GDP, Franco: cautious optimism but continue with support for economies
Nadef, Franco: "In 3 years, margins to lighten the tax burden"
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21 October 2021 Faced with an increase in energy prices that "can slow the consolidation of the recovery" the government "has already intervened twice", but the executive's action "has not prevented the growth" of prices. "It is a topic that remains open and we will have to identify other interventions".
This was highlighted in his speech on World Savings Day by the Minister of the Economy, Daniele Franco.
The maneuver supports the social
"With the budget law we are again increasing investments, especially in the years after the NRP, with an additional 70 billion by 2026". The budget law, Franco said, aims to "support the economy and society in the phase of exit from the pandemic and strengthen the growth rate in the medium term", reducing the tax burden, strengthening health care, investments, research. and support for social policies.
Public accounts: preparing for rate hikes
"We need to be ready for interest rate hikes: we need to go back to having primary surpluses, as was the case until 2019".
"The trend in public finances this year is more favorable than expected, both for growth and for other factors". "By the end of the decade we plan to bring the debt-to-GDP ratio back to where it was before the pandemic crisis: it is an important point because it will free up resources for other uses, because it will ease the pressure on the spread and increase the autonomy of our economic policy".
Intense economic
recovery Italy is experiencing "an intense recovery of the economy" and activities. The "trend in consumption in recent quarters is positive" and a trend in investments "very accentuated", with fixed and gross investments that "should increase by more than 15%".
The "labor market conditions are also improving but there is still a long way to go to reabsorb the consequences of the pandemic crisis". Exports also help the economy of the country, on which "we are among the economies that have the greatest dynamism: according to the IMF we will come only after Japan and in 2022 we will be behind only Spain, with a dynamic that is reflected in the balance of balance of payments".
Government and parliament work together
Italy has a "very large tax wedge" on which "action must be taken". "It is important that the government and Parliament continue to work together" for the revision of the tax authorities. "In the budget law we have increased the resources for cutting the tax levy to eight billion, the modalities will be defined in the coming weeks ".
Acting on employment and productivity
Italy has emerged "from a quarter of a century of anemic growth" and now, "in order to intervene on our potential growth, it is necessary to have three areas of intervention: employment, productivity and endowment of capital".
"We have come out of a quarter of a century of anemic growth and income stagnation that has made it more difficult to manage public finances and which has prompted many young people to leave the country".
Cautious optimism
There may be a "cautious optimism" on the solidity of the Italian banking system. "International regulatory reforms and public support for the economy have made it possible to limit the impact of the crisis on banks' profitability and have allowed the banking system to perform an essential function of supporting corporate liquidity". At the same time, Franco warned, "due caution is needed and it is important that banks' income projections adequately incorporate the potential deterioration in assets". Finally, Franco concluded, "it is important that banks accompany companies one by one as they exit the path of pandemic support".
G20: placing major global issues at the center of the agenda
The Italian presidency of the G20 represented "an opportunity to put major global issues at the center of our agenda".
Italy, which is among the countries with a greater international projection, "cannot ignore external scenarios: we need a clear analysis of the international context in which we operate".
With the presidency of the G20 "we have contributed to an agreement on the taxation of multinationals of very large scale, we have contributed to strongly strengthen aid to the most vulnerable countries, we have been strongly committed to the management of the current health emergency and future pandemics, and we have emphasized the importance of the fight against climate change which, once the pandemic is overcome, will be the most important and difficult global challenge ".