Bureaucracy eating 230 billion of our money – the Journal

from our Cernobbio

goes round and round, the priority remains the same: “Reducing the tax burden on businesses and households.” This is the bet that Carlo Sangalli, President of Confcommercio, asking the government to do. And there are two specific requests, not general: avoid the VAT increase in 2017 and allocated to the reduction Irpef all cuts against waste and evasion recovery. “Less taxes and less government spending is the recipe for a more dynamic and fair country” .Sangalli speaks to Forumannuale of its confederation of Cernobbio. It is the voice of the traders, a category among the hardest hit by the crisis with the fall in consumption and which still divides her time between light and shadow. The international situation is favorable: low prices of raw materials, to the minimum rates, exchange relationships that should encourage investment and exports.

Yet the Italian economy continues to stagnate, despite the proclamations of the Renzi government. Europe is growing, we exalt us by one 0.8. “In the positive international context and with the relaxing fiscal policy, frankly 1 percent growth was the least we could achieve,” sums Mariano Bella, director of Confcommercio Studies. There is a giant Italian problem that even this government seems to deal decisively despite some timid little step: “Public administration reform, efforts to reduce the bureaucratic burden on businesses, some measures of the Jobs Act, school reform, no tax increases” Sangalli lists. But the truth is that without “cortisone Draghi,” that is the money at no cost which allowed significant savings on public debt interest, would collapse. Nor potions ECB are sufficient: “We need specific therapies that depend only on us.”

The ballast identified by Confcommercio are four: the infrastructure deficit that hinder foreign investment, the excess bureaucracy (wasted time in public offices and delays of civil justice), the increase of lawlessness to businesses and households, inadequate school system in education. It would be enough just to get a lot: with a series of reforms that guarantee to reduce bureaucracy and lawlessness of 5 percent and to increase similarly infrastructure and human capital would be obtained 3.2 percent of the GDP to 45.3 billion euro. But Bella’s research department has produced data even more surprising: if each region reach the best performances (the Aosta Valley bureaucracy, crime rates in the Trentino Alto Adige, Piedmont infrastructure and the Lombard school system), Italy would find itself almost miraculously, an increase of the gross product of 16.1 percent of GDP with an explosion of 231 miliardi.È a dream book with the extent of the improvements within the reach of the country that depend only on us, the government and the reforms that will do. But it is not an Italy so unrealistic, because in some regions, the most virtuous, is already in practice. And they are all northern regions.

Here is another dramatic phenomenon reported by Confcommercio: the differences between North and South continues to widen. Sangalli said: “The South continues to lose weight in terms of residents, workers and income and recorded a reduction of inputs. In the South the problem of bureaucracy weighs twice that in the North-West and the crimes on companies is almost twice than in the North-east ‘. Traders are moderately optimistic about 2016 and expect a +1.6 per cent of GDP in spite of that “structural excesses and deficits of our country to every citizen costing 3,800 euro a year.” The photograph of a country “held back” and split in half.