The Italian Government is running out of excuses. The blame-everybody-else-but-ourselves litany, successfully adopted by the Premier Mr Berlusconi, no longer works. Voters now recognize the gravity of the situation and are deserting the centre-right coalition in droves.
The dramatically escalating economic crisis has confirmed long standing problems of the Italian economy; the consolidated debt, which is running at 120% of GDP, the stagnant economy, with growth close to zero, the growing imbalances between the North and the South of Italy, the new wealth, the increasing poverty and the ever-growing tax evasion. The EU has asked Italy to start addressing the key economic problems or face disaster. The repercussions of which will affect all of the EU and the global economy.
The political and social consequences that Greece is confronting are a stark reminder of the peril ahead. Italy will fail if the Government, after denying for months the gravity of the situation, continues to underestimate the long-term consequences of this crisis and does not adopt urgent corrective actions.This crisis has also shown that credibility, political credentials and an ability to govern are fundamental components of a country's position in a world scale economy. It is not only a matter of trusting the Government issued bonds. In fact the Italian manufacturing sector, its export capacity and the quality of its industrial base, are undisputed and still today, together with Italy's saving capacity, provide a positive outlook and it is what makes Italy diverse from Greece, Spain or Portugal.
The Italian Government is not credible today. A credible leadership is clear on reforms and policies but also places national interest before the self-interest of its leaders. The Partito Democratico has played a responsible role in the crisis, opposing without obstructing the budget measures. A series of economic measures made up of drastic cuts equally distributed to all portfolios, without a necessary spending review, affecting services and therefore every-day life of citizens. The budget did not contain real reforms, including the pension system that needs to be aligned to other EU countries, and did not pay any attention to growth, through direct incentives or personal tax reductions.
The Government has now announced a series of measures that should look at growth and development but in Parliament both the PDL (Berlusconi's party) and the Northern League are still trying to push through a phone tapping legislation that is designed to silence the press. The latest scandal involving Mr Berlusconi is all about phone conservations; strange characters talk with the Premier about politics, favours and sex and raise the possibility of the Italian Premier being blackmailed. Questions without answers; these are the questionable antics of a majority that saved a member of the Chamber of Deputies, Marco Milanese, from jail and confirmed the centre-right view that MP's are above the law. If Milanese was an ordinary citizen he would have been jailed.
These are the questionable antics of a majority that prevents a no-confidence motion, presented by the opposition, in order to save Mr Romano, Minister for Agriculture, from simply stepping down during a court case for mafia.
Again the Premier is placing self-interest before national interest and the interests of the EU. The EU Central Bank has already warned Italy to start a new era of reforms immediately, in order to boost confidence. It did not have in mind a change in the phone tapping legislation.
The opposition has argued for alternative proposals:
- The introduction of a tax on assets, rather than continue to increase the goods and services tax, currently at 21%,
- Incentives to specific sectors of the economy and higher tax for speculative and financial sectors, accompanied by strong measures to fight tax evasion and,
- a new moral agenda to rebuild the credibility of the political system – a moral question that remains open for the entire political system.
A new leadership with credibility can only be achieved with a change of Government, this may come as a consequence of an early election or a transition Government headed by a national political figure or simply by a centre-right that finds the strength to free itself from Berlusconi's legacy and elects a new leader.We need a political system with the ability to demonstrate to voters, allies, EU countries and the world that Italy is still capable to express a Government which reflects the hopes, dreams and aspirations of its people.
Marco Fedi, MP
Member of the Italian Parliament
Chamber of Deputies
Rome
The dramatically escalating economic crisis has confirmed long standing problems of the Italian economy; the consolidated debt, which is running at 120% of GDP, the stagnant economy, with growth close to zero, the growing imbalances between the North and the South of Italy, the new wealth, the increasing poverty and the ever-growing tax evasion. The EU has asked Italy to start addressing the key economic problems or face disaster. The repercussions of which will affect all of the EU and the global economy.
The political and social consequences that Greece is confronting are a stark reminder of the peril ahead. Italy will fail if the Government, after denying for months the gravity of the situation, continues to underestimate the long-term consequences of this crisis and does not adopt urgent corrective actions.This crisis has also shown that credibility, political credentials and an ability to govern are fundamental components of a country's position in a world scale economy. It is not only a matter of trusting the Government issued bonds. In fact the Italian manufacturing sector, its export capacity and the quality of its industrial base, are undisputed and still today, together with Italy's saving capacity, provide a positive outlook and it is what makes Italy diverse from Greece, Spain or Portugal.
The Italian Government is not credible today. A credible leadership is clear on reforms and policies but also places national interest before the self-interest of its leaders. The Partito Democratico has played a responsible role in the crisis, opposing without obstructing the budget measures. A series of economic measures made up of drastic cuts equally distributed to all portfolios, without a necessary spending review, affecting services and therefore every-day life of citizens. The budget did not contain real reforms, including the pension system that needs to be aligned to other EU countries, and did not pay any attention to growth, through direct incentives or personal tax reductions.
The Government has now announced a series of measures that should look at growth and development but in Parliament both the PDL (Berlusconi's party) and the Northern League are still trying to push through a phone tapping legislation that is designed to silence the press. The latest scandal involving Mr Berlusconi is all about phone conservations; strange characters talk with the Premier about politics, favours and sex and raise the possibility of the Italian Premier being blackmailed. Questions without answers; these are the questionable antics of a majority that saved a member of the Chamber of Deputies, Marco Milanese, from jail and confirmed the centre-right view that MP's are above the law. If Milanese was an ordinary citizen he would have been jailed.
These are the questionable antics of a majority that prevents a no-confidence motion, presented by the opposition, in order to save Mr Romano, Minister for Agriculture, from simply stepping down during a court case for mafia.
Again the Premier is placing self-interest before national interest and the interests of the EU. The EU Central Bank has already warned Italy to start a new era of reforms immediately, in order to boost confidence. It did not have in mind a change in the phone tapping legislation.
The opposition has argued for alternative proposals:
- The introduction of a tax on assets, rather than continue to increase the goods and services tax, currently at 21%,
- Incentives to specific sectors of the economy and higher tax for speculative and financial sectors, accompanied by strong measures to fight tax evasion and,
- a new moral agenda to rebuild the credibility of the political system – a moral question that remains open for the entire political system.
A new leadership with credibility can only be achieved with a change of Government, this may come as a consequence of an early election or a transition Government headed by a national political figure or simply by a centre-right that finds the strength to free itself from Berlusconi's legacy and elects a new leader.We need a political system with the ability to demonstrate to voters, allies, EU countries and the world that Italy is still capable to express a Government which reflects the hopes, dreams and aspirations of its people.
Marco Fedi, MP
Member of the Italian Parliament
Chamber of Deputies
Rome
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