BIP Bonomi Data fuel recession fears we need reforms

BIP, Bonomi: “Data fuel recession fears, we need reforms”

For the President of Confindustria, it is more necessary than ever for Italy to complete the important reforms on the government table. The parties involved in a “fight between the flags” would obstruct Prime Minister Draghi. Bonomi opens up possibility of considering Italian nuclear production and warns ‘we are not ready to say enough about Russian gas right now’

The data on GDP for the first quarter of 2022 are not reassuring: Italy, says the President of Confindustria Carlo Bonomi, speaking to the director of Agi Mario Sechi, could fall into recession. The situation is now more complicated than during the Covid-19 pandemic. “Today, unfortunately, we are faced with a number of external components: the increase in raw material prices, the cost of energy,” says Bonomi, according to which it is more necessary than ever to continue the reforms currently underway “standstill” : taxation, competition, active labor policies, the judiciary . The fault, according to the President of Confindustria, does not lie with Prime Minister Mario Draghi, but with the parties who are fighting their “battle between the flags”.

Dragons and the parties

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Relations between Confindustria and Prime Minister Draghi are “very good”. Bonomi underscores how the prime minister has managed to reposition Italy “with authority in its natural river bed: Europe, America, NATO”. The Palazzo Chigi-Quirinale axis is also going well: with Draghi and the President of the Republic Sergio Mattarella, Italy can count on “a couple of aces”. The problem is that “the parties do not have the same interest in this great geostrategic plan.” According to Bonomi, the political forces do not allow Draghi to carry out the delicate reforms that Italy needs: “They have started to slow down the pace Reform measures for last autumn’s administrative elections: Turin, Milan, Rome, Bologna, Naples. Then there was a budget law that fell under the elections to the Quirinale. And unfortunately we will still have a very long electoral period, a numerically important administrative round will be elected in June, we have regional elections in Sicily in November and hopefully the political vote in March, unless you want to anticipate it. You have to stay close to the prime minister to have the strength to make reforms. Draghi had a clear idea of ​​what to do, not from today: the problem is that the parties give him the opportunity to do it.

“Italy is unable to completely replace Russian gas”

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The sanctions imposed on Russia do not affect Moscow’s “financing capacity”. If the Kremlin is to be seriously struck, Bonomi said, “Russia’s exports of gas, oil and coal must be blocked, but the repercussions must be taken very seriously.” Among these, we must consider what would happen if Italy blocked imports of Russian gas. For Confindustria’s president, “we cannot completely replace Russian gas immediately, that would mean a collapse of the country’s production”. The association of industrialists is still willing to “support the government in its decisions”.

Nuclear Energy in Italy

One of the most discussed topics in recent weeks is also Italy’s position on nuclear energy. Bonomi – according to whom Italy is paying for “decades of wrong energy policies” – reflects how the country is stuck in “a 34-year-old referendum on technology 34 years ago. Technology has changed everything. I want this country to discuss the merits: there is new generation nuclear power, can we talk about it? For Bonomi, the reflection must be “meritorious” and “find a basis for discussion in Europe”, where “14 out of 27 countries” already work with nuclear energy.

From the pandemic to the war in Ukraine

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For Bonomi, speaking of industry does not only mean speaking of productivity. It is also a “national security issue”: the aftermath of the war in Ukraine proves it. After the economic recovery from the end of the worst of the coronavirus pandemic, “it seemed like the time had come for the big restart of the economy”. An illusion, according to Bonomi: “The light at the end of the tunnel was that of another train, that of Putin’s war, the rising tensions between the United States and Russia, a Europe that risks being the Manzoni clay pot between the two iron vessels”. According to Bonomi, it is time to “look at reality and engage with Italy on the idea that we are in a conflict that will shape a new world order. Which game do we want to play? Do we have a vision?”.

Economic crisis and labor costs

Another open game on the government table concerns the world of work. According to Bonomi, it is important that taxes are not increased: “16% of Italian companies have already reduced or stopped production due to the increases, if war conditions continue another 30% will stop production, which means that almost a ‘ Business of two in Italy threatens to grind to a halt”. Bonomi says Confindustria is ready to sit down with Labor Secretary Andrea Orlando, but first she needs to have a proposal to discuss. And he specifies: Linking future interventions to another contract extension would be a “wrong” choice.

Business

The Confederation of Industrialists argues that intervening in this sector is the only way to put more money in the pockets of Italians and that a new idea could earn them up to an extra month’s salary. However, there are those who have advanced doubts

In the last few days we have returned to talk about the possibility Lower control wedge This reduces the difference between the company’s labor costs and the employee’s net salary. The Secretary of the Democratic Party, Enrico Letta, stated that such a decision was and would be “the right way”. everyone’s interest

There is a proposal from Confindustria on this subject. President Carlo Bonomi spoke of a “serious and strong cut“Focused on low-income groups, or “People under 35,000 euros”. In practice, explains Il Corriere della Sera, industrialists plan to commit 16 billion euros of public funds to reduce the rate paid by employees by two-thirds and the rate paid by employers by one-third

The allocation would actually end in 2022 €14.5 billion because a mini-contribution relief of 1.5 billion for incomes up to 35 thousand euros has already been introduced

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