery and growth Europe . “

 EU Commission: Italy and the  potential impact on the Eurozone

growing spending and unbalanced ” – a public spending on “steady growth, more and more biased” in favor of the elderly and on which they weigh the costs of debt servicing “much greater” than the rest of the euro area, underlines the EU Commission. “it is urgent – reads the paper – the challenge of debt sustainability “: to respect the stability Pact rule” will require a very high primary surplus, at around 4%. “

All these” risk sull’anemica affect potential growth in the country. “Hence the need to” fully implement the pension reforms, notably that of 2012, and carry out a systematic review of spending at all levels of government “that can increase their efficiency and make it more growth-oriented.

“brain drain can impair growth” – the increase in emigration – underlines the report – it reflects the better opportunities and working conditions abroad. Surveys indicate that, compared to their counterparts who work in Italy, young Italian graduates working abroad not only earn more but are more often hired on permanent contracts, and believe that their official capacity is more suitable for work they do.

In particular, among the Italians in possession of a doctorate, those working abroad say they have better job opportunities and much higher salaries. This explains their very low propensity to want to return to Italy. Consequently, this phenomenon does not fall within the definition of “brain circulation”, ie when people are temporarily abroad for study or work, but then return to their country of origin.

As for the social harm, the report noted that the “brain drain” implies a dual financial cost: firstly, the public expenditure on education of students who then finally leave the country, and, secondly, in terms of future loss of revenue for social contributions taxes that highly skilled migrants would pay working in Italy.

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