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Giuliano Cazzola: unemployment and wedge, how much the Renzi plan costs for work

Giuliano Cazzola, former parliamentarian and expert on labor and social security policies: "If there is an extension of the unemployment benefit to collaborators and VAT numbers, the cost will be 7-8 billion" - Yes to the extension, but only against contribution requirements paid in previous years – The double-digit cut of the wedge would cost 30 billion.

Giuliano Cazzola: unemployment and wedge, how much the Renzi plan costs for work

“Renzi has given the numbers to the lottery. Many generic indications, few facts, at least according to what was heard in his speech to the Senate ”. It is difficult for Giuliano Cazzola, a former parliamentarian and expert on labor and social security policies, to comment on Prime Minister Matteo Renzi's proposal on extending the unemployment allowance.

At Palazzo Madama, the premier had assured that he wanted to start, by March, with the parliamentary discussion of the Employment Plan which "by modifying a universal instrument in support of those who lose their jobs, will intervene through new regulatory rules, even profoundly innovative" .

What does it mean?

"The sentence said by Renzi is too generic - he continues, after a long pause - By guessing, what you can do is look for the proposals that have been made in recent years and the initiatives that have been attempted."

The wording is generic, but could materialize as already proposed by Renzi when he was still mayor of Florence, within his Jobs Act: a universal check for those who become unemployed, with the possible exclusion of young people looking for their first job. It's possible?

“In reality, the solution proposed by Renzi falls within a very wide range. The lowest point is represented by the extension of the ASPI also to the categories excluded up to now. The highest one is made up of minimum income, whether it is citizenship or social inclusion.”

Translated into euros, how much would it cost?

“If we want to talk about numbers, this range goes from a few billion to a few tens of billions.”

Let's accept the proposal contained in the Jobs Act. How much does it cost?

“If the proposed solution is Aspi, the former unemployment benefit, extended to collaborators and VAT numbers, at least 7-8 billion would be needed. But if it were extended to all the unemployed we would be at much higher levels.”

In your opinion, what is the most feasible solution?

“The most reasonable option, for me, is the extension of the indemnity to collaborators and VAT numbers, however in the face of some contribution requirements. In other words, we give unemployment benefit to them too, but only if they have worked in previous years. And they have paid the necessary contributions to pay their allowance.”

So the state shouldn't put money into it?

The extension of unemployment benefits should be paid by workers and businesses, not by the state. In this case, in this case, the collaborators could pay it with the contributions paid over the years. The solution cannot be to always rely on the state, which would end up having to pay higher charges."

Renzi also intervened on labor costs, proposing a "double-digit cut in the wedge". How much could this operation cost?

“It is difficult to judge the plan proposed by the prime minister, also with regard to the issue of labor costs. The premier spoke of a double-digit cut. If the speech is made in absolute terms, the operation has already been proposed by the former Prime Minister Enrico Letta, when he wanted to allocate 14 of the 30 billion euros of the Impegno Italia plan to reduce labor costs. If, on the other hand, Renzi spoke in percentage terms, the figure takes off to 30 billion euros.”

Where do you get the money?

“Hard to say. They are lottery numbers. Also with regard to the release of public administration debts and the role of Cassa depositi e prestiti in all this. I mean, one goes to the CDP with one's credit, certifies it and repays it. But the Cassa must be repaid by the State. So we would have to find another 50 billion euros. And to do so there is the risk of creating more debt. And this is not a good policy. That's not how resources are found. Not to mention that unfortunate and thankfully reversed exit of the Bot Tax. Something that would have affected the desire to subscribe to government bonds."

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