ITALY MAJOR REFORMS - DECRETO DEL FARE I punti capitali che il Presidente del Consiglio Enrico Letta ha presentato alla City The path towards growth: - Deficit below 3% and primary surplus of 2.5%. - No major macroeconomic imbalances and a dynamic economy: no bubbles in the housing market, low household debt, sound banking system, very strong exports, solid manufacturing, widespread entrepreneurship. - Exit from the European Union Excessive Deficit Procedure and therefore increased flexibility within the preventive arm of EU Fiscal Compact. Italy’s Major Structural Reforms: - Politics and institutions; - Fiscal Discipline and Tax Relief; - Labour Market; - Civil Justice; - Infrastructures; - Cutting Red-tape. Politics and Institutions: - Reform of public funding to political parties, other transparency initiatives and measures against the “cost of politics” - 40 MPs to design a new institutional framework: Reform the two-chamber parliamentary system. Reform the electoral law. Revise Title V of the Constitution on the division of labour between Regions and Central government. Payment of public sector arrears: - The Government decided to speed up payments of commercial debts owed by public administration. - Sizeable payments – around €20bn – expected in 2013 with an important boosy to the economy. - Decision on payment of outstanding debts has been anticipated to the Fall with new payment right thereafter. Tax relief: - By the fall, a revised and comprehensive fiscal system on local taxes will be introduced. - VAT increase due in July postponed to October. - Any revision will be consistent with current fiscal target. Fighting youth unemployment: - €650 reduction of tax wedge for each new contract for young people (18-29 years old) - Frontloading of the EU “Youth Guarantee” Programme to 2013: up to €1.5bn new resources available for active labour policies for Youth. - Increase flexibility at entry, promote traineeship and apprenticeship. Reforming civil justice: - Reduction of pending civil proceedings by 1.1 million cases. - Mandatory mediation to decrease the number new court proceedings. - All civil judgments involving a foreign company to be centralized in the Milan, Naples and Rome Courts. Infrastructures: - Tax credit to encourage public-private partnerships for construction projects above €200m. - Speed up use of Structural Funds (Commissioner ad acta and specific task forces). - €2bn over 2013-17 to finance infrastructure project for motorways, railways, underground lines and school buildings. - Speed up major infrastructures for Expo 2015. - Support for touristic port activities. Cutting red tapes: - Joint fiscal responsibility for VAT between contractor and subcontractor abolished. - Integrated procedure for strategic plants (merging of authorizations, permits, clearances and other administrative acts) - Public administration to pay a fine for the delay in concluding administrative proceedings. - Digital agenda: digitalize public administration and SMEs. Next steps: - Simplification of the fiscal framework (delega fiscale) - Spending review. - Promote foreign investments with the launch of Destinazione Italia (Destination Italy), a major plan to promote and attract foreign investments. - Major asset privatizations to reduce substantially the stock of the debt. Tutti questi punti del FARE sono stati presentati a Londra dal Presidente del Consiglio On. Enrico Letta con l’intento di attrarre investimenti in Italia.
Posted on: Fri, 26 Jul 2013 13:44:29 +0000
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