The class struggle fiscal second Eugenio Scalfari
recession and economic crisis aw are therefore implore word of Bernanke and Trichet, that the two most powerful central bankers of the West. The rates of GDP and industrial production (excluding automobile) are revised upwards both in the U.S. than in Euroland. In short, the worst would pass even if they are the same as Bernanke and Trichet to lay hands on, yes, the worst is over, they say, but still we walk on terra incognita, the social crisis is still ahead of us, but the recovery is is not homogeneous, is also increased the difference in intent between the governments especially in Europe and each country goes its own way, so you can not relax our guard.
After all, just a fortnight ago and in public statements by Bernanke and Trichet had said exactly the opposite. Predicted slowdown in production, revise downwards the rates of GDP on both sides of the Atlantic, feared stagnation of investment and reducing consumption especially in sensitive sectors of construction, alarmed at the debt positions of many countries and the effects they might have on financial and monetary markets. The least we can say that these conflicting arguments of the two top central bankers is that their view of reality is somewhat confused and the arc of their divisions is very fluctuating. I do not know if you realize this, but their behavior is becoming grotesque, the barometer of an instrument which seems to have gone mad from which perhaps it is wiser to ignore.
Those who have no doubts whatsoever is made by the Minister of Economy. Interviewed by Republic declares without hesitation that we are out of the crisis. Have no problems, but the crisis is. The problems are to Tremonti for economic policy coordination among European governments. Europe is still an archipelago, but it's time to become a continental bloc led by a single brain, namely the European Council of Ministers (Ecofin) to the Commission Brussels is the executive body. The Ecofin will meet tomorrow and will launch this epochal transformation: the rise of European economic brain which will be responsible for protecting the stability already in place and start on a continental scale competitiveness policy, which will enable Europe to compete successfully with both America is with the emerging giants of Asia.
goes without saying that the canon of competitiveness lies mainly in the end of the class struggle between capital and labor into and to be carried out company by company, contract by contract. The final surprise in the interview of the Minister Massimo Giannini is the opening to all parties and all social forces Members, however, recalled that after the Berlusconi government will last at least until 2013 and probably more. Let's recap: Europe is now marching towards the accelerated economic and political unity, an Italy that, in spite of its huge public debt, and sound travels in a perfect stability of the locomotive pulling the German model for all, a tax reform in our country which focuses on families, work, business and move the collection from people to things. In the meantime, we must abolish all prohibitions and all the rules except those explicitly reconfirmed. So according to him, and so Tremonti Europe. However, many gaps remain in this landscape painting of pink many questions and even some Marchiano error to be corrected.
Getting started: Europe lives in a complex world and especially in a Western context where the U.S. play a decisive match. Apart from the roller coaster on which to continue to travel both Bernanke and Trichet, the data certainly is the enormous debt the U.S. government, the fiscal deficit continues to swell in the lake of liquidity that the Fed will have to increase to support the recovery and in external debt and equally large concern. Washington for now pulling ahead on this road in anticipation of the midterm elections next November, but soon will have to make choices. Rigor and return of the debt ratio acceptable decrease in the external deficit, weak dollar to discourage imports, or inflation. Inflation conscious, deliberate inflation and operated to reduce the weight of debt and devalue the claims.
These choices, whatever they will not save Europe which, in turn, will face American decisions in appropriate ways. Who will decide on European responses? The Ecofin answer Tremonti. Germany, responds to reality. Germany will decide, giving some compensation to France in terms of management positions in the Union. But if this were not enough it is very unlikely that the archipelago can be transformed into the desired European continental block. In reality Three Peak scheme still seems written on the water, waiting for any unknowns that do not depend from Europe let alone Italy.
on what is happening in our country the diagnosis of the Minister of Economy is to say the least part. There is a jobs crisis that involves mainly the young and insecure. There is a crisis in the South. There is a stagnation in consumption and investment. And there are no resources available. He spoke with clear responsibility Tommaso Padoa Schioppa 24 Ore in an interview last Friday, in which among other things, praised the rigor of Tremonti. The interviewer asked: "In Italy there are those who raised the tax cuts. is a recipe that possible? ". Answer: "When you make proposals to reduce the deficit rather than increase it, I'd like you to explain how to keep accounts in order. Otherwise the answer is "no." "It seems to feel Tremonti" says the interviewer. Padoa-Schioppa says, "Tremonti was aware from the outset that Italy had no room for maneuver. And this is a good thing. "
Former Economy Minister Prodi sees a continuity with the policy of his successor, based on a fact: Italy has no leeway. But it is an unchangeable fact of life? In a country that still ranks among the top ten richest countries in the world? What is the answer and there is a plausible answer? It is a workable recipe? Before addressing this issue, however, should still provide a picture of what is to happen in the coming weeks, even in the coming days. There are 200 000 temporary workers at the school by decision of the minister Gelmini will be left on his ass. There are 500 000 workers who will face a very complicated to solve employment problems. Finally, waiting for the appointment of the holder of the Ministry of Development after four months of emptiness, the timing of the tables of corporate crises that affect the fate of 14 000 workers are crowded. Among these Eutelia the case, the Ideal-Standard, the Fiat plant in Termini Imerese, the case of Oerlikon, Indesit, Burani, Merloni and many altri.Dal September 7 to 23 of these disputes will be decided in one way or another. This is the picture. Everything in order, minister Tremonti? Fruitful cooperation between labor and capital under the aegis of the eternal Berlusconi government?
The resources are there, you just have to want to find them. The first way forward in the fight against tax evasion that largely coincides with the market flooded. These first results when the tax was in the hands of Vincenzo Visco, now continues to give: in the current year we are in the order of nine billion recovery, not cheap but in this size is like a drop in the ocean because the recovery of evasion existing ago from new and additional counterface escape, so the stock has been subtracted from the tax authorities is more or less unchanged.
The second way forward is to recover resources in the fight against waste. Here there would be a lot of pulp, are unproductive uses a fair amount of public spending cuts and arranged in the Finance Acts 2009 and 2010 were those grounds. The method adopted, however, was quite unhappy. The cuts to the ministries were arranged in a linear fashion, so have been penalized in the same proportion is unproductive expenditure is indeed necessary expenses that should have been increased. As for the cuts in staff, the choice of squeezing public employees was justified by the fact that past performance salary increases were higher than those obtained by private employees. Grounds very difficult to prove and still hotly contested. All of these measures has not recovered much in terms of waste but lowering the overall level of spending has still further compressed domestic demand with visible effects on consumption. Other depressant effects come from cutting transfers to the municipalities and regions, whose impact on local taxes and service quality.
Finally, there is a third way to go to recover resources and transfer the tax burden from the wealthy and disadvantaged groups to bands from income to assets. In a country where inequalities are dramatically increased in recent decades, such an operation should be done but the political caste pretend it's impractical. We say that is not popular because it strikes at all times with the most powerful corporations, the clientele and a band of unscrupulous voters valuable to the current majority. The truth is that tax policy in place has connotations typically classist, it strikes at the bottom instead of the top and actually turned progressive taxation in a real regressive, with lots of greetings to the constitutional principle. Yet a change in the fiscal sense of a return to the principle of progressivity contribute greatly to the revival demand and growth. It would also effectively cut waste and increase competitiveness. But is not written in the tables of this government, so long as there are no substantial changes in the political class-finance and taxation will remain unchanged, with all due respect to those who argue that class struggle no longer exists.
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