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Public administration reform, spending review and other recovery reforms

The recession is over but to consolidate the recovery it is essential to go ahead with the reforms, especially with that of the Public Administration, which, however, is proceeding slowly and which is instead essential also for the take-off of the Jobs Act – The resources for the Agency are too scarce of active policies: what a difference with Germany.

Public administration reform, spending review and other recovery reforms

The recession would appear to be, indeed, over. In the first three months of the year, growth was 0,3 percent. An encouraging result, which arrives after ten quarters with a minus sign, but still unsatisfactory if we consider the very favorable international situation (low oil, lowest rates and weak euro) and the comparison with other countries. Spain, just to give an example, grew by 0,9 percent compared to the previous quarter and by 2,7 percent compared to the same period in 2014 (Italy by 0,1 percent).

To consolidate the recovery it is essential to go ahead with the reforms: labor market, school, justice, and above all public administration. The latter, between amendments, parliamentary passages and doubts expressed by the Court of Auditors, proceeds slowly. Yet, without a clear definition of the perimeter of action of the state and the resources available - objectives that are currently lacking - it is difficult for the other reforms to be able to fully exert their effects. Starting with the occupation.

Let's take the case of the National Agency for Active Policies, an instrument desired by the government to facilitate the search for work. The proper functioning of this body is linked to the amount of resources invested, the division of tasks between public and private and the competence of the personnel. The decree, approved for now only in the first reading, provides for a workforce of around 400 employees. In the future, the employees of the employment centers of the Regions (about 6) and of the Provinces (8 of the 20 to be relocated) should converge.

It is legitimate to ask whether the resources put in place are adequate, both in quantitative and qualitative terms, also in the light of the flop of the "Youth Guarantee" program - 1,5 billion euro of funding from Europe - which up to now has made it possible to find an internship or training for only 8 percent of the approximately 450 young people registered. In Germany, for example, the Federal Employment Agency employs – with some success given that unemployment is at 7 percent - over 120 operators and ten times the resources of Italy. This was possible thanks to the redefinition of the tasks of the public sector and the review of spending which allowed for savings of over 4 percentage points in the five-year period 2002-2007, thus freeing up resources to be allocated to active policies.

Jobs are not done by decree but certainly a public administration reform that clearly defines who does what and with what resources is essential to create the conditions for making the Jobs Act work.

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