Home » Franco (Economy): “GDP will grow by over 5.8%. But it is time for responsibility and major reforms”

Franco (Economy): “GDP will grow by over 5.8%. But it is time for responsibility and major reforms”

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CERNOBBIO– Italy is traveling towards unprecedented GDP growth. In 2021, our Gross Domestic Product is set to exceed 5.8 per cent (latest forecast by the Parliamentary Budget Office). Daniele Franco , Minister of Economy, brings the good nobella to the Ambrosetti Forum in Cernobbio. And it is not the only one.

Such overwhelming growth in GDP – probably close to 6% – will bring with it a reduction in both the deficit (which was feared at 11.8 per cent) and our enormous public debt (expected at 159.8%). But these short-term results could be illusory if the country misses the appointment with the structural reforms that Europe is demanding, in exchange for the contributions of the NRP.

Resumed, Istat confirms “sustained growth” in the second quarter: GDP + 2.7%. Accelerate inflation


Franco explains that it is time to “route the economy on a growth pathstructurally broader than in the past “. The minister’s words are addressed to the allies of the national unity government who could claim expenses on expenses, with the next Maneuver, given the unprecedented GDP rush and the copious checks arriving from Brussels. Franco instead thinks to a maneuver of responsibility, which sets long-term strategic objectives.

Franco also addresses the industrialists, who listen to him in Cernobbio, the trade unions and ultimately all Italians. “We need one choral effort “, he explains, because otherwise the NRP will not be enough to make up for the delays we accuse with respect to other European economies, which are more virtuous and dynamic. Strong delays, for example on the employment front.

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The employment rate in 2019 it was 58% – recalls the Minister of Economy – therefore about ten points below the European average. The same investments – public and private – are about four points below the Eurozone average. It is true: GDP growth is pushing investments a lot, which could reach 20 percent of GDP in the year. The problem, here too, is to ensure “that the process continues for a long time”.

Franco’s route is clear, therefore:
– it will be necessary to return to a “moderate budget policy”, which ensures systematic “primary surpluses”;
– need one tax reform(expected in the Council of Ministers by September) which encourages companies to hire;
– we need a competition law capable of freeing companies from ties and chains, pushing them to take risks.

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