Giancarlo Giorgetti realized that something had to be done on March 13th, because they were risking the state’s accounts and therefore he too as the head of the Economy: the minister is not willing to put his signature on budgets that undermine the credibility of a debtor of almost three thousand billion euros.
If that day two weeks ago determined the turning point of Tuesday’s decree, it is because the data on the real estate tax credits paid by the State for the first two months of the year came out. The situation was so out of control that Giorgetti causticly defined it as follows: «A country addicted to it». For what, it is obvious: the total bonuses for the renovation of Italian homes from October 2020 to this month has probably exceeded two hundred billion euros, given that in mid-November it was already at 160 and since then it has only done grow. By way of comparison, the state-funded national health fund is worth 36 billion this year and the contribution
from Italy to Ukraine 1.3 (in total since the beginning of the war).
Another 14.7 billion were devoured in January and February alone
In January and February alone the Superbonus for environmental restructuring devoured another 14.7 billion (Corriere dated 14 March), but the production of new public debt with this instrument in the first two months of the year was at least twenty billion: more five plenty must have left with the version dedicated to anti-seismic measures. In recent times the weight of the latter has grown in proportion to the total Superbonus; yet, incredibly, for the Sismabonus – after 25 billion in costs – there was still no monitoring mechanism. The works are done, large tax credits are accrued by private individuals, but the State realizes that it has taken on new debt only ex post: once this appears on the Revenue Agency’s radar, perhaps more than a year after the renovations already carried out.
In reality, Mario Draghi’s government had foreseen monitoring for the Super-Earthquake bonus in April 2022, by decree. But then in these two years it was not implemented. Result: in recent months the government, on the sly, had to remove the Sismabonus from the measures financeable with the National Recovery and Resilience Plan (because it was not able to report any results) and with the Pnrr funds thus saved it financed even more plus the hated “green” Superbonus.
With this decree Giorgetti hopes to have closed the loopholes
Now, with Tuesday’s decree, Giorgetti hopes to have closed the loopholes. In a private meeting yesterday he expressed confidence in being able to confirm in the Economic and Financial Document (Def) of 10 April a public deficit forecast of 4.3% of gross product for this year, as already indicated in the autumn. But the minister knows that it won’t be easy: not even the latest decree eliminates all the queues of the Superbonuses started between 2022 and the beginning of 2023; the work in the majority to soften the measures on the Earthquake bonus has already started; while tax credits to Industry 4.0 companies are also exceeding forecasts, by around 0.2% or 0.3% more deficit per year – in proportion to GDP – at least until 2025.
«If the technical report is poorly done, it should be done better»
The situation is therefore tense. This was seen yesterday in the Chamber when Giorgetti let slip another sharp joke, this time directed at a structure of his own ministry: «If the technical report is poorly done – he said – we will inform the General Accounting Office of the State that it is done badly and to do it better.” There was talk of the privatization of a share of the Italian Post Office, but Giorgetti’s dig at the state accountant Biagio Mazzotta does not seem casual. The minister would have already discussed at Palazzo Chigi the idea of replacing Mazzotta after the Def in April, in some way pointing out him as primarily responsible for the great drift in bonuses. Certainly the latter were supported in various ways by all the parties of the two poles – even by the current majority – and the impact estimate was up to the Finance Department. What is certain is that Mazzotta recently raised doubts about the Pnrr revision decree, while the government’s measures for a “softer” tax collection also raise questions regarding their impact on the accounts. The technical reports of the Accounting Office thus become delicate exercises, even more so in view of a very difficult upcoming budget law. Mazzotta himself was at the Quirinale at the beginning of this month.
Subscribe to L’Economia’s newsletters
Whatever it Takes by Federico Fubini
The challenges for the economy and markets in an unstable world
Europe Matters by Francesca Basso and Viviana Mazza
The Europe, the United States and Italy that count, with innovations and important decisions, but also small notable stories
One More Thing by Massimo Sideri
From the world of science and technological innovation, news that changes our lives (more than we think)
And don’t forget the newsletters
The Economy Opinions and The Economy 6pm
March 28, 2024
© ALL RIGHTS RESERVED
