Visco: “Yes to improvements on the Pnrr, but there’s no time to lose”. And opens up to tax reform

“The success of the Pnrr will depend on the ability to combine public action with an adequate response from the productive and financial system: there is no time to lose”. Ignatius Visco, after two mandates and twelve years at the helm of the Bank of Italy, thus delivers his greetings to the country, in a long report which, in addition to retracing the developments of recent years, deals with pragmatism the main economic and social challenges facing Italy involved. Which translate, first of all, into the reforms of the recovery and resilience plan, defined by Visco a “crucial junction” and “a rare attempt to define a strategic vision of the country”.

To address them, the solutions travel on two parallel tracks: the “strengthening of the public administration” must be accompanied by the “preparation of credible transition plans”. A message therefore addressed not only to the government, but also to businesses: “To seize the opportunities, intermediaries will have to equip themselves with adequate climate risk assessment models”, writes the governor. A cooperation with a medium-long term time horizon: “Relatively long times will be needed, such as to involve several legislatures”. However, delays cannot be afforded for this: the invitation is to continue “with constancy and foresight” in the implementation of European programmes. Because, precisely, “there is no time to lose”.

In accordance with the Recommendations arrived from the European Commission, also for Visco public finance management must remain “prudent”. And “the achievement of consistently high growth rates remains central”. If the general picture remains “comforting”, in fact, “it is important to keep the level and quality of public investments adequate”. Thus we return to bureaucratic efficiency, testifying to the fact that growth and implementation of the Pnrr go hand in hand. But Visco also spends himself in an openness towards the reform of the tax justice to the study of the government, while at the same time avoiding expressing himself on the merits of the ratification of the Mes.

Finally, an important reference is that addressed to the labor market. “Too many, not only among young people, do not have a regular job or, despite having one, adequate contractual conditions are not recognized”, writes Visco. Which, also in this case, does not remain in the abstract but descends into the debate of measures to contrast precariousness: in this sense, “the introduction of the minimum wage can respond to non-negligible needs of social justice”. Just as a determining factor will be the management of the migratory phenomenon, because as governor Visco explains again “only an increase in the migratory balance will be able to mitigate the effects of the decline in the Italian population”. For this reason, the invitation is to review the meshes of the flow decree.