Sunday, December 4

This is the ‘Melonomics’, the proposals of the economic program that Giorgia Meloni has for Italy

Some experts have calculated that putting into practice the program that Giorgia Meloni had promised in the electoral campaign would cost some 180,000 million euros. It is an unrealizable promise, like the vast majority of those made by political leaders in electoral campaigns. But the leader of the Brothers of Italy has been moderating and adjusting her promises, as the electoral campaign progressed and she saw that her victory was closer to her, because she was aware that when leading the Government reality prevails . And in Italy the reality is that its public accounts, with 2.7 trillion in debt (150 percent of GDP), do not allow much joy or expense. Related News standard No Meloni vetoes Salvini and La Liga wants to kick him out after his failure Ángel Gómez Fuentes He has become a very uncomfortable figure in the path of the right-wing leader towards Palacio Chigi, after the electoral failure of his party and the pretensions of his secretary Hence the moderation and certain ambiguity with which Meloni has moved in recent days. It is a very calculated ambiguity, which some even praise, because it shows her ability to adapt to the situation. This can contribute, without a doubt, to giving an image of it that is very different from the one that has been offered in the past. In light of this change in the leader of the right-wing bloc, with reversal of some unrealizable promises, the experts analyze her new political line, with the key points of her economic program. Some, like for example the economic daily ‘Il Sole 24 Ore’, you define as the ‘Melonomics’. To put a good part of this program into practice, Meloni wants to place a technician at the head of the Ministry of Economy, to give guarantees to Brussels and the international markets. She must demonstrate that she is moving away from populism with concrete measures. For example, employers from northern Italy ask for foreign labor, because they cannot find it in Italy. It will be difficult for the Brothers of Italy, which has had 30 percent of the vote in the northeast of the country, until now a stronghold of the League, which it has duplicated at the polls, to turn a deaf ear to the Veneto businessmen, for example, who They request that the hiring of immigrants be expanded to help companies in difficulties. These are the so-called ‘Melonomics’ of the Melon i program: Stability of public accounts Meloni has completely stopped the impossible promises made by some members of the right-wing bloc. For example, he completely refrains from promising an increase in minimum pensions to 1,000 euros per month, including “for housewives and grandmothers”, as Silvio Berlusconi did. Instead of a single rate of 15 percent for everyone in personal income tax −as his allies did, in particular Matteo Salvini−, Meloni explains that it is better to start applying that 15 percent tax for the self-employed, but only on the increase in income from the previous year. Fairer taxation Brothers of Italy proposes “to reduce the tax burden of companies and families through a reform in the name of a fair distribution of wealth”: personal income tax reform with progressive introduction of the family quotient; extension of the single rate tax to 15 percent for the self-employed with a turnover of up to 100,000 euros; progressive elimination of the IRAP (Regional Tax on Productive Activities). Put an end to the short-sighted bonus policy, to replace it with stable and lasting measures. Abolish the so-called citizenship income (unemployment subsidy) Meloni considers that the so-called citizenship income should be abolished, a subsidy from which 1.6 million people benefit. It has been the electoral flag of the 5 Star Movement, which approved it while in government, and has given it millions of votes. But it is a subsidy highly criticized by several parties, because it discourages the search for work by young people in conditions of work. Meloni wants to replace it to introduce a new tool that protects people with no income, effectively fragile and unable to work or difficult to employ: the disabled, people over 60, families with dependent minors. For those who are able to work, there will be training courses and strengthening of active labor policies. Minimum and social pensions will be raised. The Meloni plan is to build a model of universal social safety nets for all workers: establish an unemployment benefit for the self-employed that follows the same rules as the compensation provided for dependent work. Promote companies from Italy and combat those that go to tax havens The objective is to encourage companies that had settled abroad to return to Italy and discourage relocations; combat with determination unfair competition and evasive practices of transfer of registered office in European tax havens; strengthen the tools to stimulate and promote the channeling of private savings towards the financing of the real economy, particularly in small and medium-sized enterprises. Tax relief for those who hire workers. Structural cut to the labor tax Strategic reduction of taxes on labor, for the benefit of workers and companies. And the rationalization of the dozens of different types of hiring incentives currently in existence. The numerous regulations will concentrate on a few, but more effective measures. Relaunch of structural investments In recent decades, Italy has not made significant investments in infrastructure. Now Meloni is proposing to relaunch investments in road, rail, port and airport infrastructures. Italy wants to become competitive with other European countries through the modernization of the infrastructure network and the construction of major works, the strengthening of the high-speed network to connect the entire national territory from the north to Sicily and from the Adriatic to the Tyrrhenian Sea, as well as the improvement and development of digital infrastructures. With a clause to safeguard the national interest, also from an economic point of view, for public infrastructure concessions, such as highways and airports. And the protection of strategic companies through the correct use of the so-called «golden share». Promotion of the ‘Made in Italy’ brand The promotion of the ‘made in Italy’ brand also goes through the strengthening of the ICE Agency, the government body created to promote the presence of ‘made in Italy’ in foreign markets. It is about supporting the initiatives and services offered to companies for their promotion abroad and their internationalization. The objective is to help Italian companies to find new opportunities at an international level and face the challenges of the global market. Specific update of the European Reconstruction Fund Italy has been allocated 200,000 million euros, in loans and non-refundable money, for five years. The fund represents a “great opportunity for the modernization of Italy and its infrastructures and for the economic restart of the nation.” But Meloni proposes a “proper update” with respect to the project approved by the Draghi government, in light of the crisis resulting from the war in Ukraine and the increase in the prices of raw materials. The objective is “to allocate more resources to energy supply and security, to free Italy and Europe from dependence on Russian gas and to protect the population and the productive fabric from rationing and price increases.” Relaunching the apprenticeship and internship contract To promote the training and integration of young people in the world of work, the aim is to relaunch, with adequate guarantees, the instruments of the apprenticeship and internship contract; strengthen the system of postgraduate courses for job placement; promote training in certain disciplines (Science, Technology, Engineering and Mathematics), in order to facilitate the entry of young people into the world of work and fill the current shortage of qualified people in these subjects.

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