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Draghi: "12 billion tax cuts, 30 billion maneuver"

The Premier announces 4 billion more tax cuts and a tightening on basic income any price”

Draghi: "12 billion tax cuts, 30 billion maneuver"

A council of ministers that lasted over 3 hours gave the green light to the 2022 budget law, the first one signed by the Draghi government. Unanimously approved a text of 185 articles containing measures for a total of 30 billion euros, 6,6 billion more than foreseen in the Budgetary Planning Document, but above all with 4 billion more tax cuts than hypothesized circulated in recent days. "We are very satisfied with this provision", said the Prime Minister, also explaining the reasons: "It is an expansive budget law, which accompanies the recovery and is fully consistent with the Economic and Financial Document, the Update Note of the Def and the Pnrr”.

The premier opened the press conference by expressing closeness to the Sicilian citizens affected by the floods of recent days and to the families of the three victims who lost their lives due to bad weather. Then the focus on the maneuver, a law that "acts both on demand but also a lot on supply: let's cut taxes, stimulate investments", said the prime minister, explaining that "from the problem of public debt, from that of social benefits inadequate and other just modifications of our social system that we have not been able to make in the past years we come out through growth”. Draghi recalled that this year's GDP will grow by more than 6%, but he also underlined that "this growth is no longer a goal in itself, but more and more attention is being paid to the quality of this growth, its sustainability and the its inclusiveness,” said the head of government.

12 BILLION TAX CUT

Draghi announced that "as regards taxes, we are making available around 12 billion to reduce the tax burden", 4 billion more than the draft circulated today. "Eight billion - he continued - go to a targeted intervention to reduce taxes on companies, on individuals, on the tax wedge and there are various hypotheses for the use of these 8 billion that we will define with Parliament". 

“We are allocating 40 billion over the three-year period 2022-2024 to tax reductions, of which 24 to the wedge and the remainder to tax incentives, to families and businesses for real estate assets and digitalisation,” the Premier said.

Answering journalists' questions, Draghi underlined that “the government has not yet decided on the weights of the various measures, there will be a discussion with the social partners and an interlocution with Parliament. This is the first concrete act of tax reduction but the delegated decrees have not yet been written and therefore the dialogue with Parliament must be taken into account ”, he explained. 

PENSIONS AND SOCIAL SHOCK ABSORBERS

On pensions, "the goal is a full return to the contribution system, with a transition to Quota 102 (38 years of contributions and 64 years of age)", said the Prime Minister, explaining that the government has put its hand to the Option woman, to the Ape sociale "expanding the range of subjects who can use it". 

Draghi then sent out a message to the unions, on a war footing for the abolition of Quota 100: "The government is open to discussions with the social partners" and with Parliament "because the goal - he reiterated - is the full return to the contributory contribution which is the box in which many things can be fixed", such as "recovering those who have left and are undeclared at work". Answering questions from journalists, the Premier said he "didn't expect" a strike against the pension reform. "But the decision is in the hands of the unions."

The budget law “provides for a reorganization of social spending. The reform of social safety nets is profound and implements the principle of universalism”, said the head of government.

BASIC INCOME

On basic income, Draghi reiterated that he shared the basic principle of the provision, explaining that the Maneuver provides for much more precise and "ex ante" controls, that is, before the money is disbursed. The control system aims to ensure that those who receive the basic income have an incentive to return to the world of work. “The current system hasn't worked,” Draghi said, “but it needs to be fixed. It must be maintained, without abuse, and must not hinder the functioning of the labor market, which instead has happened". The Maneuver also provides for the loss of the subsidy after the second refusal of a job offer, while for those who find a job the check undergoes a progressive cut. 

ALL MANEUVER MEASUREMENTS

The details of the Maneuver were explained by the Minister of Economy, Daniele Franco, who underlined the one billion euro increase in the resources allocated to basic income, the 2 billion earmarked for the containment of energy costs and the cut of Irpef and Irap. “The composition of the tax cut is equal to 12 billion in the first year, 40 in the three-year period. A first component is dedicated to the intervention on Irpef and Irap (8 billion a year), then there are interventions on other taxes: sugar tax, plastic tax, intervention on collections, VAT on sanitary towels and landlord income. Two billion are dedicated to measures to reduce VAT and fixed energy charges. The last component are the incentives for the real estate sector and for making business investments”.

“In 2022 we will intervene for 4 billion on health spending, half of this sum will be destined for vaccines and anti-Covid treatments, the other half for strengthening the resources of the national health system”, explained the number one of the MEF. 

Maneuver refinances high speed. 1,5 billion euros will go to the Cig and pensions, while 3 billion will be used to finance the guarantee fund for small and medium-sized enterprises. 

As expected, the 110% superbonus on condominiums is extended to 2023 with limitations for villas, while from 2024 the rate will drop to 75%. The façade bonus will drop from 2022% to 90% in 60, but "those who have already started work at a higher rate will keep that rate", reassured Minister Franco. In total, 37 billion have been allocated, of which 15 for the superbonus. Incentives for young people to purchase homes have also been extended and a rental fund set up.

“It is a maneuver with a strong social sign, of contrast to inequalities. There is a strong investment in social policies”, said Labor Minister Andrea Orlando, recalling the financing of the social fund, that of all the tools that already existed for crisis areas. “And then there is a new fact: the fund for gender equality, 52 million euros to reduce the gap in terms of the difference in wages between men and women”, he added. 

FRANCO ON MPS: EXTENSION REQUESTED FROM THE EU

The Economy Minister answered a question about the future of Monte dei Paschi and the failure of the negotiations between the Treasury and Unicredit, announcing that discussions are already underway with the EU for an extension of the terms established for the privatization of the Tuscan bank. “With Unicredit,” Franco said, “there was a gap on the capital increase and on the value of a business unit. We are not willing to sell it at any price. We will explore further possibilities in the coming months.”

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