The political crisis triggered by the M5S in the height of summer also risks slowing down a series of measures at work, starting with that “social pact” mentioned several times by Mario Draghi. We are talking about the cut of the tax-contributory wedge, which after years of announcements, now seemed to be channeled towards a real realization.
But we are also talking about the overall relaunch of active labor policies, with the Ministry of Labor still having to clarify various implementation aspects, starting with the role of private individuals and inter-professional funds. Then there is the open discussion on a strengthening of the “obvious” cig (given the consequences of the war in Ukraine) and the take-off of the dual system. But let’s go in order.
Wedge cut
After the pressure of the social partners and the okay of practically the whole parliamentary arc, the Draghi government has decided, in the next budget law, to act (finally) on the cut in the cost of labor. According to the first simulations of the Mef technicians, 4-5 billion would be on the table for the operation at the moment; and it is assumed that the intervention will be concentrated on the medium-low income brackets, therefore under 35 thousand euros, to make the measure a little more tangible in the paycheck.
After all, the need to reduce the tax-contributory wedge is now a shared urgency, also because, as the OECD recently recalled, it has reached unsustainable peaks: we are at 46.5%, close to 50%, if we add social charges and contributions. We are at 60%, as anticipated by this newspaper, if we refer to the wage bill. In short, a ballast that is now unsustainable (and indefensible). It is no coincidence that Confindustria’s strong proposal is a structural intervention on the 16 billion wedge that would have the advantage of putting up to 35 thousand euros of income of 1,223 euros into the pockets of workers, that is to say an extra month’s salary.
The debate on minimum wages and contracts
The government crisis, in fact, also slows down the debate on the minimum wage and contracts. In the last meeting with the social partners, the Draghi executive announced its intention to intervene to increase wages. The working hypothesis would foresee the extension of the Tec, overall economic treatment, of the leading contracts of the individual production sectors. A divisive proposal, and which, according to some experts, would dismantle our collective bargaining system, which Europe itself has recently cited as best practice.