The Minister of Economy, Giancarlo Giorgetti, does not mince words in defining the Super bonus: it has become a real "monster" that is undermining the foundations of public finance. During a speech in the Chamber - where the Def obtained approval with 197 votes in favour, 126 against and 3 abstentions - Giorgetti even compared the 100% bonus to a psychedelic drug, an "LSD" according to the accounts of the State, underlining the need to end laxity, subsidies and debt accumulation.
The increase in the deficit to 7,4% in 2023, the highest in the European Union, raised concerns among rating agencies. Fitch, which will update its rating on Italian creditworthiness (currently BBB with a stable outlook) on May 3, warns that a debt/GDP ratio of 110% could bring the debt to unsustainable levels, while the government hopes to limit it to 139,6 %. Also Bankitalia he sent an alarm signal to Palazzo Chigi with a memorandum filed with the Senate Finance Committee: if the latest tightening doesn't work, it will have to be eliminated before 2025. Giorgetti also made his majority colleagues understand that he is not willing to accept compromises on the issue. He proposes a drastic intervention, such as extending the recovery period of tax credits linked to the Superbonus from 4 to 10 years, together with new restrictive measures, including restrictions on the assignment of credits and on work not started. It is clear that Giorgetti is determined to defend the financial stability of the country, even at the cost of putting his own position at stake.
Giorgetti on the Stability Pact: "It's a compromise, no to LSD-model growth"
The situation becomes even more critical with the return of European Union rules on public finance. Giorgetti himself commented on the green light for the new Stability Pact EU approved two days ago. “It is certainly a compromise, it is not the proposal that the undersigned had brought forward at the European level”, but it still represents “a step forward compared to the budget rules that would have come back into force in 2025”. The minister also underlined that the country's growth model should be based on sacrifice, investment and work, rather than the "LSD model" of laxity, debt and subsidies.
Meanwhile, in the Senate, Forza Italia is trying to broaden the scope of the decree that regulates invoice discounts and the transfer of credit. Requests include derogations for properties owned by non-profit organizations and in earthquake-affected areas, as well as a selective extension for condominiums. But very little will remain of the 355 amendments presented to the Superbonus decree in the Senate. Giorgetti is aware that these requests could further complicate the already precarious financial situation, leading to a increase in the deficit.
Compared to the opposition's controversies over the failure to finance other priorities, the minister underlined that the Superbonus, if on the one hand it can stimulate economic growth, on the other creates dilemmas on how to finance other items. In a sarcastic tone, the minister noted that those who decided on this policy had in fact chosen to divert funds from other investments, thus fueling the debt. The government, pressed by priorities in the health, educational, cultural and social fields, had to postpone the bonus on the thirteenth. But further complicating the situation are the new European Union rules, which push the government to review public finance objectives. While waiting for the EU guidelines in June, Giorgetti is well aware that the next few years will be extremely difficult.
