by Francesco Pontelli
Tax incentives can lead to contradictory outcomes depending on their positioning.
It seems incredible that even today it is necessary to specify the difference regarding the results obtainable with the incentive policy, whether positioned upstream or downstream of any industrial company.
In the case of a supply chain, for example, in the automotive industry, any form of incentive relating to encouraging the purchase of a car, exactly as chosen by the government in office, represents support for “commercial” policy that is almost always used, as he said Marchionne in past years, in favor of the sale of foreign and perhaps recently Chinese cars.
Even if the examples are always very difficult to prove, truly illustrative, it would be as if the building bonus had been adopted as an incentive for the sale of existing real estate, and not in favor of a possible energy efficiency improvement as actually happened, even with disastrous as regards the debt to public spending.
From this perspective, within a development policy of any industrial supply chain, the same incentives should represent the first form of support for production or at least for the maintenance of complex supply chains within the national border.
Only in this case, therefore, would these take on the characteristics of a form of support not towards a single manufacturing sector, but more overall, employment itself would benefit, and consequently also the development of internal demand and therefore of the GDP itself.
In the complex moment in which the economic/industrial system finds itself, for the first time since the post-war period, faced with the fifteenth
decline in industrial production, a conscious government would have diverted every incentive upstream of the supply chain, rather than to development of product trade to be able to acquire a few decimals of growth.
As the strategic objective should be to reverse the trend of the disastrous decline in industrial production, which is still not conditioned today by the supportive fiscal policy expressed by the government in office as by the previous ones.
It should be remembered, in fact, that recent governments like the current one have shown themselves to be the expression of an embarrassing economic carelessness by opting for the choice of tax bonuses and incentives downstream of each industrial chain and therefore also of the Automotive one.
And so the results (or perhaps better the consequences) are obviously not long in arriving as mentioned below (**), with a drop in industrial production in the automotive industrial sector of -20%.
A strategic, political as well as economic disaster, which cannot simply be attributed to the international situation, but also to the fundamental incompetence of those who have managed the country’s economic and industrial policy over the last twenty years.
For the government in office there is also the aggravating circumstance of not being able to understand the effects of this dramatic trend in the last 15 months of decline in industrial production.
Returning, therefore, to fiscal and economic incentives, it would be appropriate to remember how precisely from their positioning, whether upstream or rather downstream of the industrial chain, they will be able to guarantee a future for our country.
At the same time, the European Commission, which operates without a majority of the new Parliament, and therefore in a democratic context should limit itself to ordinary administration, approves a system of duties for Chinese cars, while these are still encouraged by the Commission itself today as they are electric vehicles.
Such confusion had never been recorded from the post-war period to today, demonstrating the cultural, political and economic inconsistency of the European political and ruling class, to which unfortunately the Italian one also contributes.
Such strategic confusion can only condemn the European continent to its industrial and economic extinction.
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(**) https://www.motorionline.com/anfia-ad-aprile-in-italia-la-production-cala- Ancora-203/
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