European Commission head Jose Manuel Barroso criticised Italy
this week for publishing a letter from the EU requesting
clarifications on the Italian rule-breaking budget that will come
into effect from this coming year onwards. Matteo Renzi , the
Italian Prime Minister, responded by announcing that he intended to
make public the cost of the European institutions, palaces and
Brussel's own inflated spending. With this response, he is
questioning the European Union's authority to dictate rules to
the Italian government in regard to budgeting. Mr Renzi has said in
regard to the fears that Italy is the sick man of Europe that
'the Italian budget poses no problems.' In all fairness to
Matteo Renzi, he is trying to do something that other Italian prime
ministers have failed to do. Setting out just recently (Oct
7th) an employment bill that is intended to provide
austerity measures that no one doubts Italy needs.
However is the EU right to have concerns over Italy and is
enough being done to rectify Italy's problems? Key it seems to
the debate is proposed changes to Italian legislation and Italian
laws. Yet what is likely to change, when and will it make a
The IMF forecast GDP growth in Italy to be –0.2% this
year, sovereign debt is at €2.2 trillion (135% of GDP) and
further risks of deflation (35%) could push this debt even higher.
Over the past five years the Italian economy has shrunk by 9.1% and
has been stagnant since 2000. It is against these figures that
Matteo Renzi proposed the new employment bill. After a struggle in
the upper house, with M5S senators throwing coins at the government
benches, the bill was eventually passed with 165 in favour and 111
against and 26 PD senators putting their names to a document
criticising the lack of detail in the bill.
According to Mr Renzi this employment bill is only the beginning
of a whole series of structural reforms, due to be approved by
Italian Lawyers in April 2nd 2015. The proposed changes to
legislation put through the Senate help to improve the employment
prospects of young people yet does not seem to go far enough on the
fate of Articolo 18, which makes it very difficult to sack
employees in companies that employ more than 15 people. Further to
this the unions have promised to fight this all the way and with my
knowledge of the Italian legal system I have doubts whether these
reforms to Italian employment law will have the desired results, I
think there is a long road ahead and having these reforms in place
by April 2015 is highly unlikely. As well as this, in Italy
companies get state money to keep workers rather than get rid of
them, half a million workers are in 'cassa integrazione'.
The new bill I dont not think will change things here, people have
too much to lose with any drastic changes to the Italian legal
system in matters of employment law. As well as this, in my
opinion, a total reform of Italy's business rules and Italian
tax system need to be made yet these changes will not effect these.
Setting up a business in Italy is a very complex matter and
according to the Sole 24 Ore newspaper, 'Italy has the heaviest
'total tax' burden on businesses in the world at 68 per
Even though the EU's Fourth Anti-Money Laundering Directive (EU 849/2015) ‘on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing' has only recently hatched from its legislative egg, . . .
Turkey has updated its project-based investment incentives scheme, providing financial support for innovative, technology-oriented, R&D focused, high value-added projects, which assist in reducing foreign dependency.
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