Reforms are the only answer

No one, even less a leader of a country that co-founded the European Union, can afford to ridicule Italy with small smiles and winks. Firstly, because before weakening Italy's credibility, it weakens the credibility of the euro, of the common currency. And also because Europe itself reasserted Italy's credibility by entrusting decisive roles in managing the crisis to Italians. Mario Draghi in one week will take the helm of the ECB and Vittorio Grilli precisely in these days was called to coordinate negotiations on the Greek debt haircut: great civil servants that Europe asks to borrow from that same Italy that someone would like to ridicule.

Having said this, and even more because of this, there is an Italian political responsibility, and more specifically a responsibility of the government and of the prime minister, if Italy finds itself today in this situation. It is not so much the scandals, with escorts and judiciary proceedings, which however do not help in being thought of highly around the world, but it is the inertia on economic reforms that has allowed international financial markets to place us under scrutiny almost like Greece.

The day after the approval of the summer package, il Sole 24 Ore wrote that those measures would not have been enough. Since then, the European Union, the ECB, all business and labor associations as well as financial institutions urged for additional measures both in terms of rigor and in terms of growth. The August austerity package was yet another lost opportunity. The constant postponements of the growth decree were the umpteenth proof that the Government and ruling coalition do not seem to have the political strength and the peace of mind to be able to pass those difficult but necessary reforms.

We have been repeating it for months now: what is needed is an increase in the retirement age in order to free the resources that are necessary to reduce the tax wedge, a reduction on corporate and labor taxes also through a levy on personal wealth, liberalizations, asset sales and so forth.

The menu can obviously vary. Today Europe gave us its menu, which is not that different from the one above. What is important is that the Government finally takes on responsibility for real reforms, which are able to stimulate growth and reaffirm rigor in public accounts. Now there really is no time left. Our European partners are asking us for signals before reaching a definitive agreement on the rules for the bail-out fund. This means just a few days, maybe just a few hours. It is not an easy situation. But the responsibility if we got to this point belongs to who is called upon to finally decide.

(traduzione di Yael Schrage)

©RIPRODUZIONE RISERVATA