«Excessive corporate profits are inflating inflation in Italy»- Corriere.it

In the euro area, it was only the two of them who spoke about it: the governor of the Bank of Italy Ignazio Visco and Fabio Panetta, the Italian in the executive of the European Central Bank. They were the only ones to say that inflation it is also high because many companies report rising profits, having failed to contain prices when the cost of raw materials has fallen for them in recent months.

Maurizio Landini, as general secretary of the CGIL, what do you think?
“That’s right. Yet it is a removed topic, it seems a taboo. Exaggerated profits are being made on the shopping cart, because in recent months production costs have fallen a lot – let’s think of the price of gas – while increases for families have continued to run”.

Panetta and Visco say that an incomes policy would be needed, in which workers and businesses are committed to stopping inflation. Do you agree?
“Wages have to go up. There is one point he never remembers. Since the beginning of this wave of inflation, we have only heard of the risk that contract renewals will trigger a price-wage spiral. What we have seen is different: firm wages and profits of growing companies, which now do not withdraw the increases even if they produce at much lower costs than six months ago. And still weak business investment ».

Panetta says: if companies don’t moderate increases, we risk ending up with higher rates. Right?
«In the face of companies that do not moderate price increases, an extraordinary solidarity contribution on profits becomes indispensable. It makes no sense that corporate profits or real estate and financial income enjoy a lower levy than that on employees and pensioners. It makes no sense for income to pay different taxes depending on where it comes from. If anything, those who work and produce should be favored, not rents».

On inflation from profits, do you see a role for the Antitrust?
“There needs to be more control over prices and tariffs, because there is an element of speculation. What was once the Ministry of Economic Development could take care of the controls ».

You already know what they will say: “Landini’s usual director”.
«In Italy, the salary on average is taxed at 40%, while the real estate rent at a maximum of 21%. And even the wealthiest part of self-employment at 15%. What do we want to call this, madness? And what can we call the fact that the latest scrapping decree – yet another amnesty – introduces the non-punishability of tax crimes even on very high amounts? One more invitation to escape. Meanwhile, workers and pensioners continue to pay for the social system that everyone else benefits from too. These things now seem normal to us, but they are not.

However, the government reduces the tax burden on labor for the low-middle incomes, by another three billion. After the interventions of the Draghi government and the first of Giorgia Meloni.
«Provisional measures. The same reliefs of the previous government expire at the end of the year. And then? But above all, these are decidedly insufficient measures, given the loss of purchasing power over the past two years. And financed by cutting social spending, that is, making the workers themselves pay. What would an employee do with an extra 40 euros a month, if he has to pay 250 euros to have a medical examination in an acceptable time – due to cuts in health care – and in the meantime inflation has taken away 12% of his purchasing power in a year? Also for these reasons we take to the streets on May 6 in Bologna, on the 13th in Milan and on the 20th in Naples».

Why are you talking about cuts? There is no spending review in the Economic and Financial Document.
«There is a cut in the basic income while poverty is increasing, there is not a euro for the renewal of public contracts and there is a freeze on health expenditure. In real terms, these are significant reductions. And there is a clear cut in the cost of the public administration, which will make it difficult to implement the National Recovery Plan: how do we hire it and motivate the staff?».

Don’t you think the Pnrr is a great occasion, on which we shouldn’t be divided?
«We absolutely need to make the investments of the Pnrr and we are ready to do our part. Not only for the country’s growth, but also to help change austerity policies in Europe. But we are running the risk of losing this opportunity and damaging our credibility in Europe by continuing to accept and encourage tax evasion and by maintaining a distorted tax system in favor of income».

Meanwhile, we have lost the game on opening up to other forms of green cars, in addition to the electric one.
“A badly waged battle. The dominant technology of the future is electric: there’s no use trying to lengthen the times, we have to be at the forefront of processes. But to do that, we’d have to create a system and it’s not happening. I am thinking of the infrastructures of the transition, of the steel supply chains, of the batteries, of the skills for the digital operating systems of the new cars. I am thinking of the permanent training of workers: it must be a right and it is in the interests of companies. The metalworkers’ unions and Federmeccanica have presented a joint document on these points, for now without any hearings. It is time to set up a national agency capable of directing development».

Do you agree with those who say that in Italy there is a closure to the new?
«The government has banned synthetic meat, which nobody produces in Italy. Faced with the fear of change, we try to reassure ourselves by trying to resist. Change must be governed, negotiated, regulated. Exercise democratic control, even over artificial intelligence. Don’t leave it to the market, nor delude yourself that you can remain in yesterday’s world».

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