Growth, growth, growth and recovery in harmony with Europe: this is the program on which Monti obtains the confidence of the Senate for his government. On a general level, in addition to the pension reform that he presented to the Senate, the program is divided into two parts: emergency measures and reforms. On the first point he said that it will probably be necessary to strengthen the interventions already envisaged by the maneuvers of the previous government.
In concrete terms, the review of all public spending and on the tax front will be strengthened, in addition to intensifying the fight against tax evasion, the Government is thinking on the one hand of reducing taxes on work and on businesses (taxation of social security contributions) and on the other to tighten taxation on consumption (+ VAT) and on real estate with the restoration of the ICI on first homes. On a more general level, the Government plans to reform pensions and the labor market (more company contracts) and, on an institutional level, to proceed towards the abolition of the Provinces and to reduce the costs of politics. Massive liberalizations are also on the way, especially for the professions. Even if the PDL has already anticipated its no both to the return to ICI on first homes and to the liberalization of professions.
"The program that I am presenting to you today - said the new Prime Minister Mario Monti in front of the Senate - consists of two parts: on the one hand, the measures to deal with the emergency and restore public finances, on the other, those to expand the opportunities for businesses, young people and women in a framework of rediscovered social and territorial cohesion". After the Senate's yes, tomorrow it will be the turn of the Chamber, where the session will begin at 9,45. The Montecitorio vote will arrive around 15 pm.
Here are the points touched by the Premier in his keynote speech:
BALANCE OF THE BUDGET. "The constitutional bill to introduce the requirement of a balanced budget for public administrations can help maintain the balanced budget planned for 2013. But in order for it to be effective, the responsibilities of the various levels of government must be clarified".
TAX AND WELCOME REFORM. "Interventions aimed at bridging any gap with respect to the objectives in the budget maneuver will have to be identified".
CUTTING THE COSTS OF POLITICS. “Those who represent the institutions at all levels will have to act soberly, with attention to cost containment. I will launch a spending review on the Single Fund for the Presidency of the Council. I intend to strengthen this tool for the identification of specific times and responsibilities”.
PENSIONS. “Our system has wide disparities in treatment between workers and generations with unwarranted areas of privilege.”
FIGHT AGAINST ESCAPE. “Not only to increase revenue, but also to reduce tax rates, even with the monitoring of accumulated wealth. Evasion continues to be a relevant phenomenon. We need to lower the threshold for the use of cash, speed up the sharing of information between public administrations”.
HERE. "We intend to re-examine the weight of the levy on real estate wealth, which is particularly low in Italy by international comparison, which represents an anomaly".
PROVINCES. "The reorganization of the Provinces can be arranged with ordinary law, the reform of the Constitution will be able to complete the process" of cancellation.
DISPOSAL. “The first list will be complete by April 30. Subsequently, a punctual timetable will be defined for the subsequent steps of the disposal plan".
TAX. “The tax burden in Italy is particularly strong and its composition can be modified to favor growth through a reduction of the burden on work and production activities and its shifting towards consumption and property. This would support growth without affecting the public budget”.
INFRASTRUCTURE. “We are evaluating the opportunity to exploit private capital for their construction. We need to implement the project financing tool”.
WORK. “With the consent of the social partners we must implement measures to move away from the dual market where some are too protected and disadvantaged. Reforms are needed to make the system more equitable and facilitate the recovery of productivity. The new order will be applied to new employment relationships, while existing employment relationships will not be modified. Greater mobility between companies and sectors is essential to bridge the gap between guarantees and disadvantages”.
WELFARE. “We need to support unemployed people and facilitate their reintegration. There is a need for a systematic reform of social safety nets to guarantee workers”.
WOMEN. “We need to strengthen the fight against undeclared work, ensuring the entry of women into working but also civil and social life in the country, while promoting the birth rate at the same time. We will also study the opportunity to create a privileged taxation for women”.
YOUNG. “This is one of the action priorities of this government: what restricts opportunities for young people is a disadvantage for the country. We must remove the constraints that do not allow young people to exploit their potential. We need to enhance individual skills and eliminate all forms of co-optation. And for this reason mobility is our best ally”.
MICROECONOMIC POLICIES. Italy must “enhance human capital by aiming at increasing the education of the workforce, with interventions on schools and on the most backward areas. Furthermore, investments in infrastructure are relevant factors: for this purpose we have enhanced the development policies of the real economy in the Government structure by attributing the responsibilities of economic development and infrastructure to a single ministry, in order to underline that equal attention must be paid attributed to financial discipline and growth”.
"It is also necessary to remove or reduce burdens and risks of administrative procedures, stimulate competition, intervene on minimum tariffs, give new tools to the Competition and Market Authority in the event of distorting actions, increase the competitiveness of public services, reduce the of civil justice". Without forgetting "the action to combat organized crime and the mafias".
“The task is extremely difficult and the margins are all the more reduced after years of conflicts – concluded Monti -. With shared basic choices and objectives, we will have the possibility of redeeming the country and rebuilding trust in its institutions".
Read full text of Prime Minister Mario Monti's speech
