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Less taxes for those who hire and give work in the South. The 30% cut in contributions to companies operating in the South begins today: they will pay less contributions for all their employees and for those who want to hire in the next three months. In fact, the so-called “Advantage Tax” comes into force, which reduces the tax burden of all workers by one third. The measure, inserted in the August decree, concerns private entrepreneurs “whose workplace – according to the law passed in midsummer – is located in regions that in 2018 had a per capita gross domestic product lower than 75 percent of the Average EU27 or in any case between 75 and 90 percent, and an employment rate below the national average. ”These are Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria and Sardinia, where some 3 million private employees.
THE PAINTING
On the plate, the government has put a billion euros and the contribution cut excludes awards and contributions from Inail. That of facilitated taxation – explain the sources dealing with the dossier – will have to be a first step in the broader framework of government policies in the coming months in favor of the South. The plan of the Minister of the South, Peppe Provenzano, in fact foresees that the deduction will continue for ten years, until 2029, with a decreasing relief (20% from 2026, 10% in the last two years). The question is how to finance the operation, given that a quarter of the wedge cut thus devised costs, in fact, a billion euros and for a whole year more than 4 billion are needed.
THE EVALUATIONS
The minister points to the European funds from the recovery fund and the cohesion funds from the next multi-annual budget, but obviously the go-ahead from Brussels is needed, with which close talks are being held. According to Provenzano’s assessments, for the 2021-2027 programming cycle, also considering that 34% of the Recovery Fund aid should go to the South, there should be one point and a half of GDP per year of additional significant investments in the South . . In addition, the ministry estimates that the measure will have a significant impact on 500,000 companies, of which 90% have fewer than ten employees. The reduction in contributions will initially benefit from the European Commission’s provisional framework on state aid. And, as mentioned, the government is entering into a dialogue with the European Commission to extend the measure until 2029.
THE PROPOSAL
From the first conversations with Brussels, the willingness to consider the proposal emerged thanks to its inclusion in the broader reform framework envisaged by the South Plan 2030. In fact, it is essential that this type of support is long-lasting, and not just temporary, to enable more effective planning than investment decisions and business reorganization.
OPPORTUNITIES
In fact, in the South, the Coronavirus crisis hits a productive system that has not yet recovered what was lost during the Great Recession, aggravating the structural lack of job opportunities and the wide gaps with the rest of the country and Europe. In the current year, explains the Provenzano minister, “the work will be greatly affected, especially in the South.”
DEAR
The latest estimates released by Svimez indicate a decline in employment of around 6% in the area, compared to 3.5% in the Center-North. These are the first signs of the territorial asymmetry with which, by repeating the experience of the previous crisis, the economic and social repercussions will occur. Furthermore, the unprecedented collapse of employment this year must be prevented from being followed in the coming years by the risk of a recovery in unemployment in the southern regions, which would undermine the ability to restart a strong, long-lasting and sustainable development process. sustainable.
Last update: 06:45
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