Cutting the wedge and reform of the basic income. May 1 Meloni format

The message is clear, almost obvious: while on May 1 the unions are in the streets, the government works. Symbols count above all in politics, but Giorgia Meloni is right not to waste time: even if the economic situation shows positive signs, several alarm bells are ringing. In the first quarter, GDP grew by 0.5 per cent and 1.8 per cent on a trend basis, well above the average in the Eurozone (+0.1 and +1.3 per cent). Germany is at a standstill and the USA, the main outlets for Italian goods, are slowing down and the government has decided to support domestic demand with fiscal measures. Monday on the table there are three packages: another cut in the tax wedge for workers who receive less than 35,000 euros a year; a new Inclusion Check starting next January 1; review of futures contracts. These are the chapters announced in the letter to the unions convened for Sunday evening, but it is clear that it will not be enough. The tax reform needs to be defined (on the flat tax CGIL, CISL and UIL I don’t agree) and it is necessary to understand how the incentives for children announced by Giancarlo Giorgetti will be introduced. Above all, we need to address problem number one: how to raise wages without triggering a price run-up. On the trade union side (starting from the CISL) the request for a systemic approach is growing. Yesterday at Cnel (Renato Brunetta is the new president) Giuliano Amato recalled the thirty years since the Ciampi agreement, pact to three government-unions-businessmen which set a planned inflation rate as a reference point for income dynamics. Such a scheme is outdated, but buffering the ex post consequences does not serve to curb price increases or ensure non-inflationary growth in payrolls.