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07 September 2020The higher investment expenses deriving from the Recovery Fund, estimated at over 41 billion per year, "could translate into a cumulative increase in the level of GDP of around 3 percentage points by 2025, with an increase in employees of around 600,000 units ".

It is one of the two scenarios developed by the Bank of Italy illustrated, in a hearing in the Budget Committee in the Chamber, by the head of the economic structure service, Fabrizio Balassone.



"Both scenarios - he explained - assume that the funds available for Italy, which are assumed to be 120 billion for loans and 87 for transfers, are used fully and without inefficiencies, with a uniform distribution of expenditure over the five-year period 2021 -2025 ".

"The actual benefits that Italy will be able to obtain from the use of the funds of the new instrument will depend on the country's ability to propose interventions capable of helping to strengthen the potential for economic growth, consistent with the objectives and requirements of the program, and to implement them quickly and without waste "continues Balassone.



Essential balance of accounts


"The National Plan for recovery and resilience must also be based on the essential objective of achieving a substantial, progressive and continuous balance of public accounts".

This is what the Head of the Economic Structure Service of the Bank of Italy said.

"To this - he continued - the relaunching of growth, which will only be possible if the resources are used productively, can contribute above all; otherwise the country's problems would not be alleviated by the increased indebtedness, but would be increased".



Extension stop layoffs can slow down reorganization


The temporal extension of the layoff block could slow down the corporate reorganization and reallocation of workers between companies and sectors in the medium term, penalizing workers expelled from the labor market in recent months, mostly young " Balassone stressed again in a passage. "In this regard, it was noted that if the 'August' decree allows dismissals in the event of cessation of activity, it does not allow them in the event of the suppression of individual production units.

It should also be noted that the prohibition on dismissal is an exception in the European context: Germany and France have not introduced such restrictions.

In Spain, DLR 9/2020 provided that the health crisis cannot be counted among the reasons that legitimize economic dismissal;

however, the other possible reasons remain valid (for example, company restructuring, job suppression).

Finally, dismissal remains possible in any case in Spain, since, according to the prevailing interpretation, its possible illegitimacy determines the payment of compensation to the company but not its nullity ".



Interventions on Public Administration, innovation and assets


"It is possible to identify at least three macro areas in which interventions appear equally urgent: Public administration, innovation, safeguarding and enhancement of our natural and historical-artistic heritage" explains Bankitalia. And, he highlighted, "the effects of an renewal of public administration, traditional and innovative infrastructures of the school can be particularly relevant in the South. In the southern regions, first of all, the environment in which businesses operate must be improved, primarily with reference to the protection of legality ".


The resources of the new European instrument can help to start the recovery of the delays accumulated by the Italian economy in the last thirty years.

Thus F. Balassone today at the audition on #NextGenerationEU and #RecoveryFund at @Montecitorio https://t.co/CFth7WTU7S pic.twitter.com/8JB4j6KQM9

- Bank of Italy (@bancaditalia) September 7, 2020