Piercarlo Padoan has no doubts: "We are emerging from an infernal trap that froze growth for twenty years, even before the crisis". The Economy Minister spoke at the "Italy is back" conference, organized by the American Chamber of Commerce. Just yesterday in Porta a Porta the minister had returned to the tax issue: "The tax burden will continue to fall in the coming years even without specific interventions" and will settle at 40% "I don't know if within the legislature", in any case "in few years". According to the latest Istat data, the tax burden – i.e. the ratio of taxes plus social security contributions to GDP – reached 43,5% in 2015.
The head of the treasury explained that IRES will drop by a few points in 2017: "I said a few points because it's a different way of explaining that there are margins" to be exploited for other tax cuts. “If we can anticipate the cut in personal income tax, we will do it – assured Padoan – and we'll see by how many points. In any case, points that will feel in the pockets ".
As for growth, "I think it will strengthen – added the minister – because we still have to see the full impact of structural reforms, including constitutional reform".
Public debt, on the other hand, in 2016 will drop "by less than one percentage point, thanks to the proceeds from privatizations but less than expected, since one important thing is missing: inflation", Padoan underlined.
Finally, as regards the basic income proposed by the 5 Star Movement, the minister is in agreement with the governor of Bank of Italy Ignazio Visco: because it "costs a lot of money" and presents two problems: "On the one hand, financial sustainability, which is very problematic, on the other, the criterion by which access is gained, perhaps for some it is needed, for others it is not. You can't think in the abstract."
