Today is the great day of the budget package, which arrived in the Council of Ministers at 16 pm. The definitive weight of the provision is 45,8 billion euros, divided as follows: 1,8 billion for the current year, 5,5 for the next year, 19,5 billion for 2013 and 19 billion for 2014. This is the money that should allow us to reach a balanced budget in 2014. There are many doubts about the final text, even though in an interview with the Financial Times the owner of the Economy, Giulio Tremonti, assured that the latest version has not been watered down compared to the original. The superminister has no doubts even on the numbers front: "Italy is absolutely in line" with the plans. The deficit should therefore be reduced to 3,9% this year and 2,7% next year.
Despite Tremonti's firmness, the provision has undergone changes, additions and filings up to the last seconds of the Cesarini area. Now the ball passes to the Chamber, where the text will arrive between 25 and 30 July. Let us now summarize the main measures envisaged by the maneuver in the form of a diagram, barring further last-minute changes:
THE HEALTH TICKET RETURNS
The stop to the payment of the health ticket will only be valid until the end of the year. From 2012, barring further extensions, a tax of 10 euros will be paid again for specialist visits and 25 euros for first aid. Furthermore, still in the health sector, a series of economies will affect the sector through the standard cost mechanism. The level of financing to which the State will contribute in 2013 will undergo an increase of 0,5% compared to the previous year. A new increase, this time of 1,4%, will take place in 2014.
FREEZE ON RECRUITMENT IN THE PUBLIC ADMINISTRATION
The hiring freeze in the public administration is extended by one year, but the stop will not start immediately (it will be postponed to a subsequent regulation) and will not concern the Police and the Fire Brigade. Recruitments have also been frozen in tax agencies, in non-economic public bodies and in some other bodies such as opera houses, the Italian Space Agency, Coni, Cnel and Enac. It is estimated that around 1,5 billion euros will be saved thanks to this measure.
FREEZING OF STATE CONTRACTS
Extended by one year (until 2014) the freezing of the contractual increases for the state.
PUBLIC EMPLOYEES: TAX VISITS FROM THE FIRST DAY
There is a tightening on sick leave for civil servants. The tax inspection can be requested "from the first day of absence when the absence occurs in the days before or after the non-working days".
WOMEN IN RETIREMENT AT 65, BUT THE INCREASE IS SOFT
The retirement age for women will be gradually increased. From January 2020, the age requirement will rise from 60 years to 60 years and one month, increasing by another two months from 2021, three months from 2022, four months from 2023, five months from 2024 and a further six months "starting from the first January 2025 and for each subsequent year until 2031”. The 65-year requirement will kick in January 2032, when there will be a further three-month increase.
STOP THE AUTOMATIC REVALUATION OF THE HIGHEST PENSIONS
A tightening on higher pensions is coming with a stop to automatic revaluation. The measure will apply for the two-year period 2012-2013 to pensions exceeding five times the minimum INPS treatment (about 30.500 euros gross per year), while for those between three (18.300 euros per year) and five times the minimum, the automatic revaluation will be 45%.
ADJUSTMENT OF PENSIONS TO LIFE EXPECTANCY
The coupling of personal data and contribution requirements for access to the pension of men and women to the average life expectancy calculated by Istat will start from 2014, instead of from 2015. EMPLOYMENT BONUS “Facilitated taxation of workers' income” has been confirmed for 2012, linked “to increases in productivity, quality, profitability, innovation, organizational efficiency”.
SCHOOL: FEWER SUPPORT TEACHERS, COMBINED SECRETARIATS AND TEMPORARY HEADS
The objective – in line with Law 133 – is to prevent the number of teaching posts and administrative, technical or auxiliary posts from increasing again from 2012 onwards. Responsibilities regarding support for disabled pupils will be extended to all staff. At the same time, checks on diagnoses that indicate the need for didactic support for pupils with learning problems will be increased. At an administrative level, the secretariats of the nursery, elementary and middle schools will be merged, while the smaller institutes will be entrusted to temporary principals.
CUTS TO LOCAL AUTHORITIES
Regions and local authorities will see the government impose fewer transfers of 9,6 billion between 2013 and 2014. The ordinary regions will contribute 800 million in 2013 and 1,6 billion in 2014, the special regions with 1 billion in 2013 and 2 billion in 2014. The lower transfers to the municipalities are worth 3 billion in the two-year period: 1 billion in 2013 and 2 billion in 2014. The provinces will contribute 400 million in 2013 and 800 million in 2014.
NEW TAXES ON FINANCIAL TRANSACTIONS AND TRADING BANKS
A tax of 0,15% will be imposed on financial transactions carried out in Italy, while a tax of 35% will be imposed on trading by banks.
FROM THE NEXT LEGISLATURE COSTS OF POLITICS AT EUROPEAN LEVEL
From the next legislature, the costs of the policy will be leveled at the European average. “We want to activate a commission chaired by the president of Istat with the best experts and take the average of the countries of the Euro area as a reference,” explained Tremonti. The cuts will not only be at the national level, but also provincial and municipal. These also include election day, "which provides for the unification of national and administrative elections", added the minister, specifying that the measure will not concern referendums, "which according to the Constitution must be autonomous".
TAX ON SUVS AND POWERFUL CARS
The law provides for an annual surcharge on the car tax, which will affect vehicles with power exceeding 125 kw (about 170 horsepower).
CLOSE ON AUTOBLU AND ABSENTEEISM
The squeeze on blue cars is coming: "Further savings, rationalization and qualification measures for central administration expenditure" will come "also through the digitization and simplification of procedures, the reduction in the use of service cars, the fight against absenteeism" .
5% SICALE FORFAIT FOR YOUNG COMPANIES UNDER THE AGE OF 35
There is a 5% tax flat rate for businesses run by young people under 35. According to Minister Tremonti it is the "cheapest measure in Europe". It will have a duration of five years and will also concern people excluded from the workplace.
FROM NEXT YEAR 5 PER THOUSAND ALSO TO CULTURE
From 2012 it will be possible to allocate five per thousand of Irpef to cultural heritage.
TAX: INVESTIGATIONS ALSO ON INSURANCE
The Tax Authorities broaden their range of action: in addition to banks and post offices, starting today, to combat tax evasion, they will also be able to request information from insurance companies that carry out financial and credit activities.
AMENDMENT FOR TAX DISPUTES UNDER 20 THOUSAND EUROS
An amnesty is envisaged for tax disputes pending as at 1 May 2011 for a value not exceeding 20 thousand euros in which the Revenue Agency is a party to the dispute. The solution can come with the payment of 150 euros for disputes up to two thousand euros. For higher amounts, the payment must be equal to 10% of the value of the dispute. The settlement request must be submitted by 31 March 2012. The tax disputes that can be settled are suspended until 30 June 2012.
STOP THE ENCOURAGED COLLECTION OF MILK QUOTAS
The maneuver provides that milk quotas are safe from forced collection by Equitalia.
SPENDING REVIEW
The introduction of the logic of standard costs to the expenses of the ministries has been confirmed to overcome the mechanism of linear cuts in the future. The Treasury aims to start a cycle of "spending reviews" to "define the standard needs of the spending programs of the central state administrations", as stated in the draft of the manoeuvre. In particular, "for the peripheral administrations of the State, specific methodologies are proposed to quantify the relative needs, also for the purpose of allocating resources within their overall endowment".
JUSTICE: COMPENSATION FOR OVERLONG PROCESSES
Reproposed some rules for compensation following unreasonably long trials, both criminal and civil (two years in first instance, two years in appeal and two years in Cassation, "as well as another year for each subsequent level of judgment in the case of referral order"). The criminal trial is considered to have begun from the date of the request for indictment.
FINES FOR THOSE WHO FULFILL THE INTERNAL STABILITY PACT
Some provisions contained in the maneuver provide for a further tightening on recruitment in local authorities and heavy fines for administrators who evade the rules of the internal stability pact. This is one of the knots still to be resolved.
PUBLIC REAL ESTATE FUNDS
Public real estate funds arrive to enhance the local heritage. The Ministry of the Economy will set up an asset management company with a share capital of two million for the establishment of one or more investment funds. Foundations and Cassa Depositi e Prestiti can also participate. At the same time, Patrimonio Spa will be dissolved and placed in liquidation.
NEW: THE ROAD INFRASTRUCTURE AGENCY
It will be established on 2012 January XNUMX at the Ministry of Infrastructure and Transport and will be based in Rome. The Agency will be able to make use of the collaboration of Anas.
FUNDS FOR INFRASTRUCTURE
For the development of infrastructures, 930 million will be allocated in 2012 and one billion a year from 2013 to 2016.
700 MILLION FOR INTERNATIONAL MISSIONS
For the international missions in which Italy is involved, 700 million euros will be allocated between 31 July and XNUMX December.
AID FOR 980 THOUSAND FARMS
The interventions in favor of corporate debt envisaged by the maneuver concern 980 farms in crisis or in debt. Of these, 700 are in the South. The intervention mechanism should favor the settlement of the tax and social security debts of companies in difficulty.
PRIVATIZATION OF THE RED CROSS
Also from January 2012, XNUMX, the Italian Red Cross will become a private body. Non-military personnel are at risk of being displaced. As for fixed-term contracts, they will be terminated within the year.
FUEL PLANTS MAY SELL FOOD AND CIGARETTES
Fuel distribution facilities will be able to sell food, beverages, newspapers, magazines and cigarettes. Among the measures also the obligation, within a year, to open self-service pumps with advance payment in all plants, which must also be operational during the hours in which the operator is present.
INPS PROCESSES EXTINCTION
Some processes in which INPS is a party and whose value does not exceed 500 euros will be extinguished. These are the proceedings pending in the first instance of judgment as at 31 December 2010. The economic claim will be recognized to the appellant.
EXTENSION TO CONTROLLING SHAREHOLDINGS OF THE ACCOUNTING REVALUATION OF BRANDS AND GOODWILL
The accounting revaluation of brands and goodwill envisaged by the anti-crisis decree of November 2008 is extended to controlling shareholdings. The measure had allowed many banks to increase capital ratios which had fallen due to the financial crisis.
CUTS AT THE BOTTOM READ
Cuts of over 3,5 billion are foreseen between 2012 and 2020 for the Fund to support the real economy, the so-called Fondo Letta. From 2020 onwards, the Fund will be reduced by 240 million per year.
THE CURIOUS ANTI-CAREER RULE
The maneuver puts a stop to marriages of interest between cleaners and pensioners. From 2012 January 10, the survivor's pension will be reduced by 70% for marriages celebrated when one of the spouses was over 20 and the age difference between husband and wife exceeded XNUMX years.
LIBERALIZATION OF TIMETABLES FOR SHOPS IN TOURIST AREAS
Also known as the "free-traders" rule, it concerns the liberalization of opening hours and days for shops in tourist areas and cities of art.
INTERVENTIONS IN THE GAMES SECTOR
Some news in the gaming sector: penalties for illegal betting will be tightened (stricter rules especially against underage gaming); the State Monopolies will define the innovations to be approved for the Lotto game; after the manoeuvre, a tender for amusement machines (newslots and videolottery) will be launched; help will come from the gaming sector for the revived "social card", the purchase card to support the most disadvantaged families.
LONG BAND
A national interest plan on new generation broadband will be carried out, prepared by the Ministry of Economic Development with the help of businesses.
UNIVERSAL SERVICE
Established universal service obligations for telephone companies that own NGN networks (or "next generation networks") in order to accelerate the creation of the new generation fiber network.
FORCED RELEASE OF RADIO FREQUENCIES TO AUCTION THEM
With the transition to digital terrestrial, frequencies will be freed. In the event of non-return by the local television operators who currently have them in use (many would like to be compensated), the forced release of the radio spectrum will be possible. These frequencies will then be auctioned off between mobile phone companies. The Government estimates it will obtain at least 2,4 billion from the operation.
REGISTRATION OF WORKING PENSIONARY PEOPLE WITH PRIVATIZED PENSION FUNDS
All pensioners who receive income from professional activity will have to join the privatized pension funds. Retired workers will also be obliged to pay contributions at a minimum rate of no less than 50% of the ordinary rate envisaged by other members of the same entities.
NEW POWERS AT COVIP, THE ASSESSMENT CORE OF SOCIAL SECURITY EXPENDITURE HAS BEEN SUPPRESSED
Covip will be given new powers to control the financial investments of the privatized pension funds. On the other hand, the Social Security Expenditure Evaluation Unit has been abolished. The activities of this body, which include the updating of the transformation coefficients used for the transformation of the contribution amount into pensions, will be guaranteed in concert by structures of the Ministry of Economy and Labour, while the resources already allocated for the functioning of the Nucleus will be turned over to Covip.
