Icona di facebookIcona di InstragramIcona del social X

State aid: really useful?

4 May 2021
- Di
Ginanneschi
Tempo di lettura: 3 minuti

STATE AID - May 2021: the economic crisis due to the Covid-19 pandemic is rampant globally still affecting "the beautiful country" that is trying with all its strength to rise again. We have an economic expert on the sensitive issue of state aid and subsidies: Marco Ginanneschi.

State aid: really useful?

Economic policies over time have impacts often very different from those advocated by legislative interventions because the variables are many and the timing and responses of the market are not predictable, with the event, very often, distortive effects that can drastically reduce the expected benefits.

The crux of the final months of the pandemic, between "powers of fire" and the endless versions of "decrees refreshments", in addition to the frantic race to update in real time, at the expense of professionals in the sector and businesses, is creating the desired effects to reduce damage to the real economy?

The challenge has just begun: will we be able to use more than EUR 220 billion in six years in an appropriate and transparent manner, when we have spent half as much as EUR 48 billion in the last seven years of the 2014-2020 programming period?

The productive world seems to sink more and more in the quicksand of the bureaucracy that prolongs the times of wait of the subsidies, until now seen like the only breath of oxygen for the business survival. We probably forget too often that for the company survival is not enough, as the "going concern" that should have a solid foundation to project development and growth.

State aid: emergency measures

The perspective vision is flattened, Most entrepreneurs are forced to chase the emergency measures that are causing the head to bend on the primary needs and contingent taking away the space necessary for the planning of a strategy even only in the medium term.

State aid, which is given in a rainy and confusing manner, would seem to prolong the agonies already begun in the pre-covid era, since our memory, too often short-term, seems to have overshadowed the fact that we had almost a decade of growth around zero of our GDP.

If we look at the spending capacity of European funds we find the real answer: Italy, in the twenty-year period that has been taken into consideration, is the penultimate place in Europe on the spending capacity of the funds allocated and, in addition, all too often used on projects that have not led to expected economic benefits in the medium to long term.

If the objective is survival, then the measures adopted can be acceptable, but if we have the ability to look at a different horizon, then we need to relaunch energy infrastructure, technological development, protection of the environment and, above all, policies for adequate social protection.

These are all macro-themes present in the document presented in the EU for the Next Generation funds that could cause a "second renaissance" in Italy.

The challenge has just begun: will we be able to use more than EUR 220 billion in six years in an appropriate and transparent manner, when we have spent half as much as EUR 48 billion in the last seven years of the 2014-2020 programming period?

Key word: De-bureaucratisation

The response times of the Pas must be cut back quickly through more streamlined and transparent procedures, including a revision of the code of public contracts, which should at least be closer to criteria for the functioning of other more virtuous European countries.

Why does Italy have a GDP growth of less than 8% from 1999 to 2019, when Spain, France, England and Germany reached a growth of between 32 and 43%?

If we look at the spending capacity of European funds we find the real answer: Italy, in the twenty-year period that has been taken into consideration, is the penultimate place in Europe on the spending capacity of the funds allocated and, in addition, all too often used on projects that have not led to expected economic benefits in the medium to long term.

The high road is therefore an effective programming involving stakeholders on the territory through short and incisive stages of public consultation, a careful check on the progress of projects and finally a timely reporting of the resources used, otherwise we risk having a powerful offscreen in hand without the instructions for use for driving. In order not to skid at the first curve, this period of preparation will be essential to test all the skills we can put in the field.

We can still win the game of our future!For more information about the world of work, click here

Tags:
Icona di facebookIcona di InstragramIcona del social X
Copyright @Finanze Investimenti Criptovalute