Even the painful story of the announcement closure of the Embraco plant near Turin – where several hundred jobs are at risk – it has become an occasion for coarse exchanges between the parties during the electoral campaign. For the Lega and the Brothers of Italy, the move of the plant is proven proof of the dangers of participating in the single currency and in the internal market. The Democratic Party finds no other answer than to call the company that is relocating rogue and runs to Brussels to ask for help - either by allowing us to use state aid to stop the transfer to Slovakia, or by sanctioning Slovakia for state aid, which moreover it is not known if there are. Great columnists are tearing their hair out about multinationals without a country and about Europe that must find an answer or will be lost for a change.
The truth, however, is that companies relocate because Italy is a place where it is increasingly difficult to work; labor cost is only one variable among many, perhaps not even the most important, in creating this disadvantage. The confusing laws and their unpredictable application by judges and administrations, the difficulty of collecting debts, the environmental hostility to the company weigh much more. These disadvantages would be surmountable if productivity were stellar; but too often it remains very low due to lack of management and technology. One thing is certain: environmental disadvantages and low productivity cannot be resolved by shouting against Europe, asking Europe to let go of state aid, or calling companies that close down rogues.
SOURCE: more.net
