The simplification decree has been postponed until next week. The latest measures should make life easier for Italian companies supplying the public administration. Indeed, the aim of the latest missing reform package is to reduce the complication of administrative procedures. According to the latest rumors it should be established that the State will pay the trade payables, accrued up to 31 December 2011, within 60 days to companies that present the due request. A table will be opened at a later stage on the proposal to eradicate debts through short-term bots, put forward a few days ago by the Minister of Economic Development Corrado Passera.
Sanctions do not appear to be envisaged for administrations that do not respect these limits, but the rumors this morning hinted at the hypothesis of a possible penalty of up to 8% interest and there was even talk of the liability of individual managers
According to the estimates of the Bank of Italy the total value of the tax debts would amount to 62,5 billion euros, while for Confindustria and the Italian Banking Association (Abi) the figure would rise at least 80 billion. Over 40 billion euros, about half of the total, are claimed by companies against companies Asl and more than 70% of non-punctual administrations are located in the center-south.
But for companies facing a serious liquidity crisis, which have employees and suppliers to pay, Is it really convenient to receive government bonds? Sure, better than nothing, but they'll have to find a way to sell them and a lot will depend on the contracts they sign with the banks.
Furthermore, it is not certain that this solution will help Italy move up the rankings of the European Payment Index (Epi), the index that measures the time it takes European public administrations to pay suppliers. As stated in the study by the multinational consultancy Intrum Justitita, in 2011 the average time for the Italian public administration to repay suppliers and businesses was 180 days, while France pays in 56 days and in loyal Germany only 34 days of waiting is enough. Our country is in last place, slower even than Greece.
