Infrastructures, simplifications, public administration, justice, taxation and business recapitalization. The Assonime proposals on how to use are concentrated in these sectors the 208 billion that Italy will collect from the Recovery Fund in the next years. They were presented in the Senate on October XNUMX by Innocenzo Cipolletta and Stefano Micossi, president and general manager of the Association of Italian Joint-Stock Companies.
THE METHOD TO FOLLOW TO SET UP THE PLAN
First of all, according to Assonime, a reflection on the method to be followed in setting up the plan is needed: "Time is tight for the identification and launch of the projects to be financed - reads in the report – 70% of the resources obtained will have to be committed by 2022; the remaining 30% must be committed by 2023”. This is why we need to "focus on initiatives that have a greater leverage effect on the country's sustainable growth", i.e. the areas "in which private investments are unable to achieve public policy objectives". All without forgetting the reforms: "It is important that, alongside the identification of the projects to be financed, the Plan also contains indications on how to deal with the permanent critical issues highlighted by the recommendations sent to Italy in the context of the European semester", continues the Association.
THE PRIORITIES TO BE ADDRESSED
Based on indications from Brussels, there are five priority areas on which to intervene.
- Digital. "We need to quickly remedy the lack of connectivity that does not allow citizens and businesses to participate in the possibilities offered by digital transformation in some areas of the country", writes Assonime.
- Environmental sustainability. According to the Association, European funds could be used for interventions such as "the eco-sustainable renovation of public buildings, incentives for the renovation of private buildings and, where necessary, public support for the modernization of energy consumption accounting and monitoring systems ”.
- Transports. “The priorities in this sector – continues the report – are the strengthening of intermodality between transport systems, the safety of bridges and viaducts and the strengthening of high-speed rail transport”.
- E-government. In this context, Assonime believes that European resources provide "the opportunity to finally create an integrated and well-functioning system of fully interoperable public administration databases (for example, real estate cadastre and infrastructure databases)."
- Business support. "Public intervention - continues the Association - must focus on sectors in which the market alone is unable to achieve public policy objectives and must be structured in such a way as to exert a leverage effect on private investments".
THE OPERATIONAL PROPOSALS
- Infrastructure. Assonime underlines that "to use the new European funds effectively" it is necessary "to remove the factors that block the construction of infrastructures". In particular, the Association suggests improving the functioning of the Interministerial Committee for Economic Planning, reducing the fragmentation of the contracting authorities, making dispute management more efficient and easing the discipline of public-private partnerships.
- Simplifications. In the administrative sphere, the Association speaks of overcoming the stalemate that arises when "an administration assumes a different position from the prevailing one of the other administrations and the final decision is left to the Council of Ministers or the Regional Council", for example by introducing a time limit beyond which, in the absence of a decision by the body of last instance, "the decision taken by the services conference is automatically confirmed". In addition, "other objectives are the proper functioning of one-stop shops for businesses and citizens and the review of individual administrative procedures, eliminating duplication and unjustified complications".
- Public Administration. As for the PA, Assonime suggests moving from ex ante to ex post controls and making the decision to limit liability actions for tax damage permanent to cases of willful misconduct only.
- Justice. In addition to "reforming the executive process to make it faster and more effective", the Association deems it essential "to increase the resources for the supports of the magistrates' offices and accelerate the digitization processes, also allowing the hearings to be held online".
- Revenue authorities. In the tax area, Assonime's proposals concern various taxes:
- VAT. The Association talks about increasing some reduced rates and at the same time “reallocating goods and services between the different rates”.
- Property taxation. In addition to underlining the need for a reform of the cadastre, Assonime proposes to "restore taxation on all residential properties" and to "lighten taxes on property transfers".
- Personal income tax. “The reorganization of personal income tax inevitably involves a reshaping of the tax rate curve and a drastic cut in tax expenditures”.
- IRES. As for taxation on corporate income, the Association suggests "intervening on tax deductions and credits, limiting them to clear and predetermined regulatory objectives".
- Recapitalization of companies. Finally, Assonime highlights the need to "make available to non-financial companies with good fundamentals, but fragile financial situations, tools that allow for new capital injections". For example, "one could think of a Fund, to be set up with contributions from a public institution (Cassa Depositi e Prestiti), open to the possibility of co-investment by financial institutions and other institutional subjects (Foundations, Pension Funds, insurance), also through the creation of a Fund of Funds that supports the private capital market". Finally, "it is necessary to overcome the obstacles which in Italy, even for the largest companies, have historically limited direct recourse to the capital market - concludes the report - and which have contributed to an almost total standstill in the pandemic phase".
