Italian Prime Minister has set the date for the constitutional referendum as late as practically possibly. It will be held on December 4. The issue is the perfect bicameralism that gives as much power to the Senate as the Chamber of Deputies.
In the aftermath of the Brexit tensions, Italy is defying Brussels to bail out troubled banks and preparing for constitutional referendum in October. If Prime Minister Matteo Renzi fails to achieve adequate support, economic destabilization will shift from the UK to Italy – which could pave way to the rise of anti-establishment left or right.
The European Court of Justice upheld the principle of making creditors bear the burden for investment in banks that sour before government funds could be used. Italian banks are particularly sensitive to the ruling, which cannot be appealed because the European Banking Authority and European Central Bank stress tests on July 29 are expected to show that some Italian banks are under-capitalized.
Due to anemic growth and an unstable world economy, Italy’s small business sector woes grow worse, according to The Wall Street Journal. Small businesses are vital to Italy’s economy, and the European Union (EU) relies on Italy and other EU nations to strengthen Eurozone GDP. The Italian prime minister has yet to instill policies that would bolster the economy.
Italian Prime Minister, Matteo Renzi, attempts to reach a deal with the European Commission over the 2016 budget before the economy tumbles further, according to Reuters. Italy faces a barrage of economic setbacks, including a shortage of revenue and a postponement of privatization initiatives. The government expected 1.6-percent growth for 2016, but such a goal seems unattainable now.
Italy’s third successive unelected Prime Minister is pushing through electoral reforms that make for stronger government’s going forward. There are two elements of the reform.
Previously, Italy was proud of its “perfect bicameralism”, where Chamber of Deputies and the Senate shared power to initiate and block legislation. The political interests of the last elected Prime Minister, Berlusconi, shaped the format. Current Prime Minister Renzi seeks to emasculate the Senate, cutting its power to obstruct.
For some time now, the tax system in Italy has been growing increasingly inefficient and costly. Since the economic crisis in the country, the burden of this poor system has fallen on business owners and workers, according to a new study. According to a report offered by ‘World Bank Doing Business’, the economic crisis response in Italy has severely impacted workers, instead of focusing on public spending cuts. The study underlined that, in relation to taxes, Italy has 138th easiest taxes to pay, in comparison to France at number 52, and the UK at 14th.
Italy fell into a troublesome triple-dip recession during the summer of 2014, facing similar challenges to those in California, New York and Illinois due to high taxes and job killing regulations. After a collapse in 2008-9, the economy began to stagnate, travelling consistently back towards recession in 2011 and struggling to recover. The economic minister at the time, Giulio Tremonti, suggested that everyone should simply wait and see, until that philosophy killed the government.
Italy has officially turned into a recession as GDP shrank 0.2% in the second quarter after shrinking 0.1% in the first quarter of 2014. The contraction has surprised analysts, who were expecting economic expansion in the EU state amid a broader continent-wide recovery.
Instead of recovery, the euro’s third-largest economy has released data indicating that the currency’s broader economy may be threatened by an unexpected downturn, which may in turn impact other nations within the European Union.
In a move to crackdown on government waste and boost revenue, Italian authorities are putting 151 state-owned luxury cars up for sale on popular online auction site eBay.
The government first started listing cars last week, reported CNBC, which included models from BMW, Alfa Romeo, and Lancia.
