Wall Street Journal has touched a sore spot stressing to the world what we, locally at least, had had already written on this newspaper through a dozen articles. ‘Renzism government produces little NDP, less than what the Italian crisis would ever need and above all, too little as compared to the average of most countries in the EU whoare facing a crisis too. This year, the economic growth has been estimated still at zero comma, while Spain has already gained 2,5% and is pointing to achieve 3% and the UK of David Cameron will do even better. And so it’s the same old story with forecasts for 2016: +1,3% whih Reni’s government hopes to push to1,5%, while Rajoy’s government can afford the privilege of facing up to a difficult election campaign with a growth forecasted at 3%.
Why has Italy then, the only country in the eurozone-apart from Greece, that had granted itself the privilege of a technical governmet, led by Mario Monti, which could afford atypical decisions in a democracy which has benefitted from unique margins of manoevre, grow so little? And why couldn’t the smaller coalition government formations-in other words those that haven’t been voted in- like those of Letta and the preent Renzi-not be capable of boosting the economic growth-rate as Rajoy in Madrdid has achieved? The Italian problem is twofold. First of all, the reforms are always partial. The Spanish Job Act concerns the entire labour market, those of Renzi, only the newly hired employees as from March 2015 and does not include people in the public civil service. The Spanish spending review on public civil costs as well as state and regional spending is authentic, the Italian one is just a mix of slides ad new local taxes that compensate the cuts and transfers from the centre.
Then there is the more specific element on the Italian case which keeps our NDP chained to a zero comma growth: Italian capitalism remains the only one to have strong anti-capitalist genes which makes it unique in the eurozone. The entrepreneur is considered a dangerous individual who exploits the community; competitions creates disadvantageous situations for the most and should always be contaied giving life to corporations and monopolies often publici; taxation needs to be highbecause only the state can redistribute wealth across taxation.
In Italy, noone has ever happened to notice that even the German capitalism, the one pertaining to the social market economy, has evolved in the diretion of internalising the most fierce competition in order to favour the well-being of its consumers, employment and growth. Today only the Italian capitalism is still anti-market; so it will never grow and the devaluation of the Euro, the collapse of oil and the QE of the BCE can only make it float. For this reason, Renzi should go beyond the slides and and clearly inform the markets on what type of capitalist target model he has in mind, only then can the NDP grow again.
Translation provided by Marina Stronati