One billion euros is sought. The government is seeking new protections for the Maneuver. We need a center-right summit at the Palazzo Chigi to find political agreement on five “changes” to the budget law. Short term rentals, tax credits, ISEEs on first homes, dividends and funding for the police. But coverage problems still remain. And we are looking back to banks to meet their needs: there has been an increase in IRAPs at large banks and insurance companies from 2 to 2.5 percent.
MEETING
The majority leaders meet at noon. Giorgia Meloni chaired the summit together with deputies Matteo Salvini and Antonio Tajani, Maurizio Lupi, the leaders of the group in the Senate, Giancarlo Giorgetti and deputy minister at MEF Maurizio Leo, minister Luca Ciriani. There is general agreement on some but substantial changes. The first is the short-term rental tax: there will be no proposed increase to 26 percent, it will remain at 21. And more. The ISEE exemption for first homes will be extended to 120 thousand euros, thereby increasing the cadastral value for large cities. Although the government wants to relax restrictions on corporate coupons: the participation threshold drops from 10 to 5 percent and there will be an obligation to maintain participation for at least three years. And if the crackdown on tax credits is completely lifted, the majority will close ranks and seek additional resources to finance the police: at least 50 million euros more.
So far the general agreement. Achieved in a “wonderful atmosphere of sharing”, they announced from Palazzo Chigi in the evening. But the deal is still being written, as the hunt for funding has just begun. The five changes will cost around one billion euros. And only part of the coverage was identified by the leaders gathered at the conclave yesterday morning. About two hundred million should come from increased IRAPs for banks, insurance companies and financial holding companies. A convincing surprise Lega and Fratelli d’Italia but Forza Italia less convincing. Tajani was once again the one calling the shots. Before asking banks for extra sacrifices, “we need to talk to them, because we have already reached an agreement with them” warned Forza Italia supporters. Asked Leo and Giorgetti if there was room to exempt at least non-financial holding companies from tax increases, with additional funds from IRAP. Answer: no way, we will evaluate. Although the government’s intention remains firm to exclude small banks from the trap, which can only be required to pay overpayments. Ciriani himself guaranteed that dialogue with ABI and “all parties affected by the government’s actions” would occur. That means there is no lightning. It is said that the core of the problem is seeking protection. For changes approved yesterday and those that are still in process, such as the increase in publishing funds requested by the Azzurri. Only the short-term rental tax reduction to 21 percent can be “self-financed”, with the government’s decision to reduce the threshold for starting business activities from 6 to 4 or 3 properties. Other resources – around two hundred million euros – will come from tax increases on packages originating from non-EU countries and corporate capital gains. However, it is difficult to make money with the controversial tax on capital gains from gold investments. Leader of the Northern League group in the Senate Massimiliano Romeo restrained himself: «This is a very complex issue, new studies are needed…». Enough? No, that’s not enough. This is why center-right leaders asked Giorgetti and the Accounting Office to do the math. It’s all but impossible, that’s the warning Meloni gave to his allies and to the leaders of the group that must “hold” troops in the Senate between now and December 28, when the maneuver will get a final green light in the House, barring unforeseen circumstances. The party that will pay the price for a “modest” budget will be first and foremost the one the parties have installed in recent weeks. These range from tax abolition, which Salvini wants to extend to tax assessments, to the increase in minimum pensions advocated by Forza Italia and the cut in Rai’s license fees that the Northern League is still demanding. Giorgetti was very clear: the money was not there. To find it, there is only one path and it is always difficult to take for a government that has made a last resort in the legislature: raising taxes. The hypothesis is by no means excluded at this time.
MELON ALERT
It is urgent to provide additional funding, especially to finance measures that have particular electoral appeal. The security sector is one of the sectors that is in the government’s spotlight. The increase in the sector envisioned by center-right leaders amounts to at least fifty million. Another twenty million euros, agreed by those present, would for example be deducted from the coffers for the replacement of centre-right senators – initially 100 million – and earmarked for agents who work on the streets, in patrol cars, and therefore take greater risks than others. The input comes directly from Meloni. Who at that time issued a warning to his followers: there should be no impostors in Parliament. This means: center-right senators must allocate, in their respective amendments, their share (around 400 thousand euros) for “valuable interventions, for local authorities or recognized institutions”. Meloni provides several examples. It is better to save funds on the restoration of ancient buildings or closing small urban construction sites, than on a myriad of small “welfare” measures.
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