It takes Salvini's chutzpah to state that the Governor of the Bank of Italy also supports his flat tax, when Visco in his usual annual report to the Bank's shareholders' meeting, he said exactly the opposite. And that is that there is no need to intervene with partial measures that modify only one aspect of the Italian tax system, but that we will have to put our hands on one comprehensive reform that it clears the jungle of taxes and concessions formed over the last forty years, aims at favoring income from work and seriously combats tax evasion which, in addition to being unfair to those who pay, involves serious distortions in the functioning of the economy.
Visco was calm this year, almost didactic, as if he had to explain to negligent pupils how homework should be done correctly. There were no heated tones or controversies. Some open problems, such as the Commission of Inquiry on Banks, were not even named. Sober satisfaction was expressed for the closure of the matter concerning the renewal of some directorate members, without mentioning the moments of strong tension experienced for a few months.
But the content of Visco's statements was in total opposition to what the two parties in government are saying on how to get the Italian economy back in motion and on the ease with which they blame Europe for shortcomings, which are above all ours.
The causes of our disease cannot be cured by increasing public deficit spending. The Governor shows that this would lead to a "restrictive expansion” as the increase in interest rates and the collapse of business and household confidence would more than compensate for the expansive impulses deriving from the expansion of public spending. What others have called a “recessive generosity”, i.e. the increase in subsidies and gifts, would only aggravate our problems by inflating the debt without having effects on the GDP, and therefore effectively increasing the real constraint, that of the debt which for years has prevented the country from keeping up with the rest of Europe.
The reasons for the Italian stagnation for which we are perhaps the only country in the West to still be below the level of incomes of 2008 (for those per capita as much as 7%), are to be found in a series of both public and private shortcomings: insufficient quality of public services, inadequate infrastructure, low degree of competition, tax evasion and corruption. On the private side, Visco has not spared criticism of companies, which in general have responded late to the needs of technological innovation due to a structure of companies that are too small and too closely linked to the family of origin which are struggling to open up to the financial market and managerial management.
Then there are strong shortcomings in the training of young people and furthermore those we manage to train do not remain in our country, because we fail to offer jobs that live up to their expectations. More we are an aging society that within a few years will lose several million workers. Consequently we will have to face the issue of immigration without hysteria, but above all that of labor productivity and the increase in the employment rate, especially for women which is much lower here than elsewhere.
But the chapter where Visco most clearly contrasts with the vulgate of sovereignists and populists is the one concerning Europe. The Governor doesn't just list the merits of Europe, but clearly recognizes that Economic and Monetary Union is an unfinished construction. But instead of dismantling it, Italy should and could make a significant contribution to continuing the path of unity and correcting the distortions that remain. And Visco goes into detail to say what our government should do to pass credible proposals that are in the national interest both for the completion of the banking and financial union and for the launch of a fiscal union capable of contributing to economic stabilization of all areas. Other than talk about the exit from the euro or the need to have its own currency to do what we like! Words are actions, said the Governor quoting Elia Canetti, to warn our talkative rulers to avoid bluster that has negative effects on finance and the real economy. It is no coincidence that the spread has exceeded 290 points, an alarming level which, if it were to persist, would crush any hope of growth.
Staying in Europe is the only way we have to respond to global challenges. We must therefore stay there, but above all feel good about it, and carry forward those proposals that not only serve to do a bit of television demagoguery but which respond to the real national interest. To do this, we need to look a little further than those who seek consensus day by day. We need to go back to being "farsighted", said Visco, and it is hoped that the "people" will soon get tired of following the pipers, and will once again appreciate those who will be able to propose a healthy development path and effective protection from the turbulent events of the modern world.
