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The erosion of the corporate capital is one of the problems caused by the Pandemic. What are the possible solutions?

 

Good evening by Giulio Centemero on giuliocentemero.com.

Last Tuesday the newspaper Libero published the Italian version of an article I had written for the Parliamentary Network at the IMF and the World Bank.
The article starts from the fact that one of the consequences of this pandemic is the erosion of the corporate capital, points out that sustainability is a key driver for growth, talks about the fact that the SDGs are perfectly integrated and finally analyses the position taken by Pope Francis in the encyclical “Praise Be To You”.
This is a short analysis but as lawmaker I need also to provide answers to this issue; some amendments to the “Sostegni Decree” are being drafted and within the Economy department of the League we are trying to find solutions through different sources, including the Civil Code. Feel free to send me your thoughts about it!

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Videos

‘Dl Sostegni’: an excellent result thanks to the League

 

Good evening by Giulio Centemero on Giuliocentemero.com.

Last week as a committee we had to issue our opinion about the recovery plan: personally I insisted to include a specific condition aimed at capitalizing enterprises, asking in particular to prolong tax credit for IPO costs and implementing it also for the crowdfunding sector.
Equity markets are fundamental for recovery and for the lifecycle of enterprises from A to Z. The so called “sostegni” Decree was issued by the government and many suggestions of the league were put into it especially the increase of beneficiaries and simplification of the procedures. Consider also that this decree consists in 11billions measures while the Conte bis government allocated about the same amount in five decrees.

Thank you for your attention and see you next week always on giuliocentemero.com.

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Videos

The Recovery Fund resources will be avaible by the end of summer

 

Hello and good afternoon by Giulio Centemero on giuliocentemero.com.

On the 8th March we had the hearing of minister Franco about the recovery plan.
Minister Franco explained that ninety percent of the 750 billions of the Next Generation EU will be distributed through the Recovery and Resilience Facility (RRF). The guidelines of the Commission provide that in order to have access to the resources each Country has to draft a plan describing investments and reforms in six areas: green transition, digital transformation, employment and smart/sustainable&inclusive growth, social and territorial cohesion, health and resilience and next generation policies (including education and skills’ development).
At least 37% of the allocation has to sustain the green transition while at least 20% the digital transformation. Plans should be submitted to the Commission by the 30th April 2021, the Commission has 8 weeks to evaluate them and send them to the Council which has 4 weeks for its final decision. It means that the resources will be available by the end of summer. Mr. Franco also said that the main reforms for Italy will be in the areas of Justice, Public Administration and Simplification.

Thank you for your attention and see you next week always on Giuliocentemero.com.

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Economy and International relations

Riad T. Salamé (Lebanon) is Awarded the PAM Award (2019)

Every year, the Parliamentary Assembly of the Mediterranean (PAM) offers awards for regional excellence in various fields, ranging from arts and sports to economics and politics. Distinguished individuals, institutions and organizations are recognized for contributing to the betterment of the region by bridging relationships, fostering understanding and respect, and encouraging socio-economic cooperation, political dialogue, confidence building and conflict solution.

This year, I proposed Riad T. Salamé, the Governor of the Central Bank of Lebanon and the Governor for Lebanon at the International Monetary Fund (IMF) and the Arab Monetary Fund (AMF). Good monetary policies and economic development measures make it possible to stunt poverty and avoid resulting conflicts, like terrorism and war, in unstable contexts such as Lebanon’s. Thanks to his various economic and financial endeavors, Salamé has made it possible for Lebanon to maintain monetary stability during critical events, such as the assassination of PM Rafic Hariri, the 2006 War, the Syrian Crisis and the recent dispute with the Kingdom of Saudi Arabia (KSA) in 2017. His actions have helped maintain stability in an area of political and social unrest, demonstrating how economic conditions can help enhance peace.

I look forward to meeting Mr. Salamé and listening to his acceptance speech in Belgrade for the 13th PAM Plenary session and 36th PAM Bureau Meeting, where he will be duly awarded for his achievements.

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Economy and International relations

Italian Economy is stronger than the French one. Our regional structure makes the difference.

Last Sunday I had a connecting flight in Brussels and got a copy of Saturday’s 5th January “L’Echo”, the Belgian French speaking most popular financial newspaper.

One article caught my attention. In particular Geert Noels, economist and founder at the investment firm Econopolis, compares the current situation in France to the Italian one.

Yellow Vests’ protests pushed France to put its reforms on the shelves. At the same time Germany thinks to solve the problems of a “too big to fail bank” creating another bank, a bigger one. The ECB bought some time investing 3’000 billions Euro in debts acquisition. But now we are in a cul de sac with only a way out called: structural reforms.” Mr. Noels write.

He adds “French economy is the big sick of Europe. The Country has the highest tax pressure in the Eurozone, competitiveness lowered, public finances are unstable. In order to satisfy the “Gilet Jaunes” the public deficit will increase up to 3.5% of the GDP in 2019, a number that doesn’t take into consideration the deterioration of the economic conjuncture.”

While German and French economies were comparable about 15 years ago the differences raised without anyone paying attention because the EU institution were focusing on more sick (?) member countries like Greece and Italy.

“While Italian economy faces structural problems, especially in the South, it also has some hidden assets that France doesn’t have. E.g. Italy has a lower ratio of private indebtedness, a significant ratio of savings, a surplus of the current account and a more solid manufacturing industry. The problem of Italy is more the force of the Euro than, the often highlighted, public Debt.

If we don’t take into account Paris, France has an incredibly low per capita GDP. The Hexagon is organized in a centralized way while Italy is decentralized, thing that makes a huge difference in the disruptive times we are living these days. The average Italian citizen can adapt his habits if necessary bypassing the State while the average French citizen waits for Paris instructions.”

In a nutshell the Belgian economist says that our multilevel governance, structured around our Regions (e.g. Lombardy) has a positive impact for the Economy.

Within the possibilities of the “Titolo V”, i.e. articles 114 and on of our Constituion, a number of powers can be either assigned to the central government or to the Regions.

Regions Veneto and Lombardy (both with League’s governments) held referenda last year to avocate more powers and the president of Emilia Romagna (Democratic Party) asked the government for the same requests.

The Minister of Regional Affairs, Ms Stefani, is ready to submit the agreements drafted with regions Veneto and Lombardy (Emilia Romagna’s one is still in process) to the Prime Minister in order to start the procedure.

It is very likely that other regions, in the South Puglia showed already some interests, will follow this path.

More autonomy for the regions would generate an healthy competition among territories, creating more value and providing more financial stability.

Institutional architectures like the ones of Switzerland and USA are for sure more efficient than the centralized ones and the Italian government seems to understand that.

Autonomy is our structural reform.