Bank of Italy criticizes the Meloni manoeuvre: “Employees penalized”

«The budget policy aims at a further reduction in the debt/product ratio over the planned three-year period. Given the high level of public debt, the aforementioned uncertainty about economic prospects and the high levels of interest rates, maintaining this objective is a necessary choice”.

This was stated by Fabrizio Balassone, head of the economic structure service of the Bank of Italy in a hearing to the joint budget committees of the House and the Senate on the budget law.

“The introduction of the basic income represented a significant step in the modernization of the welfare of our country” and according to INPS without income in 2020 there would have been “one million more poor individuals”, said Balassone. The current structure, however, has some critical issues especially as a measure to accompany work, and the “reform announced by the government could strengthen” this aspect, she added.

“The provisions on cash payments and the introduction of institutions that reduce the tax burden for non-compliant taxpayers risk coming into conflict with the push towards modernization of the country that animates the Pnrr and with the need to continue to reduce tax evasion», said Fabrizio Balassone.

In manoeuvre, some of the measures not connected to the energy emergency «have critical aspects that the Bank of Italy has repeatedly signaled in the past with reference to similar measures. The discrepancy in tax treatment between employees and the self-employed, and within these between those subjected to the flat-rate regime and excluded, is increased”. And he added: “In a period of high inflation, the coexistence of a flat tax regime and one subject to progressiveness such as the Irperf entails a further penalty for those subject to the latter,” he said.