Regole europee, cuneo fiscale e trappola della produttività

The Italian Budgetary Plan 2014-2016 prepared by the Italian Government and approved by the Parliament is finalized to fulfil the constraints of the European Treaties, rather than income and employment growth goals. The European Commission, however, decided not to give the “green light”, because fiscal consolidation is not guaranteed both in short and medium term. The Italian government proposal is considered unsatisfactory by European technocrats, as inconsistent with the budgetary rigour and “expansive austerity” policy. The proposal does not even satisfy the social partners, employer associations and trade unions, who ask for not symbolic actions for reducing the tax wedge, thus for supporting growth and employment. Are we sure though that the commitment of all available resources in the direction of tax wedge reduction is the best policy for driving Italy out of the crisis, as the country has been trapped in productivity stagnation for twenty years