{"id":67373,"date":"2019-07-30T00:00:00","date_gmt":"2019-07-30T00:00:00","guid":{"rendered":"https:\/\/www.fondazionepirelli.org\/uncategorized\/lallarme-di-bonomi-assolombarda-sullanno-perduto-per-la-crescita-e-le-proposte-al-governo-taglio-al-cuneo-fiscale-e-investimenti-digitali\/"},"modified":"2019-09-10T11:03:00","modified_gmt":"2019-09-10T11:03:00","slug":"bonomi-of-assolombarda-sounds-a-warning-about-a-lost-year-of-growth-with-proposals-for-the-government-reduce-the-tax-wedge-and-invest-in-a-digital-future","status":"publish","type":"post","link":"https:\/\/www.fondazionepirelli.org\/en\/corporate-culture\/blog\/bonomi-of-assolombarda-sounds-a-warning-about-a-lost-year-of-growth-with-proposals-for-the-government-reduce-the-tax-wedge-and-invest-in-a-digital-future\/","title":{"rendered":"Bonomi of Assolombarda sounds a warning about a \u201clost year\u201d of growth with proposals for the government: reduce the tax wedge and invest in a digital future"},"content":{"rendered":"

Italy is in a\u00a0\u201czero growth\u201d<\/strong>\u00a0swamp. The autumn looks to be laden with economic and social worries. A\u00a0\u201cnear-sighted\u201d and bickering government<\/strong>\u00a0has, so far, produced nothing more than recessive reforms, neglecting development and the construction of a better future for the country.\u00a0Carlo Bonomi<\/strong>\u00a0doesn\u2019t pull his punches. The\u00a0chairman of Assolombarda<\/strong>(the main local branch of Confindustria with 6,000 registered businesses in Milan, Lodi, Monza and Brianza, an area abounding in small and medium-sized manufacturing companies) published a lengthy, detailed opinion piece on \u201cIl Foglio\u201d addressing the economic crisis and the government\u2019s inconclusive policies, opening with a razor-sharp title: \u201cEnough is enough\u201d. And further to the point: \u201cA year of growth, lost\u201d.<\/p>\n

There\u2019s growing malaise in the world of business<\/strong>, including in regions (Lombardy and Veneto) where the majority of businessmen voted Lega, counting on the party\u2019s traditional sensitivity to the manufacturing sector and its needs. But a slew of\u00a0provisions and announcements, from \u201cdecreto dignit\u00e0\u201d to citizenship income, from \u201cquota cento\u201d for pensions to tax amnesties and the proposed \u201cminimum wage\u201d have brought about the realisation that social spending and the burden on businesses will increase, without in any way helping to fuel growth<\/strong>. The standstill on incentives and tax benefits for\u00a0\u201cIndustry 4.0\u201d<\/strong>\u00a0only makes matters worse and frustrates the expectations of businesses that had already taken steps to keep up with the challenges of the\u00a0digital economy<\/strong>. Bonomi is a worthy representative of such numerous concerns.<\/p>\n

Milan is, after all, the best indicator of economic trends. It is a key European metropolis that knows how to weigh concerns and expectations, embodying a widespread desire for sustainable development. After all,\u00a0Milan knows full well that its own growth can\u2019t help but correlate closely with that of the rest of the Country, with Rome the capital and with the South<\/strong>. In that sense, Milan is Italy. And the city\u2019s entrepreneurs are social actors who share a deep understanding not so much of the specific needs of their sector but of the nation\u2019s greater interests within its European setting.<\/p>\n

Like any skilled entrepreneur,<\/strong>\u00a0Bonomi knows his sums and has an appreciation for numbers, knowledge and know-how. His critique starts from the economic situation, with\u00a0growth at 0.1% of GDP for 2019<\/strong>\u00a0(a figure confirmed by the most recent report by Banca d\u2019Italia), which leaves us trailing as Europe grows by 1.4%. Germany, with an export economy like ours, is also reeling from the tension in international trade, especially after the clash between USA and China, but is somewhat better off with growth at 0.5%. \u201cStagnant\u201d, says the latest study of the third trimester by Centro Studi Confindustria, with a\u00a00.6% decline in industrial production<\/strong>.<\/p>\n

More data: sales and exports of machine tools have collapsed; employment is limited; and youth unemployment is at record-setting levels in the South. But there\u2019s also a\u00a0lack of attention to strategic investments in the digital economy<\/strong>: a mere \u20ac85 of public spending per citizen, compared to \u20ac186 in France, \u20ac207 in Germany and \u20ac323 in the UK. The development of the digital economy and the digitalisation of Public Administration are key factors on which the growth of the Country depends. Unfortunately, the government is \u201cseriously near-sighted\u201d, looking out for \u201celectoral interests in the short term\u201d without considering \u201ca serious and sustainable approach to encourage growth\u201d.<\/p>\n

It\u2019s not a matter of partisan politics or prejudice. Bonomi points out that\u00a0entrepreneurs<\/strong>\u00a0don\u2019t cheer for a given party. They\u00a0\u201ccheer for Italy\u201d<\/strong>. He highlights the positive events of the past months, such as the convergence of the public and private sector and the joint efforts of the (politically diverse) administrations of Milan, Lombardy and Veneto in the successful bid for Milan and Cortina to host the 2026 Winter Olympics. And he reminds us that manufacturers must \u201cstay the course for development\u201d.<\/p>\n

There\u2019s appreciation for the work done by Premier Conte and Minister for the Economy Tria to avoid conflict with Europe (it would have been \u201ca form of self-harm\u201d). And for Conte\u2019s decision to play an active role in the election of Ursula von der Leyen to the head of the European Commission (which the Lega objected to under Matteo Salvini).<\/p>\n

As he turns to foreign politics Bonomi, speaking on behalf of entrepreneurs, is consistently severe in his criticism: there\u2019s\u00a0Italy\u2019s lonely signature, the only EU founding member and the only member of the G7, in the agreement with China<\/strong>; there\u2019s\u00a0friendship with Russia<\/strong>, despite \u201cPutin\u2019s practically scornful consideration of liberal and democratic values and of market values, which are the foundation of the EU\u201d; and there\u2019s the\u00a0risk of isolating Italy from Europe<\/strong>\u00a0and becoming \u201ca sort of Serbia of the Mediterranean\u201d. Our businesses are deeply embedded in Europe. They are an integral part of a value chain whose roots are set in Europe.\u00a0Multilateral trade policies serve the country\u2019s best interests<\/strong>, as opposed to bilateral shows of force, which leave Italy weak and alone with everything to lose.<\/p>\n

Simply put, Bonomi\u2019s lengthy article in \u201cIl Foglio\u201d is a list of things that aren\u2019t working. But it\u2019s an equally long list of political decisions that need to be made. The upcoming\u00a0Budget Law<\/strong>\u00a0to begin with: stop the deficit from growing any more than it did in 2019 (which means excluding measures wanted by Salvini that would exceed this limit), put an end to new flat rates for the IRPEF, avoid \u201cfanciful last-minute solutions, like obtaining \u20ac18 billion through divestiture\u201d and privatisation \u2013 when \u201cAlitalia is being nationalised once again\u201d.<\/p>\n

The priority: \u201cA fresh start for potential GDP, both for supply and demand\u201d. The means: invest the entire, unspent cost of \u201cquota 100\u201d, citizenship income and the \u20ac80 bonus (formerly known as the Renzi bonus) in \u201cthe permanent, structural and universal elimination of the tax wedge\u201d. In other words, eliminate \u201cthe number one anomaly that weighs down both hiring and company budgets\u201d.<\/p>\n

The basic idea is to put growth back on track<\/strong>. Reinstate all the incentives for \u201cIndustry 4.0\u201d, initiate a special, multi-year plan for the digital economy and create the necessary infrastructure for development (the very projects opposed by the Cinque Stelle). In other words, be serious about politics.<\/p>\n

A matter of merit. And of method: \u201cAvoid the contorted series of party parades masquerading as meetings with employer\u2019s organisations and unions\u201d. The reference to Deputy Prime Minister and Minister of the Interior Salvini, who called everyone to the Viminale, is clear. The appeal, straightforward: no demagoguery to the detriment of social partners. But total\u00a0willingness to dialogue<\/strong>: \u201cThere\u2019s a President of the Council, he should summon us\u2026\u201d. \u201cSeriousness\u201d, indeed.\u00a0Not unscrupulous propaganda<\/strong>.<\/p>\n

Unions are called to share the fight\u00a0\u201cagainst the minimum wage\u201d<\/strong>, a useless measure that reduces the income of most workers, who are already properly covered by contracts, and creates higher costs for businesses.\u00a0It would be better to insist on contracts<\/strong>, which now affect not just salaries but welfare, training, quality of work and quality of life.<\/p>\n

There\u2019s a final caution, a call for dignity and responsibility: \u201cPolitical threats will not keep us from speaking for Italy, which deserves better\u201d.<\/p>\n

It deserves politicians and leaders who are capable of listening and learning, who demonstrate\u00a0foresight and responsibility<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Italy is in a\u00a0\u201czero growth\u201d\u00a0swamp. The autumn looks to be laden with economic and social worries. A\u00a0\u201cnear-sighted\u201d and bickering government\u00a0has, so far, produced nothing more than recessive reforms, neglecting development and the construction of a better future for the country.\u00a0Carlo Bonomi\u00a0doesn\u2019t pull his punches. The\u00a0chairman of Assolombarda(the main local branch of Confindustria with 6,000 registered […]<\/p>\n","protected":false},"author":1,"featured_media":67374,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55,56],"tags":[],"class_list":["post-67373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-corporate-culture"],"acf":[],"yoast_head":"\nBonomi of Assolombarda sounds a warning about a \u201clost year\u201d of growth with proposals for the government: reduce the tax wedge and invest in a digital future - Fondazione Pirelli<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fondazionepirelli.org\/en\/corporate-culture\/blog\/bonomi-of-assolombarda-sounds-a-warning-about-a-lost-year-of-growth-with-proposals-for-the-government-reduce-the-tax-wedge-and-invest-in-a-digital-future\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bonomi of Assolombarda sounds a warning about a \u201clost year\u201d of growth with proposals for the government: reduce the tax wedge and invest in a digital future - Fondazione Pirelli\" \/>\n<meta property=\"og:description\" content=\"Italy is in a\u00a0\u201czero growth\u201d\u00a0swamp. 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