Tag Archives: United Kingdom

Italy: the Mario Monti’s ‘not adding up’ accounts

5 Giu

About seven months ago, when Mario Monti’s government was on startup, I wrote that the administration of the Italian country will, before this summer, stall.

Eighteen days ago, I noted that “data are showing us that inflation is rising, economies on ‘next retired’ will not so many, nobody knows how much F-35 fighters are on demand (not 131 and even 25) and “it is time to spread requests, even among those more informed, to reshuffle of the Monti’s government or to go to early elections. “

Today, Corriere della Sera headlines “The state collects less: Tax revenue down. The Def (Document of Economics and Finance): 3.477 million euros less in the first 4 months of the year than expected” and adds that ” down the roles to -93 million euros (-4.5%), post corrective to -160 million euros (-2.2%) and the tax revenues of local authorities to -84 million euros (- 1.2%). “

A month earlier (and 66 days ago), I wrote about the incoming inflation, “something expected if dealers do not sell (stagnation) and taxes skyrocket. The alternative would be to see just warnings of failure.

Inflation and recession does not get along very well, indeed, are not sustainable from a financial-production system. Any professor of economics and proponent of a “new world order” knows that this situation should be avoided at all costs.

A situation that is being played while the end-year datas confirm that tax evasion and corruption are developing in a fairly predictable mechanism. In fact, the obsessive monitoring of bank accounts is creating a predictable parallel circuit of activities paid in cash and, of course, unbilled or under-billed.

This is what an unfair Welfare and a greedy and wasteful taxation generate. The books in colonial and Third World history  drip with similar examples.

But Elsa Fornero and Corrado Passera do not know this – it is an evidence – and can not understand that we need a capital income tax and the abandonment ‘to the sharks’ of Unicredit and its German partners.

Now the omelet is done as the Pride and Prejudice of Mario Monti is going to end, jointly with hundreds of  ‘professors’, of which  ministries or commissions are lavishly filled.

And, with them also – we hope – one of the most uncorrect, presumptuous and not competent generations of the history of our Italian Nation, as facts confirm.

It is no coincidence that just yesterday Stefano Fassina – the fifty y.o. expert in public economics of the Democratic Party – has presented “the ace of spades” , fearing the approach of early elections.

Nothing wrong with that, almost everyone – in Italy –  has pretty much flopped and nobody has paid the lien, even, at times, he has been called to ‘finish the job’.
The point is that the infamous ‘next retired’ reform is in force and is only doing damage, the unfair labor reform has too many ‘forgotten’ and too many ‘leaps forward’ and let us NOT hope, the actual entity of F-35 fighters (which are very expensive for costs and maintenance too) to buy is still unknown.

No talking about South Italy, even if  they occupy streets and towns; just three days if there is an obscure and very serious Terror attack in Brindisi against students.

Nothing for women, education and professional training, nothing for security as for snow or earthquakes, road conditions or robberies. No family, no kids, no elderly, no disabled: ‘others’ are the priorities of this government majority.

Just self-righteous sloth and slack inaction about Healthcare, where the righteous cuts have partially interrupted the ‘banquet’, but that – without monitoring and government -, is at the mercy of different regional businesses or lobbies and their instability or at the mercy of  those oligarchies those form the ‘core’ of consensus of  this cleptocratic party system. The sicks? They are … patients. The black hole in the budget deficit? Come on over …

Provinces to be abolished by law, but that may be by law. Or, the electoral reform that is not, since the party system will lose many seats only … while it’s better they save current seats … that are one thousand, three times minus than 300, as proposed.

This is the state of the Italian Nation at present and, now, is no longer a citizen blogger to evidence this: the disaster is signed in the current Document of Economics and Finance (DEF). Their hands signed it.

Congratulations, therefore, to Mario Monti, Elsa Fornero and Corrado Passera for … their ability to hypnotize other governments, party leaders and directors of newspapers.

Unfortunately, their accounts, at the first six-monthly review, do not add up.

originale postato su demata

Fiscal Compact, a “difficult to digest” Treaty

20 Gen

National debt continues to be the main point of failure of the European Union. In these days, Ecofin Council is leading to the conclusion a Fiscal Compact Act, an international treaty that will significantly reduce the powers of parliaments in economic matters … that wish involve all EU countries, while stating that  memberships will be ‘at least twelve’ …

That’s what it is the Treaty hardly required by Monti, Merkel and Sarkozy:

  •     the medium-term objective is that government budgets should be (or come after a ‘path toward’) in balance or in surplus
  •     during convergence in medium term, the annual structural deficit can not exceed 0.5% of gross domestic product at market prices. The Parties shall ensure a rapid return
  •    partecipant countries may temporarily deviate from their target in the medium term only in exceptional circumstances
  •     ’exceptional circumstances’ means a period of severe economic downturn or an unusual event outside the control of the partecipant countries
  •     in case of significant deviations from the medium term, a ‘correction mechanism’ should be activated automatically and partecipant countries have an obligation to predetermine it
  •     partecipant countries must introduce appropriate rules into national law within one year after entry into force of  Treaty by means of binding provisions and permanent character, preferably a constitutional
  • partecipant countries shall ensure the independence of national institutions responsible for monitoring compliance with the rules
  •     treaty establishes an ‘Annual Report of the structural balance of public administration’, net of one-off and temporary
  •     when ratio of government debt to gross domestic product exceeds 60% of the reference value the partecipant countries must implement the excessive deficit procedure, as the EU Regulation
  •    European Union must implement a program of coordinated fiscal and economic partnership (including a detailed description of structural reforms) for the partecipant countries that are the subject of an excessive deficit procedure
  •     implementation of the plans programmed annual budget will be monitored by the Commission and the Council of Europe
  •     partecipant countries report on their ex ante plans to issue debt
  •     partecipant countries whose currency is the euro shall undertake to support the proposals or recommendations submitted by the European Commission in a Member State violating the criterion of the excessive deficit
  •     if a partecipant country considers, regardless of the Commission report, that another State has not complied with the terms of the agreement, may bring the matter to the Court of Justice, with a binding ruling
  •     partecipant countries shall ensure that all the economic reforms that intend to undertake will be discussed ex-ante and, where appropriate, coordinate with each other
  •     Premiers of the partecipant countries whose currency is the euro shall meet informally in meetings of the ‘Euro Summit’, where can be invited the President of the European Parliament and the European Central Bank Governor
  •     President of the ‘Euro Summit’ is appointed by the Premiers of the partecipant countries whose currency is the euro by a simple majority
  •     partecipant countries shall define the organization and promotion of a Conference of Presidents of the Budget Committees of national parliaments
  •     the Treaty will be ratified by the parties in accordance with their respective constitutional requirements and shall enter into force on 1 January 2013, provided that there are at least twelve partecipant countries

What will discuss, starting from 2013, the parliaments of many European states is difficult to understand, since the spending limits and terms are defined elsewhere and ‘ex ante’.

As it is difficult to understand how countries like Great Britain, Sweden, Norway or Danemark will balance the initiative in the European Union of an ‘Euro Summit’ that works without them.

Or what could happen in Italy or Greece, where the Treaty, that reduces the effective democracy, will be legitimately approved  – at least in the eyes of citizens – by unelected governments, parliaments unable to reform themselves, corrupted parties ‘in re-construction’.

originale postato su demata