About public assets selling in Italy …

on .

Written by Dario Ruggiero (June 2012)
The short, middle and long term objectives of Italian public assets (Real Estates and financial assets), that Monti’s government and the Bank of Italy are going to prepare, aims at reducing Italian public debt by 20 billion euro by this year and 200 billion euro during the next 5 years; the target is to reach as soon as possible a Gross domestic debt / Gross domestic product ratio of 110 %.
Well, we have nothing against this objective; Italian public debt must be reduced! But is this the best and “fairest” way to do it? In my opinion “no”! In this way, States (and so the common richness) become poorer, while the richest private citizens remain rich. Finally, once again, but in a less clear way, are the lower classes who finance the reduction of the public debt … This methodology of reducing Italian public debt fails in identifying the “true debtor”! substantially this methodology lacks in the justice principle. (but Monti is not the real problem; the real problem is the Italian politicians who don’t allow Monti to act freely)

Let’s go back for a while …; since 70s, Italian Public Debt has strongly grown; Thanks to this blowing process, some (not few) people have become rich benefiting from expansionary fiscal policies in the past years (in poor words, these people have become rich in the periods of abundance). So they are the real Italian debtor and they must contribute more to the Italian Public debt reduction; this is the fairest way to delete the debts that are suffocating Italy.

In Italy, June was the month were the first part of the IMU (Unified Municipal Tax) must have been paid; some people paid IMU for 6-7-10 Real Estates. Italy is a country with strong differences between rich and poor families. There are families owning 10 Houses and families made by 10 people or more living in houses not bigger than 50 meters squares. Adding up an impoverishing Welfare State, the way decided by the government in reducing the Italian Public Debt is not the fairest one; I don’t know, unless there will be some changes, how long the social fabric may go on without breaking.

In these words we have explained why, a tax on the biggest properties must be done in order to reduce the Italian public debt instead of reducing the State’s properties or reducing the living standards of the poorest households. It is not important if such kind of tax will be done now or in future, but it must be done and planned from now on.

This article by Dario Ruggiero
is licensed under a Creative Commons Attribuzione - Non commerciale - Non opere derivate 3.0 Italia License

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