Thursday, July 18, 2024

“Costs and benefits are below expectations.” The Bank of Italy cancels the super bonus

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After the blow dealt by the voters, a strong blow also comes from Giuseppe Conte Bank of Italy: The topic is that Great bonus. According to a study prepared by researchers at Palazzo Koch, the $170 billion spent in the period 2021-2023 on this type of support (about 3% of GDP on average per year) was not “They pay themselves“This means that, contrary to the phrase repeated by the 5 Star Movement in recent months, “The revenue generated from the promotion of economic activity resulting from bonuses Much less than its total cost For state coffers“, act”And Further accumulation of public debt Which you will have to pay back in the future“.

Super bonus, 45 billion loss

Bankitalia studies the “Facade Bonus” and the “110% Super Bonus”, active in Italy since the second half of 2020 – that is, during the Conte II government – and whose aim was to stimulate the construction sector through investments aimed at improving energy efficiency, anti-seismic properties and aesthetics. For residential buildings. The researchers compared the trend in residential investment spending in Italy with the trend in some European countries that did not adopt similar programs. According to the study, about a quarter of expenditures related to subsidized investments (more than $45 billion) could have been implemented even in the absence of incentives. “This result means that The fiscal multiplier was less than unityThat is, the benefits to the economy as a whole in terms of value added were less than the costs incurred in return for the benefits“, was confirmed.

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Incentives account for nearly three-quarters of value added growth in the construction sector, but at the same time they have played a role Limited role in other sectors. However, it should be noted that the analysis performed does not allow for a complete evaluation of the program. For example, the potential behavioral responses of firms and households in a context characterized by high input prices and long delays in the implementation of renovation works have not been identified, nor have issues related to the possibility of transferring tax credits to third parties been addressed. However, it is possible that some problems that were not examined by the Bank of Italy were negative, as they were caused by them Uncertainty regarding ultimate beneficiaries Subsidy and its implications on the general budget

Foti: “The damage caused by Piper County has been confirmed”

The Bank of Italy’s analysis raises an irrefutable fact about the super bonus for the first time: first “Deadweight loss” of $45 billion This is equivalent to 3 points of GDP annuallyThis was stated by the leader of the Italian Brotherhood group in the House of Representatives, Thomas Foti. The centre-right MP underscores how the additional tax revenues derived from the bonuses were far less than the total cost of the same to state coffers. “Thus the hypothesis dear to the Conte people that the zero cost of the super bonus disappears into thin air, leading instead and conversely to further aggravation of the public debt that will have to be repaid in the future.“Foti continues,” he continues.Instead of apologizing to 5-Star voters for supporting Draghi’s government, the Grillino leader should apologize for doing so. Burning major economic resources Which can be invested in pensions, schools or health care“, he adds.

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“To fit in”With a sense of responsibility“to set and repair”One of the many damages to the state coffers caused by the five-star government’s amateur season“Meloni’s government will provide”His official work is unanimously rewarded by Italians and is appreciated in Europe and in international forums“.

Karen Hines
Karen Hines
"Internet trailblazer. Travelaholic. Passionate social media evangelist. Tv advocate."

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