Antonio Di Pietro - Cambiare l’Italia

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12 January 2010

If only I were prejudiced

I am giving it my all, when I read the agencies I take a deep breath and I turn to that part of myself that knows this Majority, that will never change its nature, and I think: “perhaps I’m prejudiced?”.

If only I were prejudiced when I think that Berlusconi cannot allow himself to do a “real” tax reform given the 10 billion a month of Public Debt in 2009.

If only I were prejudiced when I think that of tax reforms, of tax rates that are simplified, reduced, light, simple, equitable, broad, narrow, tall and thin he has declared them in all flavours since 1994, without ever having brought them into reality.

If only I were prejudiced when I think that tax reform is the honey on the teaspoon for the castor oil of the “short trial” and the “legitimate impediment”.

If only I were prejudiced when I associate the sound of the reformist trumpet round about the time of the regional elections safe from hearing the tambourine-playing of the executioner, once the urns have closed, to announce new cuts in pensions, the raising of the tax rates, new stamp duties, coupons, little taxes, dictated by a dutiful rigour just for as long as the crisis lasts.

If only I were prejudiced but I am ready to take a bet that I’ll first be in Parliament voting on the umpteenth confidence vote for an “ad personas ” law or a law that is useful for the club of the government unpunishables then, possibly, in the middle of a forest of “ifs and buts”: tax reform.

And unfortunately I have the premonition (or the certainty) that it will be the raw reality with which a real tax reform can be expected in the year 2010.

Posted by Antonio Di Pietro in Economy
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3 January 2010

2010 has started very badly

I ended 2009 by expressing the hope that Italy would once again become a Republic based on work. I didn’t even get the chance to wish the more than a million unemployed a great 2010 before the government’s next provocation, namely the need to cancel no less than article 1 of the Constitution, the very one that that states that Italy is a Republic based on work. From a political perspective, therefore, 2010 is already forcing us to dig up the recently buried hatchet of war to use against this bunch of revolutionaries that wants to overturn the Constitution, riding roughshod over the statements made by the Head of State, which were perhaps a little imprudent given the kind of people we’re dealing with here. Italy needs reforms that have been discussed in Parliament and nowhere else, taking as much time as necessary for approval, probably far in excess of Silvio Berlusconi’s trial appointments. The fact remains that the Justice System is not one of the priorities on the real political agenda. As I have said before, what the Justice System really needs are the means and the tools required to speed up the trials and improve its efficiency, not to be controlled and overseen by the political class. I believe, instead, that the priority reforms should be those aimed at re-launching the economy and job creation and I would want these to be addressed not only by means of political discussion but also public consultation. Translated for the politicians, this would mean asking Brunetta to reform the public service with the collaboration of the very people he has labelled as "slackers", o to get Ms. Gelmini to work on the education system by listening to the teachers and discussing the reforms with all the educational institutions. But how can we expect a herd of elephants to go through a glassware shop without breaking a single glass? In his year-end address, the State President "cleared the way for these pirates”, who will undoubtedly now fully exploit the statements made by the very individual that represents the institutions to destroy and humiliate those very same institutions. The proof of the pudding has already been delivered, because other than calling for dialogue with the opposition, this majority has never and will never waver from its main objective, which is to obtain approval, as quickly as possible, for the “ad personam” laws that will ensure impunity for the Prime Minister.

Posted by Antonio Di Pietro in Economy
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18 December 2009

State launderer, State receiver

I’m publishing the video and the text of my speech in the Chamber of Deputies on the confidence vote on the Finance Bill.

"Signor President, the group of Italia dei Valori is expressing the most decisive opposition to the 2010 Finance Bill. We are doing this because of its contents and because of the method. Because of its content we are opposed both because we believe that this law is iniquitous, and because we believe that it is criminogenic because the source of the money expected to be coming in to balance the public accounts is more or less exclusively that targeted by the infamous Fiscal Shield. That is to say, with a State kickback, because it’s a matter of kickbacks, at 4 per cent, as was done once upon a time, in the First Republic. Kickbacks that this government receives from the tax dodgers, but not only from the tax dodgers: even from those who have been corrupted and those who corrupt, from the drug merchants, from the kidnappers, from the fraudsters, because the colour of money is always the same, because money has no smell, because even when it comes back from abroad, it’s always money of illicit provenance, because the acceptable money could already come back with no problems. It is money of illicit provenance, of any illicit provenance, even of tax dodging. Basically, it’s money hidden abroad and in the tax havens as swag, a bit like even the President of the Council has done, who, as regards tax dodging, as regards the concealment of illicit funds abroad has never been and is still second to none.
In a normal country, in a State based on the rule of law, the proceeds of crime should be pursued and confiscated and not put back into the hands of the delinquents who don’t put them back into circulation in a legal operation, but will always keep them in their strong boxes; paying the kickback, they have done State recycling. In fact, more than that, they have blackmailed the State, that now has to yield to such an immoral compromise to get money in a shoddy way and without respecting those who however have always and in every circumstance paid their taxes. So basically, State launderer, State receiver: this is the State of the Berlusconi Government.
However, I am referring to all those people who, like the workers and the pensioners who pay taxes, now are seeing themselves treated, exactly, in an unjust way. But I’m also referring to the many professionals, to the accountants, to the respectable entrepreneurs who now, really because of this track, of this double track installed by the Berlusconi Government, find themselves fighting with unmatched weapons because there are competitors who do not respect the rules of the game, who do not respect the rules of the market and thus who always win.

...

Posted by Antonio Di Pietro in Economy
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10 December 2009

The finance law of social inequality

This is the finance law of shame and of destitution. The government no longer has a cent and has decided to come and steal from the pension pot.

The “Tfr” { lump sum paid at the end of employment } was stolen by the Prodi government from the companies that used it as an investment pot for development, now Berlusconi is stealing it from the Istituto Nazionale di Previdenza Sociale {National Institute for Social Security} .

They steal the Tfr money of the workers to sort out the speculators and the schemers for whom there is the fiscal shield.

The Public Debt has reached the threshold of 1,800 billion euro, growing by 10 billion euro a month: a sad record for this government. The income has crashed under the blows of the crisis, never recognized nor helped.

On the expenditure side there has been not one cut consistent with the inefficiencies of the machinery of government, the parties have not renounced any privilege. The provinces and their redundant administrative machinery are still there, the regulation to suppress them, presented by Italia dei Valori, has been shelved by the government and by the PD.

The year 2009 has produced poverty and social inequality: more than 100 thousand precarious workers in schools have been sent home, together with a million people without jobs and an imprecise number of companies that have closed up shop. For them there’s no mention in the finance law of social inequality.

There has even been the cancellation of 30 million euro for the reconstruction of the houses destroyed in Viareggio following the rail catastrophe of 29 June causing 20 deaths.

In compensation up pop the regulations aimed at providing an amnesty for the unauthorized construction by the confiscation of property by the public administration and its renting out to the very same people in a sort of subletting by the State. The same for the goods confiscated from the mafia that can be bought back by simply making use of a front man.

With this finance bill, the State goes stealing from the pockets of the pensioners, gives a kick up the backside to those who are or are about to fall into disaster, and it throws itself into competition with the camorra, the mafia and the 'Ndrangheta by approving a series of regulations that are aimed at inserting it firmly into the value chain of the mafias.

So basically, the government is closing its eyes to the business of the gangland without noticing that the country is sliding into default.

A situation, that of bankruptcy, that would be added like a flash of lightning to a clear sky in those homes of Italians distracted by the regime information with the murder trial of Meredith Kercher and the exploits of the President of the Council. But the numbers are not a matter of opinion, like the declarations of a turncoat, and they point directly to the grim predictions made by the finance company JP Morgan in an article dated 6 March this year, in which Italy appeared as the country the most exposed to the risk of bankruptcy, straight after Greece and Ireland.

What is the government waiting for to turn things around? Instead of thinking of nuclear, of the Messina Bridge and of all those investments of restricted interest, if not based on private enterprise, let it start to deal with the citizens!

Posted by Antonio Di Pietro in Economy
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25 November 2009

Agricultural in extinction

Without immediate and solid interventions that have to be inserted into the current finance bill that is currently being discussed in the Lower House, next year more than 100 thousand agricultural enterprises will be forced to cease trading.

Already this year, more than 30 thousand companies have closed up shop. It would be an unprecedented collapse with economic damage: ”more than 10 billion euro” are the words mixed with anger and desperation from Giuseppe Politi, the president of the CIA - Confederazione italiana agricoltori {Confederation of Italian Agriculturists}.

Today a CIA delegation demonstrated at Montecitorio. I was there.

Text of the video

Italia dei Valori is on the side of the workers, on the side of those who no longer have work and on the side of those who cannot find work. We are on the side of the most vulnerable people: it’s a matter of social justice. They say that I deal with justice and that I am a justicialist. No. I deal with social justice. Behind me there are agriculturalists, who are working “at a loss” without counting the time that they put into their work, agriculturalists to whom this finance bill gives not a euro of support and in incentives. A finance bill that thinks about the bridge over the Straits of Messina and of the money to do motorways in Libya, a finance bill that doesn’t think about giving the possibility to agriculturalists to at least break even.

The money that consumers spend to fill up the table with produce is inversely proportional to the money that the agriculturalists spend to produce it. For every product that you find at two euros on your table, the agriculturalist gets 15 cents, and at times 12 cents. As an example, a hundred kilograms of grapes costs the agriculturalist twenty euros, while you pay 2 or 3 euros a kilo at the stall. What do I mean by this? When you pay 20 euro you are paying an exaggerated figure in relation to the sum that the agriculturalists get for the product.

We of Italia dei Valori are giving our solidarity to this demonstration and in Parliament we are doing what is possible to modify this finance law, so that it gives more space to the agriculturalists and to agriculture as a whole.

Posted by Antonio Di Pietro in Economy
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16 October 2009

Wild indebtedness

On 12 October, the Head of State raised the alarm about the public debt being out of control. Bankitalia is hot on its heels and defines it as a record with a value of 1,757 billion euro, that is an extra 100 billion in relation to the same period in 2008. The sea of public debt is “in a drought”. Even the main flow of funds into it is drying up: the tax revenue in the first few months of 2009 has collapsed by 2.5% in relation to the same period in 2008 and it will continue to collapse for two reasons.
Reason number one: companies are closing down and are reducing their turnover, the roads are filling up with unemployed people and so the tax revenue is going down. Reason number two: the Fiscal Shield, the Italian one, has been the most enormous incentive to tax dodging that will produce devastating effects for the tax payers: those who were paying taxes and who were not thinking of tax dodging, since 2 October they are working out with their accountant how to adjust to the times. That would just leave the employees of the public and private sectors who are paying up to the final cent.
But if the flow of money coming in is interrupted, even those who administer the value will run out of oxygen, and the State machinery will stop. The economy of a country is not complex even though they want you to believe it is.

If we connect these signals to Draghi’s appeal on pensionable age and to the thinking of the industrialists and the representatives of the workers who give the label of “insufficient”, to the recovery of the economy, the measures taken by the government, we can come to a conclusion all together: the money is running out and to keep the government afloat, they are wildly getting the citizens into debt. Why are we in this situation? Because the politicians are discussing the personal problems of Silvio Berlusconi, “good” at dodging taxes and “just” with the crafty ones.
What will be the effects of this negligence? They will be devastating and they will arrive unexpected and they will leave on the streets many citizens who are unaware, even those who right now are dreaming of the “Itaglia dei berluscones”.

Three million people are below the poverty line In Italy, but this is just a partial figure: how many people are on a knife edge at the end of the month? And how many, if there were to be a tiny unforeseen happening in their lives, would be sliding under a bridge or going along to the soup kitchens run by Caritas?

5,6,7,10 million? Here we are talking of a figure that is between 10% and 15% of the population who are at serious risk of not being able to support themselves, a figure that would make Obama blanche, as Berlusconi would say. A risk that the government has tackled with the “Social Card” and with truncheons at the gates of the factories that are closing down.
The Ministry of the Economy knows these figures, and it knows that they are also prudent estimates, but it is “throwing a glass of water onto a forest in flames” instead of “calling the fire brigade” and it will be an accomplice of this silence if the situation gets worse in the next few months.

Posted by Antonio Di Pietro in Economy
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12 October 2009

Abolition of provinces: who has betrayed and who will betray

The overall number of the administrators and the elected representatives in the territorial bodies of the provinces amounts to more than 4,000 workers with 2,900 councillors, about 50 presidents and vice presidents, about 100 leaders of cabinets, and more than 900 cabinet members. The annual cost just of salaries for this “army” of elected representatives is more than 50 million euro while just the running costs of the more than one hundred Italian provinces is round about 10 billion euro a year.

The party leaders, of the Centre Left (as they define themselves), in the election campaign and in the TV broadcasts that followed, declared that they wanted to abolish the provinces.

They know that the Italians see them as a superstructures based on clientelism that create obstacles to the administration of the towns that is already detailed, an enormous stratification of bureaucracy that is useful to maintain itself but that does not help to speed up the activity.

Italia dei Valori is today taking a draft law to the Lower House, to abolish the provinces. This is being presented in spite of the contrary opinion of the Committee of Constitutional Affairs, to which the discussion was entrusted and whose composition I am publishing below.

Italia dei Valori declared its intention to abolish the provinces, finding itself to be in opposition to the PDL and the Lega and even the PD with 16 names of shame of people who hide behind “distinctions between time frames and methods” of the proposal. PD and PDL are by now different expressions of the very same political attitude that is chasing power, whether it is local or central, made up of mess-ups and armchairs to be occupied. According to them, the provinces, are part of this power and this clientelism and have to be defended even at the expense of lying to the voters.

A treat for readers: in the Commission, among the ranks of the PDL, as chance would have it, there’s the name of the honourable Calabria Annagrazia, who is substituting him, himself, the clown Silvio, that one who on Porta a Porta glosses: “away with the provinces”, but in the commission he is ditching the law.

Where is the press? Where are the TV News programmes? The citizens know nothing about this great big bipartisan deception at their expense. Where is the freedom of information of 3 October to unmask these liars who are muddying politics?
Where are you free information? It is you who are the look-outs that cover these politicians, while they are kidnapping the country and deceiving the citizens and to you goes all my condemnation in as much as the others are behaving according to their dishonest nature.

It doesn’t matter. We will do it ourselves, as we have always done on the Internet: today (from around 5:00pm) and tomorrow (from about 3:00pm) I will deliver via live streaming, the interventions, the amendments, and the voting on the draft law for the abolition of the provinces. That’s assuming that tomorrow, to cut things short, there’s no “Suspension”, that is the request to archive the proposal without even discussing it.

You citizens, who get information for yourselves via the Internet, you will have the opportunity to listen and to weigh things up, name by name, to see the contradictions and the falseness of those who express themselves against this draft law, perhaps time-wasting by using beautiful “political jargon”, in spite of the election promises that those same characters have made in the last two years.

I’m publishing the names of all the members of the Committee of Constitutional Affairs of the Lower House:

ITALIA DEI VALORI (2 members): FAVIA David (leader of the group), PISICCHIO Pino.

LEGA NORD PADANIA (5 members): DAL LAGO Manuela, DUSSIN Luciano (leader of the group), PASTORE Maria Piera, VANALLI Pierguido, VOLPI Raffaele.

MIXED (1 member): ZELLER Karl (LINGUISTIC MINORITIES) (leader of the group).

PARTITO DEMOCRATICO (16 members): AMICI Sesa (leader of the group), BORDO Michele, BRESSA Gianclaudio, D'ANTONA Olga, FERRARI Pierangelo, FONTANELLI Paolo, GIOVANELLI Oriano, LANZILLOTTA Linda, LO MORO Doris, MINNITI Marco, NACCARATO Alessandro, PICCOLO Salvatore, POLLASTRINI Barbara, TURCO Maurizio, VASSALLO Salvatore, ZACCARIA Roberto (Vice President).

POPOLO DELLA LIBERTA' (PDL)(20 members): BERNINI BOVICELLI Anna Maria, BERTOLINI Isabella, BIANCONI Maurizio, BOCCHINO Italo, BRUNO Donato (President), CALABRIA Annagrazia (in substitution for the president of the Council BERLUSCONI Silvio), CALDERISI Giuseppe (leader of the group), CICCHITTO Fabrizio, CRISTALDI Nicolo', DE GIROLAMO Nunzia, DISTASO Antonio, LA LOGGIA Enrico, LAFFRANCO Pietro, LORENZIN Beatrice, ORSINI Andrea, PECORELLA Gaetano, SANTELLI Jole (Vice President), SBAI Souad, STASI Maria Elena, STRACQUADANIO Giorgio Clelio.

UNIONE DI CENTRO (UDC) (3 members): MANNINO Calogero, MANTINI Pierluigi, TASSONE Mario (leader of the group).

Posted by Antonio Di Pietro in Economy
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18 August 2009

GDP: one collapse a month

The country’s Gross Domestic Product will fall by -4.8%. This is the new prediction for 2009.
In truth it is the umpteenth prediction of collapse that is seen by now every month, if not daily, and that denotes the incompetence of those making the estimates or the incapacity of those in the government who are handling the levers to manage the variables.
I am wondering what the credibility is to be talking of a breeze of a “tail wind” to get an increase of +0.6% in GDP for 2010 or of “recovery” in 2011 with an increase of 0.8%. The impression is that they are throwing the di and that the one with the di in their hands is a cheat.
We will close 2009 with a real GDP near to -8%. That’s the reality.

They say that up until now, Italy has felt the effect of the crisis less than the other western countries. That’s a pure illusion that can be put down to three main factors: on the one hand, there has been a provision of figures about the crisis and unemployment that up until now has been treated like the selection of the numbers for the Lotto. On the other hand, the banks have been saved but they however have not saved the companies. Finally the Italian public administration, an imposing machine with a few million employees, has off-loaded onto the public debt, onto services and onto a few thousand “precarious workers” the cost of the crisis.
It’s been the workers, and especially the “precarious workers” to have paid the highest price of the crisis, the workers of the private companies, of the industrial giants who have been laid off or simply thrown out onto the streets. Managing the arrest of the haemorrhaging of the public debt, an out of control “Golem” of 1.8 billion euro, is the litmus test of the economic recovery as well as being a necessary condition for being able to remain in Europe.
It has been estimated that to maintain the capacity to sustain the level of Italian pensions, the “real” growth of the economy, and thus of the GDP, must be +1.8%. If today we have a GDP of -4.8% (with an average value for 2008 to 2010 of -1.6%) some people have been wondering how we are paying out the pensions with a differential on the year of -6.6% (and the average for the three years of -3.4%)? It’s simple. By making use of the “Golem” of the public debt.

But the game is about to end, and it will end in autumn, when the alchemy of the government will not manage to explain to the citizens how it is that the copious companies are continuing to close and without a social security safety net for their employees, or how is it that the pensioners will see a downward revision of their pensions while they, the ones in government, at Palazzo Grazioli, are sipping champagne served by “escorts” dressed in black and thinking of the dialects, of Mediaset and how to screw the “Tricolore”.

Posted by Antonio Di Pietro in Economy
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10 August 2009

A zoo Majority

Berlusconi has decided to tackle the problem of employment with the “salary cages”. This is a solution in effect that appeals exclusively to the common sense of those who, while living in the Centre-North and having been at least once to the South, noticed that a plate of lentils costs 3 euro instead of 5. A demented solution to an important problem, the issue of salaries, that sees Italy in the bottom positions for income levels in Europe.
We have the lowest salaries of the Continent and we are bringing to the table a discussion of how to get them lower instead of increasing them: I would say that it is the most demented method to resolve the problem. If we were to talk of salary cages in Europe, they would take us for monkeys in the zoo and it is perhaps there, inside a cage, that should be the location for those people who have put forward these ideas and those who have accepted them.

Berlusconi is getting mixed up with cause and effect and he is finding a solution for the latter. Instead we have to ask ourselves: why is the cost of living lower in the South than in the North, if the costs of electricity, water and gas and State taxes are the same as in the rest of Italy?

The reality is that in the South, the cost of living is lower because there is an enormous shadow economy and because tax evasion is a phenomenon that costs as much as a Finance Bill and thus, if you don’t have a tax burden on your activity, you can sell at a lower cost and then in the end you can pay the “pizzo” to the camorra. Added to this explanation, there’s the enormous unemployment rate and loads of people who live with just one income in the family or with the help of parents: these are phenomena that also tend to reduce the cost of living because of the lower spending capacity of the citizens.

The rule of law must be returned to these lands, by waging a fierce war on tax evasion. In parallel, there should be incentives to attract foreign investment that has been always fleeing because of the lack of guarantees from the State. And to do this it is necessary to create a development model with tax incentives like those in Ireland and other western countries. But these are not to be confused with the tax dodging paradises that are so dear to the companies of the Premier.

In the South, salaries are already lower than in the North, because people are taken on without documents, and everyone knows this. And it is not by instigating a duality of the North against the South that this band of incompetents in the Government will silence the problem of unemployment that will overwhelm them this Autumn.

For the thousands of autumnal INNSEs in Lombardy, it will not be enough to have the miserable consolation that their colleagues in the South have had a paper reduction of salaries. In fact, it will be this reason that will bring the whole Peninsular together against this Majority zoo.

Posted by Antonio Di Pietro in Economy
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29 July 2009

Anti-crisis decree: the big lie

I am publishing my speech about the voting intentions on the anti-crisis decree presented today to the Lower House. Even this time, the government has not been given our “confidence”. Text of the speech

Signor President of the Council who is not present.

We are not absent.

We of Italia dei Valori are expressing all are opposition to the legal decree that you have put to us, in fact, that you have imposed on us with the vote of confidence.

The reasons for our opposition are many, but they are all united in the same logical argument: our aversion to your way of governing that is made up of crafty moves, of short-cuts, of inconsistency of action, of inconsistency of content, of making hopeless promises, of three card tricks with the same funds available. Funds that in one moment are allocated to one use and the next moment are allocated for something else, just to make us believe that you are sorting out everything and instead you are never resolving anything.

What is missing in this operation: support of the most vulnerable people and of the most under-developed areas.

What we were waiting for was an increase in the measures to support the income of the most vulnerable and the poorest.

We were waiting for the identification of some measures to support employees or employer-coordinated freelance workers , the precarious workers who have no right to any type of social security if their work is temporarily or permanently finished. Nothing!

The Bank of Italy estimates that there are still about 1,600,000 precarious workers and furthermore it reminds us that in the families where there are only “atypical” workers the incidence of poverty is estimated to be 47 per cent.

It is evident that flexible working is a necessity for the companies, but between one flexible job and another, there has to be the right to be supported, as happens for every other type of worker.

We were expecting the identification of new resources and instead it’s always the same resources that are used with an accounting transaction and moved from one account to another, with the worst aspect that resources are being taken away from investment funds to allocate them to current spending.

One outstanding example is the squandering, in fact the misappropriation of the resources of the FAS 2007-2013 (Fondo Aree Sottoutilizzate) {Fund for Underdeveloped Areas} that have been moved to other uses, like the payment of Alitalia debts, the useless pharaonic public works like the Bridge over the Straits of Messina, the fund for laid-off workers, the disposal of refuse and so on.

Another example is the much-talked-about “housing plan”. The money – 550 million – is the same money made available by the previous government (of which I was a part), and that now has been taken from public housing (that is used for the most needy people) to give incentives to the private sector of the speculators and the profiteers.

Yet another example is the as yet unresolved “issue of the south”, that shows the government’s limited interest in the South of the country not only as regards the allocation and the distribution of funds, but above all for what relates to the system of control.

Is this an example of bad controls or of connivance? The issue of Molise, where there is a staggering and unsustainable “financial gap” in the health system caused by the President of the Region, Michele Iorio. The government declares there is disorder and nominates a Commissioner, but in this position it appoints the very same man: Michele Iorio. It’s like saying: entrust the bank’s safe to the thief.

...

Posted by Antonio Di Pietro in Economy
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24 July 2009

The difference between an ultimatum and a pardon

We’re back to square one again. Yet another vote of confidence on the maxi-amendment to the anti-crisis package, which I would classify as a pardon for the Mafia, the Camorra and the very wealthy Italian families that have concealed many billions of Euro from the taxman by depositing them in Switzerland, the Caiman Islands and Luxemburg. The State will use this money laundering operation for the reconstruction of L'Aquila and for the funding of parastatal companies. The money will be “lent” to the State, which will pay a premium for its availability and so, not only will the mafia groups and tax evaders receive a pardon, but they will also be paid interest on their capital. The ones paying for all of this will once again be the Italian taxpayers, via the public debt, not the Government.

In order to appease the blissfully ignorant voters, the Government justified the pardon by claiming that they had emulated an operation undertaken by other Countries and, to make it more credible, given that Italy isn’t particularly so, they threw in the name of Barak Obama claiming that: “even Obama has done the same thing”. Not true. Obama did not issue a pardon. He went to UBS and demanded a list of names of the tax evaders. The people that repatriate capital held abroad shall be obliged to pay tax arrears and interest charges. In addition, the repatriation of capital invested abroad will not be anonymous as will be the case in Italy, but will require the revelation of the evaders’ names and surnames so that their activities can be monitored for years to come.

Obama’s operation is an “ultimatum”, while Berlusconi’s is a swindle carried out by someone who, on the one hand needs to bring in some small change because the State coffers are pretty much running on empty and on the other hand also needs to bring some dirty money back into the Country. An honest man cannot afford to sit at the gambling table with a bunch of professional swindlers because he will most certainly get fleeced.

I am calling on the Head of State to intervene because the governing majority has already made it patently clear that they really don’t give a damn for the rules of democracy nor for Parliament itself.

Anyone who thinks that you can stop a gang of thugs in the halls of Parliament today is clearly lacking any form of political savvy and sense of reality. If the decision was entirely up to the governing majority, Parliament would be dissolved as of tomorrow and replaced with a panel of servants doing the bidding of the King.

Appealing to the Head of State is essentially a last ditch attempt to stop the underhanded actions of this gang, obviously in the hope that the Head of State will not remain unmoved.

Posted by Antonio Di Pietro in Economy
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12 July 2009

State Recycling

A new “filthy law” is about to arrive. Even this time it is disguised with a veil of humanity, as happened when we had the Great Pardon, formally for the overcrowding of the prisons, in truth it was to allow the usual well-known guys to avoid prison. Now the new filthy law is justified by the need to find funds for the reconstruction of Abruzzo.
This time as well, the government has made use of the usual tried and tested expedient: let the news trickle out to see “what effect it has”, an expedient when one more time they have been "caught red-handed”.
We are referring to the draft of an amendment that the usual “Sherpa-parliamentarian” was due to present – if those of “La Repubblica” had not realised this and denounced it in time – following on from the anti-crisis decree that is currently being discussed in Parliament.

The amendment – in its present wording – that really exists, that comes from the Offices of the Ministry of the Economy and of which “La Repubblica” has a copy, sets out an amnesty with the “exclusion of the possibility of being punished” for those who, having money abroad, take action to bring it back into Italy and buy State Bonds (BOT and CCT).

At first sight, the regulation could seem to deceive because of its declared “happy ending”, but if you reflect for a minute, you can immediately see that we find ourselves with the umpteenth State Recycling, a crime that up until now is (was) punishable in accordance with article 648 bis of the criminal code, the substitution of money of illegal origin with other money, or in accordance with article 648 ter: the use of money of illegal origin in economic and financial activity.

Yes, well the only money deposited abroad that up until now could not be and cannot be brought back into Italy is the money of illegal origin, given that those who have legally bought or deposited profits abroad can calmly bring the money back into Italy.

On the other hand, the money that we are talking about that comes from tax evasion, false accounting, fraudulent bankruptcy, the issue of false invoices, or even worse like trafficking in drugs, in arms, in organs, in the exploitation of prostitution and similar things.

Basically, they are allowing the mafia people, the camorra people and the powerful ones in the ‘ndrangheta to bring back the money from illegal activity and to “launder” it. And not just that: they are allowing the usual “crafty ones” of the neighbourhood like Tanzi, like Cragnotti, and like Fiorani to do the same thing.

The odd naïve person will say: “but what is the government gaining by doing that?” It’s simple: among the possible “beneficiaries” of the decision, there are even the most powerful names in the Italian world of economics and finance, the Agnelli family, the Marcegaglia family, even Silvio Berlusconi himself (to understand this, you just have to read the Mills verdict and the declarations made in recent days by Mariella Agnelli or the judicial accounts of the Marcegaglia Group, the one of which the current President of the Confindustria is a member). It’s enough to have names like this to understand the reason that there is silence from most of the media , which often is owned by the obvious tax dodgers.

The result will, one more time, be to the detriment and a joke on the honest Italian citizens. While it is fooling the thousands of citizens who pay their taxes and don’t make it to the end of the month, we find that we have a State that negotiates with delinquents and uses iron fists against honest business people. Those who have earned legally, paying the relevant taxes down to the last cent, will once more seem like idiots and the next time will decide to adjust to the bad practice of the government: that of tax dodger and “money-launderer” of money of illegal origins.

Anyway, the amnesties are a constant with the Berlusconi government: it has already done one in 2001, and one in 2003. Now it wants to try again in 2009. Basically, to tackle the economic and financial necessities that he needs – instead of reducing waste and making everyone pay taxes – he favours the speculators and the tax dodgers in exchange for “State bribes” of 5%. That’s the amount of the tax that would be asked for from those who bring back their money from abroad with the famous “certificate of exclusion of responsibility”.

Not wanting to tackle the tax dodging, because of the DNA of its own master, the majority prefers to opt for State recycling, asking for a “public bribe” from the delinquents to invest in State bonds and in public companies.

This dirty money should not be condoned in a State based on the Rule of Law. The money should be impounded and confiscated and thus allocated for the reconstruction of l’Aquila.
I am appealing to the dignity of the people of l’Aquila that they refuse this dirty money, originating from tax dodgers, swindlers, and sellers of death, with drugs and weapons, and from unscrupulous pimps. Let them insist that the government puts forward true clean money for the reconstruction.

Having said this, I am sorry, signor President of the Republic Napolitano, but we of Italia dei Valori feel that we have the duty to turn down your appeal “after the respite for the G8, now it is necessary to have, in the interests of the country, a more civil climate and one that is more correct and constructive between the Government and the Opposition”. I don’t know what you find, but we find nothing that is “civil, correct and constructive” in this behaviour of the government and its parliamentary majority and for this reason, we will continue to act as an Opposition without half measures for anyone, whether they are inside or outside Parliament.

Posted by Antonio Di Pietro in Economy
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26 June 2009

The mirage of GDP at -5%

It is useless for Mario Draghi and Giulio Tremonti to continue fighting amongst themselves. I am prepared to bet that, at best, by the end of this year our GDP will hit –5% because, while some structural reforms have been implemented, they have had nothing to do with the economy.

These governors of ours have ravaged our Justice system, desecrated our Constitution, deligitimised our Parliament, eliminated any remaining ethics, cleared the way for tax evasion, encouraged the idea of the "survival of the fittest" and split our society, creating the kind of social gap only worthy of a third world country. Not satisfied with that, they then proceeded to eliminate information, take over the State’s frequencies, instill a fear of anyone that is different and subsidise organised crime.

In short, they have done everything in their power, in every conceivable field, other than the economy.

They have not made any significant moves to help businesses to limit retrenchments, or to help the unemployed and low-income families at least until the end of 2009, or to assist large families to get by, or to reduce taxes and the amounts of the advance payments on the next financial year’s tax liability, or for that matter made VAT payable on receipts rather than on total invoicing.

Is this Government even aware that the banks are sitting with around 50% of their business clients potentially facing insolvency? And are they even aware that anyone working with the Public Administration is destined to go under because they only get paid after six months?

All I can say to these people is: Come back down to earth, come down out of your ivory castles, like Palazzo Grazioli and your many Villa Certosas in which you enclose yourselves to enjoy your parties, and take a walk down in the streets, amongst the people, so that you can lay your fingers on this Country’s pulse.

Posted by Antonio Di Pietro in Economy
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17 June 2009

Awakenings

We are becoming like the screenplay of Oliver Sacks’ book, which was the basis for the film called “Awakenings”, or “Risvegli” in Italian, starring Robert De Niro and Robin Williams.

Until a year ago, yours truly was the only person that spoke about Mister 1% and his virtually free television network concessions, but between yesterday and today, “La Repubblica” has published two enlightening articles about the great business deals done by Mediaset and its Big Boss, none other than our Prime Minister.

As regards the world’s most patently visible conflict of interests, I have a number of observations to put to La Repubblica and any other great connoisseurs.

Why has the Anti-Trust done absolutely nothing about the Prime Minister’s veiled warning “not to give any money to those sections of the media that spread pessimism”, by which he means “those that hinder his propaganda activities”? In this case, in terms of free competition, his statement could be construed as market rigging since a number of the sections of the media in question, those that don’t belong to him, actually belong to certain companies that are listed on the stock exchange and are also his competitors.

Why is it that no previous majority in government has ever taken the trouble to introduce a law, or a decree for that matter, to raise the price of concessions on radio and television frequencies from the current 1% of turnover to 20% of turnover? Why is it that the Italia dei Valori party is the only opposition party that is currently talking about this issue?

Why did the parastatal companies and certain other major Italian companies suddenly move their advertising spend to Mediaset, notwithstanding the fact that the results of viewer surveys favour the government television networks? How many Callisto Tanzis (see today’s article in La Repubblica) are there in our country’s business fabric? How many “Parmalats” are there?

What methods did Silvio Berlusconi use in his role as Prime Minister to convince the management and the shareholders of these “new Parmalats”? Did he meet with them one by one, as he did with Tronchetti Provera in Portofino, or as a group on the outskirts of some or other Confindustria gathering?

And finally, why is it that no one other than the Italia dei Valori party any longer speaks about the European Court of Justice’s ruling with regard to the allocation of the television broadcast frequencies assigned to Europa7 and currently being illegally occupied by Emilio Fede?

Little awakenings. Better late than never.

Also read about:
Berlusconi, "Mister onepercent"

Italian money, P2-ist gifts

Italy needs some kind of future

Public assets, private profits for concession holders

Posted by Antonio Di Pietro in Economy
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31 May 2009

Draghi and Marcegaglia's responsibilities

They accuse me of persecuting a corruptor and of being a “negative” and anti-Berlusconi. I, instead, see myself as a partisan of the new resistance. I am in no hurry whatsoever, because time and the voters will prove me right.

How can I be expected to shut up with a Prime Minister who, notwithstanding the importance of his office, has the gall to try to shut up so-called "subversive magistrates" whose only apparent “sin” has been to attempt to do their job, and who has the gall to label as “subversive elements” those who have sentenced the beneficiary of a bribe without being allowed to sentence the corruptor? We would like to address certain issues, such as the crisis that is affecting the Country, the unemployment situation, the welfare benefits, the infrastructure, renewable energy sources and the control of the flow of immigrants, however, in Parliament, if for some reason they cannot get their own way by decree, then all they want to discuss are laws to prevent wiretapping, laws against the constitutional system, laws against the free migration of people in Europe, which more closely resemble the racist laws of the twenty-year period under fascism than laws capable of resolving the problem.

The political debate is currently in the hands of the social forces, namely the trade unions, the business and consumer associations, the Italian Central Bank and Legambiente. The Government has completely removed the citizen from this role.

Yesterday, the Governor of the Italian Central Bank, Draghi, painted a somewhat disturbing picture of the Country’s economy, within the context of a GDP rate that has dropped to -5% with very little hope of imminent improvement without drastic interventions being adopted in all sectors. He expresses the hope that the welfare benefit situation will be sorted out, that public investment will recover, and that action is taken with regard to supporting demand and extending credit. The Government, however, hedges, buries its head in the sand or simply couldn’t care less, engrossed as it is in managing the gossip surrounding Berlusconi’s family, while the media is nowhere to be seen and could just as well be defunct.

Draghi’s hopes are precisely the very same as those expressed by Emma Marcegaglia at last week’s meeting between the Government and Confindustria. Silvio Berlusconi’s responses to questions posed by the businessmen were little more than idle chatter, followed by a shameful attack against the judiciary. There too, Berlusconi preferred to share his legal problems with the delegates rather than outline a strategy to guide the Country out of the tunnel of the current crisis. I would dearly love to be able to share both Draghi and the businessmen’s’ concerns, but how credible is it when one attacks the very system that one oversees? Only if one is prepared to criticise one’s own actions. Where was Governor Draghi when the economic collapse hit the banks and revealed all of the dirt that the Italian Central Bank had watched as it grew? Why was no action taken to protect not only the banks, but also the investors who were the victims of the swindles that fed and are still feeding the mind-boggling remuneration packages and the stock options granted to the Managers and the unscrupulous errand boys?

And why did Confindustria President Marcegaglia not distance herself from that sickening applause that resounded throughout the hall during the course of Berlusconi’s attack on the judiciary, thereby humiliating that sound part of the entrepreneurial fabric that is nowhere to be found in the corruptor and tax evader? The investors, the workers, the banks and the businesses are only waiting for a show of courage in order to kick-start an economic system and a Country that it is increasingly difficult to feel a part of. Whose responsibility is it actually, Mr. Draghi and Mrs. Marcegaglia? Whose duty is it to implement a change process that will guide Italy to a future that is better than the current dramatic situation?

Posted by Antonio Di Pietro in Economy
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22 May 2009

An obstacle for the country, a problem for democracy

Yesterday we witnessed a propaganda programme: ‘Porta a Porta’. The programme goes out on public TV that is used by Silvio Berlusconi to manage his private scraps, family bickering, as well as his dealings with the justice system. In the studio with others was Massimo Donadi, the group leader of Italia dei Valori in the Lower House and Niccolò Ghedini, Silvio Berlusconi’s lawyer, who, when he is not in the Tribunal defending his client, is in the benches of the Lower House at Montecitorio to vote on government confidence measures.

As was to be predicted, even for the Mills affair, Berlusconi has stated that the fault is with the judges who are left wing, just as it was the left wing that manipulated his wife, signora Veronica Lario in her request for a separation. The truth is that this gentleman represents a bottle top on the bottle which is the development of the country, a danger for democracy, a continual weakening of our international credibility, and thus, an economic hazard.

If today I were the representative of a foreign company and I had to choose where to invest my capital, I would never think of Italy, a country in which the most basic certainties about the rule of law can be swept away from one decree to another, where every glimmer of ethics has been dissolved in the institutions, set upon by a government that expresses a decadent morality.
A country in which the President of the Council declares the uselessness of Parliament, letting it be assumed that he has the wish to dissolve the Houses of Parliament, taking the country back to relive the old sensations of a few decades ago.

A country in which the crimes of “apologia of fascism” of tax evasion and of corruption, by now are paraded on the early evening TV to the indifference of the general public, tucked in between a variety show and a programme like ‘Porta a Porta’.

Italia dei Valori is not going to stop acting as the only Opposition, and if to be accused of “anti-berlusconismo” means fighting for democracy, then we are all “antiberlusconians”.

Posted by Antonio Di Pietro in Economy
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18 May 2009

The blame game

The wages of the Italians are among the lowest in Europe, while taxation and the cost of labour are amongst he highest. Our precarious workers have no social security as a safety net and Italy's public debt is the fifth on the planet (source: OECD)
It’s not enough to tie earnings to profits, a mechanism, that among other things has been amply used in the companies to provide incentives for people’s labour. To dismiss the OECD report with this fictitious panacea, means shifting the problem from the shoulders of the State to the shoulders of the workers and the companies.

Tax dodging has to be slashed at the same time as reducing the tax burden on the Small and Medium Enterprises. We need to extend help to unemployed people, to all those who have lost their jobs in the year 2009. We need to check up on the companies that have improperly used the fund for redundancy to outsource their costs, we need to remove taxation on overtime working, to facilitate recruitment with tax breaks in the first three years of work, we need to give back the TFR {end-of-working-life lump sum payment} to the companies instead of swallowing it up to support a bureaucratic machine made up of organisations, quasi-organisation, provinces and useless foundations.

Citizens and the small enterprises need real money straight away. They can’t use solutions from the managers of old finance, of stock options, that turn out to be IOUs without backing in the myriad of collapses that we have witnessed in the last year. For those who state that the employees have to share the “entrepreneurial risk” I reply that with their precarious contracts, with a family to support, many families have already given it.

A government is not credible if each day it sees thousands of companies closing up shop and as many workers finishing up on the streets and it is asking the citizens, the workers and the leaders of small enterprises, to shoulder the burden of resolving a problem for which the prime responsibility is found within the State itself and in its inefficiency.

PS: Saturday 23 May I will be in Naples at the Palapartenope at the demonstration “Fight for Rights” to support Luigi de Magistris and Sonia Alfano, candidates at the European elections in the lists of Italia dei Valori. The day will be broadcast in live streaming on this blog.
Violated rights in our country are many, too many. From the right to express one’s own ideas in the streets, to that of being able to work and have a family. Every day a strip of our freedom, every day a gag, every day a step further away from democracy.

Posted by Antonio Di Pietro in Economy
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15 May 2009

The difference between the global crisis and ours

In the first three months of 2009, Italy’s Gross Domestic Product (GDP) suffered a year-to-year drop of –5.9%. As far as the Government is concerned, there is no problem, everything has been taken into account and, in any event, this is a global crisis and, therefore, “a problem shared is a problem halved”. Some people have even claimed that: “the deterioration has slowed”, a philosophy that is somewhat difficult to explain to the thousands of workers that have already lost their jobs and the thousands more that will still lose theirs between now and the end of the year.

The Government has handled the crisis very badlyindeed, relying on ineffective measures that come too late and have in many cases even aggravated the situation. If I was to ask any citizen of this Country: “tell me, what has this Government done in order to put more money in your pocket?”, they would probably be hard pressed to answer me, other than to maybe mention the “Social Card” and overlooking the fact that only one out of every three entitled citizens have received this card!

The Government has done nothing about the crisis and, in fact, all they have focused their attention on is gagging the justice system, wiretapping, “Save the Premier” Bills, neighbourhood patrols, Impregilo, Eni, Cai, Raiset and a whole range of other private or semi-public matters that have nothing to do with the welfare of the Country’s citizens.

It is true that the current crisis is a global one, however, upon exiting the tunnel, other Countries will find energy from renewable sources, rehabilitated industry, a competitive financial system that is under control, new international relations and new opportunities in a new economy. Italy, instead, will only find Berlusconi’s nuclear power, loads of incinerators, a Country turned into a concrete jungle by the construction workers’ party, an economy that is firmly in the hands of a very elite clan of businessmen and a banking system that is a virtual monopoly, in a Country lacking even the most basic human rights and democratic freedoms. This is the difference between the global crisis and ours.

Tonight at 21h00, from this Blog, I will be transmitting on live streaming live from Palermo: “Informing in order to resist”, a demonstration in which I will be taking together with Sonia Alfano, Beppe Grillo, Giocchino Genchi and Luigi De Magistris.

Posted by Antonio Di Pietro in Economy
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22 April 2009

Iveco, breathing in the crisis

I’m publishing my presentation at the press conference in Brescia where I met up with the trades unions, the Association of Artisans, Confapi and the National Confederation of Artisans as well as the skilled workers of Iveco.
Among the proposals for employment we have included: solidarity contracts, benefits for being laid off even for those working as “precarious workers”, unemployment benefit raised to 1000 euro a month, the de-taxing of salary increases, the block on companies being allowed to sack workers if those companies have received state help, and also: “Yes to the single European contract”.

As you can hear in the video that follows in the words of Maurizio Zipponi, a trades-unionist and a candidate for European elections with Italia dei Valori, and from the evidence given by the workers, the crisis is certainly not finished, as the government bodies are rushing to assure us.
Perhaps it is finished for those who didn’t even feel it on their skin, certainly not for the thousands of workers who have been laid off, for the “precarious workers” in the scholastic institutions who have landed up in the street, for the tens of thousands of sole traders who have closed down throughout the land. For them, the crisis exists and who knows how long it will go on for.

Read the text of the presentation in Italian

Tomorrow, 22 April, I will take part in the Unicobas Conference about schools. It is to be held in Aula Magna of Itis “Galilei” (V. Conte Verde, 51- Roma) and I will talk about the two draft laws about schools that protect the teaching staff.

Posted by Antonio Di Pietro in Economy
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23 March 2009

Luigi De Magistris: clarity on European funding

D.Martinelli: You will go to Brussels, obviously if you are elected: do you think that you will deal with what happens to European funding, given that no one ever knows who it comes from, where it is destined to go and through whom?
L. De Magistris: If I were to be elected, the topics of transparency, of honesty and of the rule of law will be the main threads characterising my activity and that of all the people who are elected in the list put forward by Italia dei Valori. The topic of public financing is one of the most important because it deals with the way in which money belonging to everyone is invested, not just the money belonging to the Italians.
We must be watchful of our country’s image. For now, they know us to be a nation that has wasted large sums of public money without producing work, progress and without having had any growth from the economic viewpoint. We have to give a different image. Enough of the politicians who chatter and who go to Brussels just to look after the interests of themselves and their friends. Above all, we have to say that public financing doesn’t necessarily have to be abolished with the excuse that it can create just assistance. The problem is how the money is invested, how the money destined for Italy is spent.
I believe that we need to do like they do in Spain and in other countries, where public money has been destined above all to the zones that are the most devastated from an economic viewpoint. Turning to the South of Italy. The money has to be managed in a correct way and it has to be used above all to create enterprise in a good way, by being a means of delivering activities to the area that are not damaging to the territory, but that create sustainable development that respects the natural resources.
These sums of money would be useful in zones like Calabria but also in other zones of the South like, for example, Campania, Puglia and Basilicata, where there is an enormous unemployment rate. This money should be useful for improving the economic situation and to create jobs. Obviously what’s not needed is what has happened in the last few years when it has been possible to reconstruct with a number of judicial investigations, obviously not just the ones that I have carried out and about which I do not talk. By means of an illegal management of public money a series of business committees were created and these managed this money illegally. They have influenced the whole of the economic system and they have suffocated free private enterprise by creating an economy that rotates around public spending, controlling all the contracts, the projects, by managing all the recruitment, even controlling votes and in the end producing what I call a sort of democratic metastasis and a systemic corruption that is truly spine-chilling.
Now there’s the opportunity to turn over a new page. It’s not just the European elections that are the first step that is extremely important, but also the possibility to construct, all together, a work place that leads to transparency and the rule of law, that cannot help but lead to development, respect for our country and, as I am certain, an image that is finally different so that we will not have to be ashamed of being Italians when we go to Europe.

D.Martinelli: An obligatory question that I have to ask about the criticisms that have been aimed at you from different sectors. I am not asking you to analyse them one by one because they could not be of interest to us.
L. De Magistris: Even because there are so many of them.

D.Martinelli: Exactly. But how do you feel when you are criticised, first as a Public Prosecutor and then as a political candidate now?
L. De Magistris: You see, I am used to it, obviously because for years I have carried out the role of Public Prosecutor with a high level of commitment, thus I have been committed as a magistrate and I have been subject to fierce criticism, that I think was unjust, but I did not draw back. Now, as a politician, I am even happier to be receiving criticism that favours debate and interaction. I believe that political dialectics is the salt that flavours democracy, then the false and unfounded accusations don’t bother me too much, because I believe that we don’t have to make the Italians waste time with a "ping pong" of accusations like “he said that and you replied”, but the things that really interest the country: work, the economy, the environment, and justice.
I repeat, I will put all my enthusiasm and passion to construct a new way of doing politics together with other friends who have decided to choose this opportunity that has been given to us by Italia dei Valori.

Posted by Antonio Di Pietro in Economy
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20 March 2009

There's no future in nuclear power

Here is a video clip and the text of an interview that our reporter held with Giuseppe Onufrio, Director of Greenpeace Italia. Listening to Onufrio’s words, a citizen will not be left in any doubt whatsoever: there is no future in nuclear power. The Berlusconi Government, version IV, is busy steering us completely away from the development of the kind of energy that we really need and is pushing us along this path, which runs far away from renewable energy sources, the only real opportunity we have for the next few decades. During the European elections to be held in June, we will be going back to Europe, together with renewable energy.

Extract of the interview

“Berlusconi signs this agreement with Sarkozy. But what did Sarkozy do prior to this? In order to understand the situation, we must take a few steps back. In actual fact, the French are really desperate because they don’t have any orders. What they do have however, are two construction sites, one in Finland and the other in France, in which Enel holds a 12.5% shareholding. Sarkozy had already gone to Morocco and Algeria to offer them this technology, which is already more than complicated enough even for a Country like Italy, you can only imagine for a Country with less experience than we have. Prior to the agreement with Berlusconi, Sarkozy had announced the pending construction of a third reactor at Pelmì. Now, the Italian public must always check even the tiniest of details, because it doesn’t seem “normal” when some or other government representative states that we are busy building a nuclear power station. You will note that, in the meantime, the market has become liberalised, and it should not be the Prime Minister who announces the construction of a new reactor, this should be announced by an electrical utility company. Furthermore, this announcement was made in a strange manner in France, where there is a tradition of public consultation and there is a preparatory phase during which every new nuclear plant is discussed. In this sense, it could be said that France has a fairly strong tradition of democracy and transparency and, therefore, they have always managed the nuclear power issue in a fairly “civil” way and have always held proper consultations with the Country’s population. This announcement was made outside the scope of any construction programme and was followed immediately by the signing of an agreement with Berlusconi.
The only ones that could perhaps be in the market to buy a nuclear power station are the British, who have to shut down eight of their own power stations, and those have already arrived. However, in Britain at the moment, Edef (the French version of Enel) are interfering in the energy plan by attacking the renewable energy and wind power objectives because, with these other types of energy supplies in place, there would be no room left over for nuclear power. We must all be aware of the fact that the nuclear power sector is facing a serious crisis and is being killed off not by the environmentalists, but by the market, as well as the fact that costs have risen in the past 60 years instead of dropping, this in addition to the fact that a number of major problems remain unresolved to this day, such as the disposal of nuclear waste and the questions surrounding the inherent safety of the technology. Nor has the issue of nuclear proliferation, so much so that everyone is immediately concerned when Iran starts setting up a nuclear power station, because this type of technology can easily lead to the production of a nuclear bomb, meaning that military utilisation of nuclear technology is closely linked to civil utilisation.
For 40 years France stayed out of NATO and based its military strength on this very same nuclear technology, so much so that its entire nuclear fuel cycle is under military control. France is the only Country that continues to produce Plutonium, which, as you well know, has very few civil applications but remains an essential component for manufacturing bombs. The United States ceased their Plutonium production back in 1977 when Carter was President, and never recommenced production.
We are dealing here with a technology that is in crisis and one that requires lots of money in those places with liberalized markets, and then, to top it all, it is an issue that could cause us to miss the train of renewable energy and efficiency. If ever these four reactors proposed by the Government were to become a reality, they would produce approximately 42-45 billion kW/hrs, while European objectives for the electricity sector alone amount to 50 billion more by 2020 and, if we also take efficiency into account, in other words, replacing the equipment with which we are producing electricity with more efficient equipment, the technical potential and the objectives, this would increase to some 100 billion. The potential of renewable energy sources and additional efficiency is three times that of nuclear energy and, in terms of employment, the potential is at least 10 times greater."

Posted by Antonio Di Pietro in Economy
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11 March 2009

Italy needs a future

On Sunday according to the President of the Council, the crisis “was there but it wasn’t serious”. Up until the day before that “it wasn’t there”, yesterday “it was there but it was without poverty”. As I have already written, Silvio Berlusconi is incapable of managing the crisis, and his plan for the relaunching of the economy is limited to the construction of the lobbies, to Enel’s nuclear projects and the TV networks that he owns. His vision for Italy’s future is pretty simplistic: an elite made up of very rich property owners and financiers, and the rest of the population made up of carpenters, unemployed people and pensioners with the social card. No credible project to relaunch the country beyond the TV adverts and choices without a future like the bridge over the Straits of Messina.

But Berlusconi is extremely optimist. Why?

The citizens would understand his state of mind better from the figures he has pocketed, the ones reported in an article in Italia Oggi, for the dividends of his companies. The figure sets your head spinning: 160 million, that is an additional 50% with respect to the amount for 2008. The results of the same companies, as explained in the article with a touch of sarcasm, are “against the trend” in relation to the market, and I would point out that that is thanks to the concessions.

In a moment of crisis like the present one, it is not thinkable to keep the State concessions at “courtesy” prices, or basically almost free.

The State asks for sacrifices from the population and thus the income from the concessions must be reviewed immediately, in relation to the one who is making enormous profits thanks to the exploitation of public infrastructure.

For the concessions of the frequencies used for broadcasting by the Mediaset networks, the State receives the pittance of 1% of RTI turnover, one of the many companies belonging to the Berlusconi family and this does not see the enormous income from advertising. It’s a joke.

On 20 January in the article Berlusconi, ''mister one per cent" I stated that I was about to present a question requiring a written reply to ask the Minister for Economic Development for an explanation. I have now done this.

I am waiting for the reply, that has not yet been forthcoming, but I will continue to ask for it.

Posted by Antonio Di Pietro in Economy
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20 January 2009

Berlusconi, ''mister one per cent"

mister unpercento

The radio and TV concessions cost the President of the Council, Silvio Berlusconi, one per cent of the money he gets in. Have you read that OK? The Italian State, for years has been gifting to Mediaset, through RTI, 99% of the income that it gets. Only one per cent is left for the State.

The frequencies used by Mediaset for broadcasting belong to the Italian State which can give them as a concession to any company it wants to. That could be Mediaset or any other company. Logic would dictate that the concession mainly brings in money to the State coffers, not to private companies. The wealth of signor Berlusconi, of the entrepreneur Berlusconi, is derived from a “gracious” concession first obtained from Craxi with a ridiculous annual one off payment and then from the D’Alema Government in 1999, with the one per cent law (page 32: law 488, art.27 comma 9, of 23 December 1999). A law that has never been discussed by the other Governments that followed, among which obviously are his own governments.

”Mr. one per cent” is rich and he continues to increase his wealth because of a law that literally gifts him the radio and TV frequencies. He pays one per cent of the receipts. But which citizen could have a State good paying only one per cent of the receipts? No one, unless they are Berlusconi. The law that regulates the radio and TV concessions needs to be changed immediately. It is a parasitic law that takes away from the Italians, all the Italians, an enormous income, due to them, to gift it to the President of the Council. A true robbery in accordance with the regulations.

The Mediaset Group is living off the backs of the Italians. In 2007 its turnover was more than 4 billion euro of which 2.5 billion was derived from advertising on Mediaset networks. Let’s turn the percentages upside down: 99% to the State and one per cent to Mediaset. Italia dei Valori will present a parliamentary question on this true expropriation of income from the Italians by Silvio Berlusconi.

Posted by Antonio Di Pietro in Economy
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13 January 2009

The country is going down, Berlusconi thinks of himself

Today’s newspapers give two items of news: “State Bonds at lowest level. record debt for Bankitalia” and “Justice system, Berlusconi’s diktat”
The government’s behaviour is identical to that of Mario Giordano’s Il Giornale, “Mortmain” of the President of the Council, who slanders Di Pietro while Israeli tanks are going into Gaza. People who live as parasites and who have not the foggiest idea of the priorities of the citizens. So just like a parasite, intent on providing for himself, he doesn’t think of the survival of the host being.

In the future, no one will have the intention of financing the State, because in the State, in this State, anyone who has economic and financial far-sightedness has very little trust. The levels of Italian public debt, risen to 1670 billion euro, and the credibility of those who govern us, are the cause of the lack of trust in the market. The only positive item in the article seems to be the increase in the tax revenue but I am sorry to sadden Tremonti but the increase in the revenue is due to Bersani and the previous Prodi government that was committed to fighting tax evasion, rather than justifying it. Instead I would remind Tremonti that in 2009, because of the economic crisis, tax revenues are due to fall and quite drastically.

In this dramatic situation Berlusconi is pontificating about a reform of the Justice System in his “own style”, that is without the involvement of the Opposition. A detail that did not have to be spelled out, given the representational role to which Parliament has been relegated in these 11 months.

The citizens do not want the gagging of the Saccà wiretaps, nor a “Lodo” for the Mills trial. They want to know if they can sleep easy for the 3 year Government Bonds in which they have invested all their savings or for their parents’ pension.
But Berlusconi, paid by the citizens to tackle the problems of the country, is tackling only his own problems, obviously the criminal court ones, what other problems could someone like him have?

Posted by Antonio Di Pietro in Economy
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4 January 2009

Malpensa swindled

The Berlusconi government has added insult to injury. That’s the result for the Malpensa workers and all the companies and the citizens of Lombardy and of the North with the conclusion of the Alitalia affair.

Last Spring Berlusconi and the Lega, when they were still in Opposition, blocked the sale of Alitalia to Air France because, according to them, it would have penalised Malpensa airport and thus the whole of the Lombardy economy. Now that they are in government, they have closed the deal with Air France, with the additional factor that the debts of the old Alitalia (equal to 3 billion euro) have been charged to the Italian taxpayers, whereas before that, they would have been picked up by Air France and with the further additional factor of the more than 12 thousand Alitalia employees who are currently being sacked and more than twice that number in the satellite industries of Malpensa. Furthermore, it’s necessary to consider the fact that because of the financing of Expo 2015, there’s a lack of money to strengthen the motorway and railway systems. This was financing that Prodi’s government was strongly in favour of.

Basically, it’s the usual "Berlusconi-style swindle" that the Italians are kept in the dark about, only because the media are in the hands either of Berlusconi himself or as in the case of the public service, they are subject to his vetoes and his influence.

Already starting from Thursday 8 January, Italia dei Valori will participate in the public protest demonstration, that will happen right at Malpensa to raise the issue with the general public to be watchful of this other misdeed in favour of the “crafty ones of CAI”, to whom Berlusconi has wanted to gift our flagship carrier.

And our wishes for the Lega – about whose intellectual honesty in having close to their hearts the economy of the North we have no doubt – that they may find the strength to oppose the economic disaster for the businesses that is about to hit the area around Milan’s airport at Malpensa. And the wish is that the Lega this time votes with courage for the amendments that tend to liberalise the market at Malpensa by opening it up to all the airlines. This is courage that was not witnessed for the so-called “Save Alitalia” measures proposed by the Berlusconi government last summer, thus leaving IdV alone in this battle.

Posted by Antonio Di Pietro in Economy
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6 December 2008

Energy, yet another missed train

The Budget is hampering our Country’s development in the environmental and energy fields.
While the more advanced Countries are seeking alternatives to petroleum, incineration and nuclear power, the Berlusconi Government is focusing precisely on a kind of model that will exclude Italy from the energy market within the space of only a few years.

The Budget cuts made to the tax incentives for energy savings is in fact one of the many links in the chain that is going to prevent our Country from developing an industry revolving around the manufacturing of the plants and technologies of the future. Once Italy has missed this train, the Country will have no choice but to purchase plant and supplies from other Countries, as is happening today in the case of the old types of energy.

Within the next few years, the artificial barrier that exists between energy as a whole and energy from renewable sources will cease to exist, because all of the energy utilised will come from renewable, and therefore inexhaustible sources.
Nuclear power as an energy source has failed even before it began and even France, which is the main sponsor of atomic energy in Europe, is seeking to get rid of it and is attempting to sell off to other Countries the obsolete technology that has caused significant financial losses for the Country.

In Europe, in 2007, wind power generated more electricity than nuclear power did and the wind farms built between 2008 and 2012 will generate two and a half times as much electricity that the new kind of nuclear power. Solar power is heading in the same direction.

The centre-right’s response to these development forecasts was to approve provision 1441 ter, a bill that has gone to the Senate after having been approved in the Chamber, which eliminates the Regions’ jurisdiction regarding the assessment of the environmental impact for crude oil extraction plants and the siting of nuclear sites. In essence, it will be entirely up to Berlusconi to decide where to sink crude oil extraction wells and where to build nuclear power stations, flying in the face of federalism.

The reasons for these anachronistic choices are very clear: the energy lobbies are colluding completely with the political control system from which they receive their benefits.
Thanks to these anti-environment and anti-economic development choices, Italy is becoming increasingly isolated from Europe and the rest of the world.

Posted by Antonio Di Pietro in Economy
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3 December 2008

More consumption and more taxes

I’m publishing the video and the text of my brief interview given yesterday at Montesilvano, in the province of Pescara, about the “anti-crisis” package and on the contents of the measure that hits those who subscribe to Sky.

Question: An action from national politics that relates to the package created by Tremonti that relates to investments, above all the savings of families. The increase in sales tax on SKY is the latest thing to come out of this Centre Right coalition that seems to hit only SKY and to a lesser extent Mediaset Premium. What have you got to say about this measure?
Antonio Di Pietro: In reality what is most worrying is not that it penalises one TV network and favours another, and that is certainly serious, but we are worried by the fact that the one who loses is always "pantalone" (the unlucky one). It’s always the Italian citizen. What have they done here? They have increased the sales tax that is paid by the final consumer, the Italian citizen. In one way or another SKY acts as the paper pusher, to collect a tax and pass it on. It receives the sales tax and it pays the sales tax. It might get a few less clients because it costs more, but those who lose out are the customers, who if they want the service, have to pay more.
Basically, do you remember what the President of the Council said? You have to consume more. But if you make me pay more I’ll consume less, and not more! Even my 5 year old grandchild can understand that.
But even Berlusconi understands that and that’s why he is tricking you.

Posted by Antonio Di Pietro in Economy
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30 November 2008

Governing competition

concorrenza%20governativa.jpg

In the plan that is ironically called “anti-crisis” there is a measure that strikes those who have subscribed to pay-TV, that is to Sky. This measures doubles the sales tax from 10 % to 20%.

Once more, Silvio Berlusconi is using the State and his position in a conflict of interests in favour of his own TV stations. He does it by grotesquely inviting the citizens to consume more but by taking more money from their pockets.
The extra boost to consumption so much talked about in campaigns and TV appearances has stopped short at fictitious and superficial measures like that of the social card. If Berlusconi had wanted to give a boost to consumption, he should have reduced the sales tax as has happened in England where Gordon Brown has announced the reduction of the sales tax from 17.5% to 15%. The reality is that this measure is aimed at hitting the company that is Mediaset’s only true competitor on the market, that is Sky, a company that in recent years, as stated by its CEO in Italy, Tom Mockridge has created thousands of jobs as it is continually investing to develop the company in Italy. What’s more, it is hitting 4.6 million families. The company based in Cologno (Mediaset) makes out that it is indignant but it is celebrating in private in the villa at Arcore, given that the package of measures would be insignificant as it only affects a marginal part of the President of the Council’s family business.
After the Europa 7 affair, Silvio Berlusconi is effecting another package of measures to put his companies in a position safe from the crisis that will hit the country and the other companies apart from his own.

Posted by Antonio Di Pietro in Economy
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29 November 2008

The "Social Card" blunder

Today I would like to talk to you about the matter of this Social Card that the Berlusconi government has proposed in order to assist the poor.
I have nothing against the scheme itself. Indeed, I would be happy if the poor could be given as much as possible and not just this 40 Euro per month that is currently being proposed, which is equivalent to about 1 Euro twenty per day. Better than nothing perhaps, but not when it is given in the form of such a brazen handout.
Take a moment to think about this. They have chosen to call it the “Social Card”, which is the English equivalent of a “bread voucher”. There are ways and means to assist the poor, but the last thing we want to do is to humiliate them. The dignity of a poor man is worth far more than that of a wealthy man. The wealthy man can even afford to buy some dignity if needs be, but the poor man cannot afford to buy dignity, so any dignity that he may have must be inherent.
So, they are going to be sending this card to the individual’s home and the man then has to take the card, go to one of the supermarkets, perhaps the Prime Minister’s own supermarkets, where he can then only purchase certain specific products.
Couldn’t they rather just send the 40 Euro per month itself to the man’s home, instead of sending him the card? It would cost less and it would allow the individual to decide for himself what he wants to do with the money, perhaps buy some medicine or bread rather than butter. Why humiliate the poor in this manner when they have already been humiliated enough? Must they really be made to stand in the queue at the supermarket checkout counter and listen to the other patrons behind them whispering about them?
This is the kind of humiliation of human dignity that turns a citizen into a subject, and the individual with the power is not in fact offering a service, but is behaving like a master giving his dog a crust of bread or a piece of bone. That is the thing that upsets me and I believe that it is very wrong. This is a perfect example of the current government’s cultural model that I refuse to accept and that I aim to oppose.

Posted by Antonio Di Pietro in Economy
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14 November 2008

The CAI Company

Here is a video clip and the text of my address during yesterday, Thursday November’s edition of Annozero, on the topic of Alitalia.

"Then there is the matter of the arrogance displayed by a group of people who, on the orders of and with the backing of Premier Berlusconi, have set up a pseudo company, because airline transportation is not their business, and have proceeded to humiliate the airline companies that could otherwise have participate in a true international tender process.
I say this here so that what I said earlier in Parliament may stay here as proof for anyone who wishes to contest this fact: firstly, Alitalia failed, it was not rescued. Secondly, precisely because the company failed, the employees are being put on unemployment, whereas, had the company instead been rescued, they would not have been. Thirdly, given that Alitalia as a company has failed, the Italians will be obliged to pay the one billion, seven hundred million Euro that they would not otherwise have had to pay. Fourthly, as regards the three hundred million Euro bridging loan that Berlusconi demanded be given to Alitalia, the European Union has said that the former company must pay back this amount, however, by definition the former company cannot pay it back because the legal decree that provides for the appointment of the extraordinary commissioner stipulates that these monies can only be paid back once all of the company’s other creditors have been paid. What this means is that, once again, the Italians will also be obliged to pay back this three hundred million as well. Two billion was paid, but only the assets have been taken over by this “CAI Company”. What precisely am I trying to say? This company paid how much? They paid an amount established by an assessor called "the Leonardo Bank". Who are the members of this " Leonardo Bank"? A number of members of CAI, to be precise. So then, they made it, they sang it, they played it and they told it and, in the end, they set their own price.
What are we asking? That at this value, which was mentioned to CAI, put it out to tender and involve people who are in the airline business and that can transport us safely, even at a lower price but more safely. The only one in this business is Toto who, had he not already gotten involved, would himself have disappeared."

Posted by Antonio Di Pietro in Economy
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28 October 2008

Yet another save-the-crafty

I am once more going to reflect with you on the new economic and financial Italian power and on the conflict of interests that is even more afflicting Berlusconi, his family and his government. This time the moment is given by the new structure of Mediobanca.

Mediobanca is the financial heart of Italy. Once upon a time there was Cuccia, the one who never talks and always does. Today not only do they do everything but they talk as well.

Today as you know, even the Premier’s daughter Marina Berlusconi, is going into Mediobanca, but above all that is possible because in Mediobanca there’s Mediaset. But not just that, there are also so many characters: there’s Ligresti, Tarak Ben Ammar, Tronchetti Provera, above all there’s Geronzi, its president, on trial for things like Parmalat.

Basically, in the morning we no longer know whether our President of the Council, when he decides something, is he deciding for this little group of entrepreneurs, financiers and even a few speculators, who are in Mediobanca, or is he doing it for the Italians? Certainly when he was there saying which shares to buy he said exactly those that are present in Mediobanca. Thus it’s certain that if he did any favours by indicating what to buy, in terms of the stock market, he did a favour for his friends.

Some of these shares are the same ones to be found in Alitalia. Or rather, given that it has gone bust, in that “strange strange” airline company that was born at the last minute and that has taken the good things of Alitalia.

In all this conflict of interests, that until it is resolved, our country will stay always at reduced efficiency on the economic and financial level in the world, you will ask me “but why are you telling us again today?” There’s news, new today: there’s been deposited, still by Berlusconi’s government, a draft law that has already been put into the timetable, - they hardly have time to deposit it that it gets to be discussed, (while the one on the impossibility of being a candidate for convicts they always forget) – that allows for the reform of bankruptcy crimes.

It is not a reform but a “carte blanche” delegation of power to the government: Parliament has to approve a law that says “dear government, I can’t succeed in doing it, you do the law on bankruptcy crimes”. The regulation is called “white regulation”, however in it there’s a clause inserted: “watch out government, when you are doing the crime of bankruptcy set down a penalty that has a maximum of 8 to 10 years”. One might ask why that has been put there. It’s very simple, because right now it is up to 10 years and if it is changed to “from 8 to 10” years, this gives the possibility to the government, that is to Berlusconi, to even decide to set it at 9 years.

Do you know what is the difference between having a sentence length of 9 years and one of 10 years? If you have a sentence length of 10 years as a maximum according to the law, the Statute of limitations comes into force after 15 years. If you have a sentence length that is even a day less than 10 years, for example 9 years, then the Statute of limitations comes into force after 10 years and not 15.

So in the end, what have they done? They have set up a new crime of bankruptcy with a reduced sentence length so that the time frame for the Statute of limitations is lower. And so?

Is it true or not that Mediobanca’s Geronzi is on trial for the Parmalat affair? Yes.
Is it true or not that that has a time limit going on until 2011? Yes.
Is it true or not that we are still at the preliminary stage of debates at the first level? Yes.
Is it true or not that with this justice system that cannot function in time for 2011, that is just round the corner, and then the Statute of limitations comes into force? Yes.

Won’t Berlusconi have taken this decision about bankruptcy to save his friend Geronzi? The sentence will come later, but you don’t wait until later: act now.

Posted by Antonio Di Pietro in Economy
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9 October 2008

Save the Managers

In a situation in which the world economy is on its knees for the speculation and scurrilous behaviour of an entrepreneurial, political and financial class that has acted with purely speculative aims, the measure, connected to the “Save Alitalia” legal decree that opens the doors to impunity for who has verifiable responsibility in relation to these facts, it represents a gesture that undermines the country’s credibility and its capacity to recover.
I am publishing the video and the transcript of my intervention in the Chamber of Deputies this morning.
”I maintain that the President of the Council has the duty to come to Parliament and that he doesn’t have the right to go off to «il Bagaglino». Thus I believe that it is right to deplore the behaviour of that President of the Council who instead of coming to Parliament loses time by going to «il Bagaglino». In such a sensitive moment for the Italian situation.
We of Italia dei Valori consider this measure for what it is. We cannot even judge it because it doesn’t exist. Is there anyone in this Chamber who has read this measure? We are giving an expression of trust to a measure whose basic outline we have to read in the newspapers. Let’s say everything, then: in recent months the Government has disciplined everything with legal decrees, establishing even measures that serve some of them. They haven’t yet done a publicity spot for legal decrees. In fact, up until now, in reference to this legal decree, it is just a matter of an advert. How much money has the government paid out to meet the needs that have been spelled out? There’s not one euro. So it has been said: let’s settle everything – this is the first guarantee that has been pronounced - , in fact, let’s reinforce at a State level, with a hundred thousand euro, the guarantee for all current accounts. I’m wondering with what money? If it is true, as it is, that Minister Tremonti has stated that Italy is the third country in the world classification as regards the public debt and if it is true, as it is, that it cannot allow itself any further euro of deficit, with what money is he going to settle all this? Is it true or false that up until yesterday we have been told that for the banks there has been the possibility to operate because in the same context, an interbank fund has been set up to guarantee current accounts? Today we discover that that fund is such a nominal fund that it’s also necessary to have a State guarantee. But the State guarantee with what money is it given? Without setting apart even one euro.
So it’s a question, one more time, of an advert, done without money.
The second guarantee that we have been given is as follows: it has been said that if the banks should happen to be in difficulty, the State will build up its capital, money coming in from tax revenue, and if it is already in deficit and cannot spend a lira? One more time it is a matter of phrases blowing on the wind.
It has been said, if by chance then, the companies have no funds, the Bank of Italy will take responsibility to put liquidity into the banking system. With what money could the Bank of Italy do that, if it doesn’t even have what is needed to settle the State deficit? We believe that in response to the hypocrisies of “the day after” it’s necessary not to take notice and that it’s necessary to look at concrete things: this is why we are going and we want to go from the words to the actions, Signor Minister, this time I am addressing you who are not present!
You have said that Ecofin has advised us not to give payments – this is the word that you used – or unmerited fees to the managers. We have to stop saying one thing and doing another: if it is true, as it is, that article 7 bis of the Alitalia legal decree sets out that those who commit crimes cannot be pursued, if there is solely a declaration of insolvency and not of bankruptcy, this means that with words you say that you want to respect the Ecofin recommendations, but in your actions you are adopting, with this legal decree, measures that assure the lack of responsibility of the various managers who in recent years have reduced the situation of the society to this low point like this.
Basically, you are saying today that you want to reinforce, by giving money to the banks, the guarantee for the deposits that the citizens have with the banks. To which banks? With article 7 bis of the legal decree mentioned before, you are guaranteeing impunity even to that Geronzi, Chair of Mediobanca (Applause from the deputies of the group Italia dei Valori), that is, you are guaranteeing impunity to one of those people who is under investigation for the Cirio disaster, and the Parmalat disaster among others. In other words, exactly for those disasters that are a result of that creative accounting of recent years. This is the difference between the words and the actions: you in your words say that you want to meet the repercussions of the financial crisis in our country by giving stability, liquidity and trust. If only! We too would like to take steps to meet you with these commitments that you have, but the legal decree adopted yesterday does not set apart a euro, in fact it establishes that the State will pay everything, but with the money of others. The only thing that it has produced is a great feast of the “hour after” at “il Bagaglino”, while of concrete facts, no intervention has been done for the families, for the small and medium sized companies, to give back transparency to this finance market. In fact, the only intervention carried out has been to guarantee the impunity of those who are the cause of these collapses To me it seems that between the words and the actions there is a great difference.
So we repeat that we are in agreement with that government that would one day decide to do something for the Italians. But once more, today with a legal decree, you have managed to provide not a solution for the Italians, but an advertising spot to just sell yourselves. (Applause from the deputies of the group Italia dei Valori) .”
Posted by Antonio Di Pietro in Economy
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6 October 2008

Let the government guarantee savers

Western banks are collapsing one after the other, even the ones that are the most solid and that have existed for centuries. In this financial storm that doesn’t seem to stop, some European governments are reassuring their savers with important declarations and solid actions.

Ireland was the first to guarantee total cover for deposits to avoid the spread of a collective fear and to avoid the worsening of the financial situation. Today, the German government decided to follow the Irish one and to guarantee all deposits of private savers in German banks. The decision of the government of Angela Merkel’s executive was announced by the spokesperson of the Finance Minister Tosten Albig.

The Berlusconi government must reassure savers and give stability to our finance system. The President of the Council has the obligation to ensure the full coverage of bank savings without placing any limit otherwise what could happen from this point on will be taken for granted. That is a massive flight of savings from Italy to the countries that offer a total guarantee for savers with the resulting crash of our banking system.
Posted by Antonio Di Pietro in Economy
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22 September 2008

Alitalia: Courageous employees

Photo: IlSole24Ore

At last. The extraordinary commissioner, Augusto Fantozzi yesterday decided to open a public competition for the purchase of the Italian flagship. It’s what he should have done before. It’s really the moment to say: “Better late than never.”

It was a duty-bound choice, an obligatory route that we of Italia dei Valori have been requesting for some time. In my opinion, the choice to put Alitalia on the market and the responsibility that the pilots, the flight attendants and the land-based staff want to take in becoming part of the management, shows that a solution can be found.

Yesterday, after the government’s umpteenth declaration of closure towards every other solution to save the company apart from that proposed by Cai, a closed position reinforced by the Ministers Sacconi and Matteoli, I had stated that the Berlusconi executive must not blackmail the workers and behave with Alitalia like the mafia people do with their victims.

The government’s insistence in continuing with this way of behaving constitutes a disturbance in the sale as big as a house and it has evident repercussions for civil, accounting and criminal responsibility. Italia dei Valori is formally asking Antonio Catricalà, the head of the Competition and Market Regulator, to do his duty and to immediately start proceedings to protect the market and to protect transparency. The premier cannot in fact continue to state that the company is on the brink of collapse, as it discourages the passengers from continuing to fly with Alitalia

If this is not disturbing the market, tell me then when it is? Anyway, in this affair, Berlusconi has major responsibility: he wanted to sell off the flagship company. The idea of the government wanting to insist on the Cai proposals, in fact, for me is the obvious demonstration that Berlusconi wants to favour his friends, the usual local wide boys. He made an electoral promise that was then shown to be a swindle to the detriment of the workers and of the economy of the country.

As I have mentioned, today the union representatives of the pilots, the cabin crew and the land-based staff, in a press conference at which I participated, announced their intention to make available a part of their salaries and the whole amount of the final lump sum payments, for a total value of 340 million euro, even more than double the sum offered by Colaninno for the relaunch of Alitalia. This initiative demonstrates that the Alitalia workers do not want to abandon the company, but are ready to risk their own money so that it can continue to fly. I can foresee the possibility of arriving at a solution that is satisfactory both for the company and the employees. At this point the government must accept its own responsibility.
Posted by Antonio Di Pietro in Economy
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Economy and Infrastructure

I’m publishing a part of my speech on the 11 points of Italia dei Valori’s political programme dealt with at Vasto: economy and infrastructure.

”We have already said and we will repeat: what’s needed is less bureaucracy for the companies and a greater decrease in the taxation for investment in research.
On the one hand what is needed is a more massive liberalisation of those public services that can be supplied in a non-essential competitive situation and on the other hand a direct management of those services that by definition cannot be carried out except in a monopoly situation. I believe, so that we understand each other, in the privatization of rail transport (that can be carried out by more than one company) but not in the privatization of the railway network (given that the rail track where the trains have to go is just one). I am thinking of the privatization of the service of rubbish collection (that can be carried out by more than one competitor) but not for the management of water (given that the pipes and mechanisms are just those that exist). And so on.
Now allow me also to summarize here even in a short version what I have said in the name of IDV, to the meeting at Cernobbio last week: we don’t want to block economic and infrastructure development. We don’t want to align ourselves with the paranoia of the hard core: “No to everything” but neither can we accept that in the name of the politics of action, that the only thing that is done is that the Italians are taken for a ride.
Having said this at the beginning, we know that there is no convergence between the infrastructure that is needed by the country and the resources needed to create this. And for this reason we have developed a “vision of priorities” that we want to use for discussions without prejudice both with the allies of the PD as well as with the political forces of the government majority.

First of all, the work that has been started and is in progress must be completed and that is among others to avoid even throwing away the work done and the money spent. I am referring to the Mestre bypass, to the doubling of the Naples-Turin rail track, but also to the numerous bridges, tunnels and various other work that is unfinished here and there in every corner of the country, sometimes because they have run out of money, sometimes because of difficulties in the planning or the execution of the plans, and also at times because of exhausting political blocks and polemics.

Read more in Italian.

Posted by Antonio Di Pietro in Economy
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28 August 2008

The stricken Alitalia

Yesterday I made some declarations to the press agencies on the Alitalia situation. I have tackled the issue in different articles on this blog, that you will find links to at the bottom of this post.

The Alitalia issue represents a colossal fraud that at times during these sad months for the company has bordered on the illegal, as ell as causing to plummet the already hardly rosy image of this country to the lowest ever. You will remember that I defined the interference of Silvio Berlusconi on the Air France - Alitalia negotiations as a true act of insider trading.

During the election campaign, Silvio Berlusconi promised to put the flagship company back on its feet and that he had an all-Italian consortium ready and willing to make the purchase within a time frame of 4 weeks as was written in Il Giornale. Here too he was lying. But that lie cost the Italian people dearly, also the Alitalia employees, badly advised by their “protectors”, the Trades Unions. After taking from the citizens 600 billion in old lire to pour into the flagship company, today Berlusconi is an interested promoter of a new company that at zero cost will exploit the branding and the routes of the Alitalia shell, by offloading the debts onto the State and onto a plethora of tiny shareholders who will lose everything.

Thanks to Berlusconi 7,000 employees will lose their jobs, a few more than the number worked out by Air France (there was talk of 2,100 in excess). What will happen is simple, one more time, the debts of Alitalia and of the Bad Company will fall onto the citizens, and at the same time a new company useful to Berlusconi and his bosom pals will be born.

But the government is insisting and Minister of the Economy, Tremonti thunders: “They left us with two disasters: Naples and Alitalia. The first one was resolved by Berlusconi at the end of July, tomorrow he will resolve Alitalia.” For Naples, it’s not enough to say “it is resolved” after clearing two roads in the city centre and furthermore the political responsibilities for that situation caused by a decade of alternating governments has never been tackled by removing the political causes. The second, Alitalia, it is this government that has made it worse and will make even worse still, at the expense of the citizens.

I am not against the fact of the company staying “Italian” as some people think, as long as it is done by respecting the rules of a free market and while respecting the interests of the Italian citizens and not a restricted circle of privileged folk.

Read also:
Alitalia: miracle postponed
The nonexistent bid
At the Country’s expense
Alitalia: basta illudere i cittadini

Posted by Antonio Di Pietro in Economy
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8 August 2008

The 98 billion that has disappeared

On Tuesday 5 August, I presented to the President of the Council of Ministers, a question requiring a written response. The question relates to the tax evasion of 98 billion euro, (news of which was available in the previous legislature) by numerous concessionaires of the State Monopoly with authorisation to install and manage slot machines.

All the slot machines in existence on the national territory should have been connected to Sogei, while according to the investigation carried out by the Finance Police it has been verified that the concessionary companies have not complied and that a large number of the machines were not connected. Only if it is impossible to connect is there a forfeit tax, but it seems that this exception has become almost the rule and to guard against this behaviour a fine was brought in of 50 euro for each hour of non-connection. Unfortunately it seems that the State Monopoly, that should have been collecting the fines, has never applied the sanctions. Another source of worry is the news that alluded to the fact that some of the companies with concessions are connected to organised crime.

From swift recovery actions and by correctly managing these concessions there could emerge resources to tackle the numerous economic-social issues that relate to the future of the country and the current living conditions of the young, of workers and of pensioners. Unfortunately the government does not see the need to promote timely clarification nor for recovery actions to be put in place to recover the unpaid money.

Read also: 98,000,000,000 tax request

Posted by Antonio Di Pietro in Economy
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4 August 2008

The absence of the Consob and the Bank of Italy

Where were the Consob and the Bank of Italy when the financial scandals were happening? They haven’t convinced us that they didn’t know anything, but we are convinced that there were conniving even if there was no complicity.

We of Italia dei Valori have prepared a package of laws that relates to savings and credit and aims to find the funds to relaunch the economy of the country. But instead of taking from the weak to give to the strong, it takes from the crafty ones to give to all the citizens.

Among our proposed laws we have the abolition of the clause of the maximum overdraft in the bank, measures for the introduction of the “popular ownership of the money”, the prohibition on small town authorities to underwrite financial derivatives, the partial sale of the State gold reserves to the benefit of the public debt, new regulations about the ownership of the Bank of Italy and the transformation of the popular banks into special rights joint stock companies.

Furthermore we propose the setting up of two new parliamentary committees of enquiry. One about the activities of Isvap, the regulatory authority for insurance, to investigate the anomalies in the system that continues to see an indiscriminate increase in insurance premiums, in spite of the liberalisation that has taken place. The other is on the activities of the Consob and the Bank of Italy in relation to the scandals and the financial and industrial dislocations, as well as the distribution of argentine bonds among Italian savers.

We are asking that Parliament take an interest in serious things rather than various “lodi”. To those who accuse us of being subversives, we reply that subversives are those who keep hidden these issues so as to hang on to the loot. Of this package there will be little discussion because it is easier to talking badly of Italia dei Valori and to identify it as the party that deals with justice and that carries forward justicialism.
Posted by Antonio Di Pietro in Economy
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29 July 2008

No to the kill-precarious-workers-regulation

We of Italia dei Valori did not swallow the obscene “kill-precarious-workers-regulation”. We voted against it and with a loud voice we are asking for it to be withdrawn.

It’s as though we found ourselves in front of a game of football. At a certain point, while they are playing, the referee gives the victory to one of the two sides before the game is over. It is clear that the referee did an incorrect action by selling himself to the highest bidder. That is what happened with the anti-precarious-workers regulation that has the extra factor of the vote of confidence. One has sold himself to the current entrepreneurial lobby, in this case the post office and to do a favour to them, has penalized thousands of workers. It’s the classic example of how you can abuse the institutions by asking for a vote of confidence even for things that are not of general interest, but that just satisfy the appetites of certain lobbies.

We find it to be scandalous that such a regulation has been done, a measure that cancels out the current system under discussion and that condemns the worker to precariousness for life. It’s as though a current powerful person were to rob a bank and someone decides that that action is no longer a crime. A sort of washing of the rules of democracy, that are no longer such.
Posted by Antonio Di Pietro in Economy
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18 July 2008

The credibility of the government

The Minister of the Economy Giulio Tremonti spoke yesterday in Parliament of “a three year stabilization of public accounts”.
He outlined an image of the country in a critical but not a dramatic condition, according to him, in a context that sees this government slipping into a position of extreme weakness and credibility on this topic.
Both because, up until now this government has been busy with the private affairs of Silvio Berlusconi, and also because it has completely divested of its authority and the functions of a Parliament with so many decrees, and also because it will have to continue to do this for Silvio Berlusconi’s business even for the next few months, as he has already stated, also because the European Court has thrown out the Italian tax amnesty on IVA {sales tax} for the years 1998-2001 contained in the 2003 Finance Law and wanted by this same governing group.
Also because of all this, the Centre Right has not yet been able to give a signal of recovery and relaunching of the economy.
We of Italia dei Valori, I’m saying again to Tremonti, will be very happy to tackle the only emergency for the country: the economic one.
But in Parliament, not in other venues. Because it is in Parliament that the problems of the country are discussed, and not those of a single person.

”PRESIDENT. Honourable Di Pietro has asked to speak. He may speak.
ANTONIO DI PIETRO. Mr. President, Mr Minister who is present, I thank you because at least you are present and thus finally we can tackle this with a person who comes into Parliament and who, even for a few minutes, listens to us.
I believe that in relation to this measure it was possible and should have been discussed from the first day, thus, I am sorry that for 60 days we have had to busy ourselves with other matters, that had nothing to do with the urgent matters and the emergency, but that were only concerning personal matters.
I am also sorry that this measure, even though it is urgent, has to be tackled not just with a legislative decree, but even with a vote of confidence, exactly because Parliament must still be free to deal with other matters.
I am also sorry that we have to liberate Parliament not just for before the holidays, but we have to liberate it also after the holidays, because at that time we have to deal with still other things that have already been announced by the President of the Council, that is of Parliamentary immunity, of the CSM and of other things.
I am sorry, because I believe that this measure and this topic, that is proposed to us today, is what we really need.
Now that we have dealt with the method of cooking the pancake, we have to discuss its merits, for the time that is allowed to us.
We want to demonstrate that we are completely contrary to the fact that it has to be discussed with the mechanism of a legislative decree and that in fact we have to not discuss it, because what we are doing today and tomorrow is just a little game to lose time and to have it said that, anyway, we have discussed it.
Anyway you have already decided and we already know the time that there’ll be the vote of confidence and when it will be done. It is, basically, just a form of recreation for a couple of days.
I, however, want to deal seriously with what is written in the measure being examined. Above all, I have listened attentively to the arguments, as I always listen with great attention to the arguments of the Honourable Tabacci. I repeat in this venue as well what I have always said outside, when people like yourself or the Honourable Tabacci, speak and express their ideas, I prefer to take notes and to listen. In fact, Italia dei Valori does not just want to denigrate. When we believe that we have no option but to shout in the desert we can do nothing more, but when we listen to people who express their ideas, that we can agree with or not agree with, we listen with great attention.
MAURIZIO LUPI… it is the arm of death…
FABIO EVANGELISTI. But what the xxxx are you saying, stupid
PRESIDENT. Honourable Evangelisti, I beg you to moderate your language in all cases.
FABIO EVANGELISTI. They get offended every time.
PRESIDENT Honourable Evangelisti, stay calm. No one has given you permission to speak, allow the Honourable Di Pietro to speak.
ANTONIO DI PIETRO. The Honourable Tabacci has dressed you down for reasons of both methodology and content. On methodology, as you know, I too do not agree. As regards the content, I believe that in his speech, apart from the opinions as to whether it is or not an academic discussion, there are aspects that can and must be agreed with, and that we agree with, and there are others that we don’t agree with. And it is good that we draw attention to them, even in the short time that is available. I will limit myself just to list those aspects, not having had the possibility to participate in a parliamentary debate that perhaps by means of the confrontation, could convince me better, or thanks to which we could give some indications.

Posted by Antonio Di Pietro in Economy
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28 May 2008

The duty of the Institutions

I’m publishing the video and the transcript of my speech in the Chamber of Deputies about the amendment presented by the Government that sets out the approval of the agreement between Autostrade per l'Italia and Anas, on the date it comes into effect of the law that converts the legal decree about community obligations, without going through the CIPE, which is going against the duty of the institutions to act so that the concession is useful to the citizens and not just useful to some concessionary company.

“Mr. President, I too am speaking about the agenda because I believe that before voting on this additional article, it is a good thing that all of us parliamentarians know up to what date Anas can approve the concession outlines, with the certainty that they will become valid straight after that, without the need that there is, that is that as happens now, that is the decree of the Minister of Infrastructure, the counter-signature of the Minister of the Economy and Finance, the opinion of the Parliamentary Committees of the Chamber and the Senate, the opinion of the controlling bodies.
Basically, we are putting our trust in a corporate enterprise as regards the State accounts without using any controls, without State intervention! No State body, whether Parliament, the Government, the controlling bodies like the Court of Accounts or the State Treasury, that really should be giving its stamp of approval, none of all that is done and a corporate enterprise is doing nothing other than deciding to whom a concession is to be given that is not theirs to give, it is a concession of the State, and of which they are concessionaires! (Applause from the deputies of the groups Italia dei Valori and Partito Democratico)
For this reason, in relation to the order of the activities, I am above all asking the President of the Chamber to get a response before the vote.
Secondly, I am asking the government to withdraw the amendment proposal being examined (Comments from the deputies of the group Unione di Centro) because it dispossesses the institutions of a right and a duty: that of checking whether there are the conditions to hand to a third party this good, this concession.
Lastly, we of Italia dei Valori cannot accept a formulation like this, because it is against the duty of the institutions to act in such a way that the concession is of use to the citizens and not just of use to some concessionary company, which, without controls, is thinking how to manage its own resources. (Applause from the deputies of the groups Italia dei Valori, Partito Democratico and Unione di Centro.)"
Posted by Antonio Di Pietro in Economy
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30 April 2008

Throttled by paying sales tax up front

The relaunch of enterprise needs immediate and decisive action. One of the problems, in particular for the SME is cash, having liquidity for investment, or even for current trading, without having to get credit, and thus without having to get into debt and having to pay interest which is ever more onerous because of the increasing cost of money.
Italia dei Valori as its first action in its parliamentary activity will propose the abolition of the regime of paying sales tax up front on invoices issued. The recovery of the sales tax should happen on payment of the invoice. This measure if approved by Parliament will allow the companies to shake off a financial burden and to avoid having long waits for the repayment of the sales tax and the adjustments. Paying the sales tax up front today is of benefit to the banking system but not to industry as the companies are often obliged to get into debt to carry on their activity.
This initiative is just the first one that Italia dei Valori will carry out, to allow the development of companies and to put them in a condition to be able to compete in the Italian and international market.
Posted by Antonio Di Pietro in Economy
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27 April 2008

The nonexistent bid

Here are some of the comments I made in an interview I gave yesterday to the “La Stampa” daily, regarding the bridging loan granted to Alitalia.
"In the Cabinet meeting, I personally reiterated that no one should take the liberty of implementing provisions that are illegal, and it is my belief that this provision, yet another of those forced through in accordance with Berlusconi’s wishes, will yet be punished by the European Union because it constitutes State aid.
I bear witness to the fact that Berlusconi delivered an ultimatum to the Cabinet: I want three hundred million because I want enough time to put together a bid. His response to those that pointed out that this would constitute State aid, he said that he couldn’t care less and that all he wanted was a bridging loan. Anyone can buy whatever he/she wants as long as they are using the Italian Taxpayers' money.
I am against the utilisation of the institutions in order to undertake any illegal operations. I believe that the European Union will certainly impose a fine on us, that there is no consortium ready to make a bid and that we will end up with the not only the damages, but we will also land up becoming a laughing stock. The damages are the fact of having lost Alitalia as a result of not having re-established open dialogue with Air France, and becoming a laughing stock as a result of losing a further three hundred million, with the bill being picked up by the Italian taxpayer."

Posted by Antonio Di Pietro in Economy
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22 March 2008

We will pay for him

Following the decision handed down by the European Court of Justice, our Country will soon be faced with having to pay a substantial fine unless the Italian television broadcasting laws are brought into line with European standards. Here is an interview I gave on this very subject to the “L’Unità” newspaper.

L'Unità: As far as Sivio’s most ardent supporters are concerned, you, Antonio Di Pietro, are Public Enemy No.1. Even worse in fact, «a man that horrifies everyone», as Sandro Bondi stated the other night on Ballarò. The leader of the Italia dei Valori party does not appear to be too concerned by this, anything but. Right there in the Rai3 studios, he did not mince his words: he wants to “dismember” Mediaset.
Tell us Minister, was this purely an electoral campaign threat or is it truly realistic to expect Rete4 to simply remove the inconvenience, in favour of Europa7?
Antonio Di Pietro: «The need to take away one of Mediaset’s channels, thereby remedying something illegal, has been sanctioned by both the European Court of Justice and the Italian Constitutional Court. The fact is that this illegality has not yet been remedied is something that brings shame upon our Country, because what it proves is that the Italian Institutions are unable to enforce the law. The need to act as quickly as possible is also dictated by the fact that there is the threat of an extremely heavy fine to be paid by Italy unless the Country complies, and to pay this fine we would need the equivalent of another annual budget each year ».
L'Unità: And what is your response to those who say that compliance would mean putting at risk certain companies that employ many people?
Antonio Di Pietro: «The argument used by the employees who work there does not make any sense. It would be the same as saying that it is okay for any company that fails to pay its taxes, or fails to comply with safety regulations, or fails to pay standard wage rates to break the law, simply because it employs a certain number of people. Furthermore, no one is actually wanting to shut that company down. All they want is for one of the Company’s channels to broadcast via satellite because someone else has won the frequency that it is currently broadcasting on. Let us remember that the network that is currently broadcasting on that frequency is only there because it has denied some other channel the right to broadcast ».
L'Unità: You say that the issue of conflict of interests will also be “breathing down Berlusconi’s neck”, but do you also believe that the centre-left has been too “soft” in this regard?
Antonio Di Pietro: «The centre-left has not only been too soft, it has in fact been negligent. It is a sin. To remedy a problem while you are the majority party is much like having a wound that must be repaired. We of the IdV party will adhere fully to the programme, and this includes complying with the law. We have no intention of allowing discounts … The fact remains that Berlusconi was governing this country while, at the same time, being the holder of a public service concession. We will never know whether he is making decisions based on his own interests or on ours. Indeed, the tailor made laws prove that his decisions are based entirely on his own interests ».
L'Unità: The “Cavaliere” claims that you are a “pensioner”, just like Veltroni …
Antonio Di Pietro: «That is rubbish. I am heading for 60 years of age, but I don’t receive any pension payments from Parliament. I still have a long way to go ».
L'Unità: There are those that could say that your alliance with the Democratic Party is merely a ploy you are using in order to improve your chances in the elections …
Antonio Di Pietro: «No, as far as I am concerned it is an iron-clad pact. The IdV’s claim to fame lies in the credibility of its actions. The issues surrounding the telecommunications reforms and the conflicts of interest must be addressed at all costs, because the regulations demand it, both the Italian and the European regulations to be precise. By tackling these issues head-on, we are reasserting the credibility of the programme and that of Veltroni as Prime Minister, thus demonstrating our determination and consistency ».
L'Unità: What would change in terms of the Italian scenario once the European Court decision is implemented? Something much resembling a revolution…
Antonio Di Pietro: «The affirmation of legality can never be compared to a revolution, it is simply a matter of re-establishing the legality of some pre-existing and recurring violation. We have unfortunately become the laughing stock of the international community, precisely because we are unable to enforce the law. This was already unacceptable when Berlusconi was at the helm, but it was also a natural consequence of a conflict of interests. However, I must also add something else, namely that, according to the Government, the situation would now be very different had we repealed the shameful legislation and resolved the issue of conflict of interest within the first hundred days, by approving the radio and television broadcast reforms. Instead, if we continue to-ing and fro-ing, we will land up being screwed and downtrodden. Screwed in the sense that a lack of variety affects us all, and downtrodden because we will be obliged to pay a huge fine ».
L'Unità: Now let’s talk about the G8 meeting in Genoa. Veltroni had some harsh things to say in this regard. Knowing what you now know, would you still vote against the establishment of a commission of inquiry?
Antonio Di Pietro: «At the time, we voted against the proposal to establish a commission of inquiry simply because the intention was to investigate only the allegations of illegal behaviour by the police and not the actions of those that committed violent acts against the police. Thanks to the investigations carried out by the judicial authorities we were provided with a clearer perspective of the events that unfolded, including the fact that two extremely serious criminal acts were committed at the time. The first was the infiltration of what was essentially a peaceful protest, by a bunch of thugs and hooligans. These are people that arrived there, armed to the teeth with clubs and incendiary bombs and who devastated half of the city and attacked the Police officers. Then there is the fact of what happened thereafter, which is equally unjustifiable, namely the reprisals and violence unleashed by certain of the forces of law and order, which is even more serious in that those responsible were wearing stars on their uniforms and were representing the State. I must point out, however, that in both cases, the facts did not emerge as a result of any commission of inquiry, but thanks to the efforts of the judiciary. A commission’s duty is to assess the policies behind the events that occurred, otherwise, by laying the responsibility at the door of one or other side, the truth of the matter becomes twisted».

Posted by Antonio Di Pietro in Economy
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4 March 2008

The value of infrastructure

From day one, Italia dei Valori has not wanted to participate in the Bassolino Cabinet. As you know, they were all competing for a cabinet position, and now I don’t know how many are at Poggio Reale instead of at the Region Headquarters.
We have always wanted to make a mark and the sense of discontinuity, because we believe that in that reality there is above all the need to give back transparency to the institutions with a general change over of the generations.

Whether or not Bassolino likes it, Bassolino on a personal level will sort out his affairs in front of the judges, but on a political level, after having been Mayor and the President of the Region for so many years, his political responsibility is objectively such that it is necessary for him to stand down, because a relationship of trust has broken down. He says he needs to deal with the rubbish, but he should have been dealing with it for 20 years, he doesn’t have to remember it now that he is on trial. It would have been better if he had done it earlier.
I believe that in Italy there is the issue of the South, but also of the North. As Minister of Infrastructure, I have tackled it and I want to continue to tackle it because if we go to the South there are so many problems connected above all to jobs, to employment and to the future of youth, but if we go to the North there are big problems connected first of all to the defence of the world of the economy and of the system of the companies that make Italy great.
I believe that it is the issue of the North and the logistics that is needed by all this enterprise system. This is the reason why I have committed myself, while receiving a load of criticisms from the maximalist left and others, about the corridor number 1 and the corridor number 5 and the Trieste-Divaccia.

Infrastructure is not damaging to the country. It’s damaging if it’s done badly, if it’s not useful and when it has exorbitant costs, but infrastructure that is done well helps the environment, increases the economy and the possibilities for the country. The TAV is nothing other than a rail system that allows for the transport of goods that now goes on lorries on a train, going through Europe and Italy fast, safely and with less pollution: this infrastructure helps the environment. With the policy of “not doing” there’s damage to the environment and to the State finances ten times greater than with the policy of “doing”.
We, of Italia dei Valori want, and we want it strongly, to win the elections together with the Democratic Party and Veltroni. We, of Italia dei Valori feel like those on a boat that is rowing to bring the model for reforming the management to the other side of the river. It’s no good asking us: “will you or won’t you get to the other side?”. To everyone, I say “concentrate on rowing, and don’t be looking around to see whether or not you will get there, because that way you definitely won’t.”
Posted by Antonio Di Pietro in Economy
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14 January 2008

Italia dei Valori cuts 890 million

It’s a new year and we have the usual occasion for meeting you.

Today is 11 January and it’s the first Council of Ministers and the first meeting with you. Thus “Happy New Year”. We really need good wishes for the New Year, we citizens, but also we Ministers. We who are “precarious” Ministers who are trying to do our duty and at the same time trying not to be pawns of the system according to which you always say “yes” when the ones talking are of the coalition and you have to always say “no” when they are from the other coalition.

As regards us of Italia dei Valori, this year we are even more committed to the themes we have always been pursuing, that are the generation exchange of those who do politics, who change nothing if they don’t change a few people, the fight against the abnormal waste and cost of politics, the functioning of the public administration, the fight against bureaucracy, transparency and the rule of law.

What did we do in this first Council of Ministers? As regards institutional decisions we did very little, in that we had a decree brought by Padoa-Schioppa relating to some controls by the Bank of Italy, and we put it off because if we put it into action with a decree law it would have crowded out Parliament that already has to deal with other things and then it would have ended up in festive spirit.

We should have done the reform of the honorary judges, a draft law presented by the colleague Mastella, but there is still too much tension regarding a fundamental issue: is it right that those who find themselves in a judging role without having taken part in a “competition” then end up as judges like those who have done a “competition”? OK I said that in “dipietrese” but that’s the idea. There’s pro and contra, because on the one hand they have the professionalism, on the other hand, they haven’t got through the “competition”. This needs further discussion and it has been put off to another Council of Ministers.
This Council of Ministers stands out more for what wasn’t decided or for what was decided outside the Council of Ministers. Even a few appointments were decided, but I’ll talk to you about these at the right moment, because everything has its “right moment”. Make a note of that.
A lot of things have been done out of the Council of Ministers. There was a meeting of the majority the day before, to look at the economic policy of this country, an important meeting that I would dare to define in a few words as “a joyful and warm meeting of the residents of a condominium” in which everyone found agreement in so many good intentions.
I got left with the bitter taste of understanding if we were all so good was it because we had said as much to “baby Jesus” or because we were afraid of not going home before Carnevale? Is it the fear of abandoning the “armchair” or a sudden explosion of political maturity?
I don’t know because there were 38-39 people. There’s something sweet about these meetings of the majority. Every time we meet, we discover that there’s an extra condominium resident. At the beginning of this legislature, there were 9 of us. Today I found so many people who surely represent themselves, at least with the vote they were not representing. I was present.
Everything that we decided on wages, which is an important thing for workers in regards to taxation was decided in words. Now let us see whether in fact all this will be done.
Another thing has been done by Italia dei Valori: we have shown all the things we managed to get through our actions in this budget law. Since they are so many, I invite you to click on our website to see how we cut the fat of politics.
In this the budget law Italia dei Valori created a saving of nearly one billion euros, 890 million euros, cutting some unnecessary expenses, such as eliminating the "circoscrizioni" in many towns.
Just think there are in Nuoro 13 constituencies for about thirty thousand people.
We were also able to achieve a reduction of 20 million in funding to political parties to make a few prisons. Perhaps it is better to do some prisons rather than give the politicians, maybe they could use them too.
Read on the blog, where you will find the fat of politics, as can be cut. Read it, tell us what you think and what more can be done.

I tagli ai costi della politica

Posted by Antonio Di Pietro in Economy
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10 January 2008

Malpensa, an issue to be sorted out

I’m publishing an interview given to today’s il Giornale.
On Monday 15 January in a mini-cabinet we will have a discussion about the reduction in the number of flights for the airport of Malpensa. One thing is clear: we can’t throw to the wind twenty billion in investments in a region that today represents the engine of the economy in this country.
Il Giornale: Many people reckon that Malpensa is not well connected and that this is its main handicap. How do you respond?
Antonio Di Pietro: We have already created a lot of infrastructure, and together with the Region we are in the process of creating more. With the Region, we have had meetings and have done positive things like the “Pedemontana” {Motorway running through the foothills of the mountains}, the connection with the Turin-Milan motorway, the connection to the Fiera{exhibition area in Milan). We have put in a lot of money and anyway, Malpensa is there. For us to ask now whether it was right to put the hub in the heart of the Po valley is like asking whether it was right to build a hospital that exists anyway and is an excellent structure. There would be no sense in closing either one or the other.
Il Giornale: Are you intending to tackle this issue in the Council of Ministers to get clauses safeguarding Malpensa?
Antonio Di Pietro: We will have to see in the Council of Ministers, but the “Tavolo Milano” {Roundtable on Milan} is even more important. At this moment, its function is more sensitive, because it has strict commitments. I will repeat officially the commitments made by the Ministry of Infrastructure.
Il Giornale: In the last few meetings, the “Tavolo Milano” seemed to have little substance. Will you ask for strong commitments?
Antonio Di Pietro: I will repeat that I intend to keep to the completion of the infrastructure connections that are useful for Malpensa. Having said that, I will go and ask what the others intend to do because we don’t intend to construct cathedrals in the desert. I will ask what guarantees they intend to give. We will talk about the issue of Malpensa without regard to the situation of Alitalia or at least we will have a look at what needs to be done regardless of Alitalia.
Il Giornale: The meeting between Bossi and Prodi has not brought great results. Does it seem to you that it would be realistic for the government to defend Malpensa?
Antonio Di Pietro: I don’t know what is realistic. I’m in the habit of looking at that the day after. Actions in defence of Malpensa are in defence of the system of Italy. The intercontinental airport does not just serve Lombardy but the whole country. And it should be considered in reference to what it can become in the future, above all with its insertion in Corridor 5. My commitment is to take action so that Malpensa’s air traffic can grow still more.
Il Giornale: There are those who propose accepting Campania’s rubbish in exchange for guarantees of slots.
Antonio Di Pietro: The two things must be kept separate. I will fight to ensure that Malpensa’s functioning continues. Something like that seems offensive for Campania and for Lombardy. It would be a cattle market.
Il Giornale: How is it possible to keep the intercontinental routes?
Antonio Di Pietro: Thinking of Malpensa’s future only in terms of the slots is reducing the issue. No one is denied four slots. But the problem is the intermodality because we have to be sure that any possible upset doesn’t lead to the whole thing not being used. An interchange is needed, the strengthening of the Ferrovie Nord {Northern Railways} and the connections with Switzerland, the Pedemontana {motorway running through the foothills of the mountains}. After that the slots then come on their own. Already now, there are extra ones that are not being used. Perhaps the problem will be resolved like that. If I were in the Region of Lombardy, I would not rest. The aircraft will come if they find an economy that is fruitful.
Il Giornale: What do you think of Formigoni’s idea for a Northern company?
Antonio Di Pietro: I don’t know. When I see it functioning I will see. Even “Volare” was a Northern company and it flew straight into the hands of the bankruptcy court. In itself, it is neither good, nor bad.
Il Giornale: And a mixed State-Region company on the business model of the Cal for the Lombardy motorways?
Antonio Di Pietro: It’s not my job to say.
Posted by Antonio Di Pietro in Economy
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31 December 2007

Northern Italy’s troubles

Here is the text of an interview I granted to today’s "Il Giornale".
Il Giornale: Minister Antonio Di Pietro, you are originally from Molise, but have you perhaps also left a little piece of your heart in Milan?
Antonio Di Pietro: Much more than just a little piece. I am a Molise-Lombard ».
Il Giornale: So you also then get the feeling of the problems felt throughout the North, which have been exacerbated by the Malpensa-Alitalia situation?
Antonio Di Pietro: Firstly, I would like to separate the two phenomena. As regards the problems of the North, of course I notice them. However, it is one thing to notice a problem, while it is totally another thing to exacerbate the problem in an exploitative manner. What I actually believe is this. On top of the sense of trouble that is actually being felt, there is also a certain amount of exploitation going on, something that is certainly not helpful in terms of solving problems and which relies on demonstrations in order to further the cause. Instead, when facing serious problems, what is required is a greater sense of responsibility. Not a street demonstration.
Il Giornale: And as regards Alitalia? Don’t you think that the choices that have been made, which also involve Malpensa, will land up exacerbating the problem?
Antonio Di Pietro: Just the other day, I attended a Cabinet meeting. There we were provided with all the information relating to this matter. Furthermore, as Minister for Infrastructure, I have received some additional documentation, which we were asked to keep confidential. It follows, therefore, that I am bound by confidentiality requirements as regards the Alitalia issue and I cannot say anything.
Il Giornale: You are a member of a Government that exists only on paper since it no longer enjoys a Senate majority...
Antonio Di Pietro: Are you referring to Dini’s moves?
Il Giornale: Yes.
Antonio Di Pietro: Can I answer with a Di Pietro-ism?
Il Giornale: Certainly.
Antonio Di Pietro: Dini is trying to screw someone and, in the end, he will get screwed.
Il Giornale: Beg your pardon?
Antonio Di Pietro: He is taking advantage of the situation in order to gain personal advantage at the expense of others. But I don’t believe that he will succeed. Also because it is improper.
Il Giornale: And yet, Lamberto Dini’s criticisms levelled at the Budget are shared by a number of international and other organisations...
Antonio Di Pietro: That may well be true, however, his argument is somewhat like that of the man who has Ursula Andress and says that he actually wanted Carla Bruni. That is not the right way to go about getting things done! Furthermore, I don’t believe that his reasons are entirely altruistic. I believe that his intention is to set himself up politically.
Il Giornale: A legitimate operation. Furthermore, this is not the first time. In this current legislature, there are other similar examples of people switching allegiance...
Antonio Di Pietro: I don’t agree with regard to the legitimacy. I personally do not agree with what he is doing. I don’t believe it is proper. In my opinion he is making capital out of it.
Il Giornale: In what way?
Antonio Di Pietro: He is attempting to break down and reassemble majorities. If such a situation is destined to occur, then it must wait until after the elections and not before.
Il Giornale: And when exactly will the elections take place?
Antonio Di Pietro: I undertake to let you know immediately after the electoral committees have made the announcement.
Il Giornale: So everyone else is being good...
Antonio Di Pietro: What do you want me to say? Who know? You would need a crystal ball in order to know these things and I don’t have a crystal ball.

Posted by Antonio Di Pietro in Economy
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24 December 2007

The Cabinet. Rules for tenders

Friday 21 December, the second last Cabinet meeting of the year, because the last one is scheduled for 28 December to approve the so-called the “thousand postponements decree”. At the end of each year, a survey is done to identify all of the provisions that have not been finalised during the year, so that, by passing a final legislative decree, the finalisation can be further postponed, thus permitting us to do next year, that which we were unable to do this year.
In the CIPE, we decided on two basic issues. A range of public works to be performed using all the remaining available funds. It is important to let everyone know that, for the first time ever, the Ministry for Infrastructure will not have a single cent left over, meaning that it has spent all of its funds for the envisaged works. There are no residual unused funds lying around, nor are there any stalled, half-completed works, in other words, we of the “thousand postponements decree” will not have to postpone the works that should have been carried out this year, because the works for which the money was allocated have all been commenced.
It is very satisfying to know that the last 200 million, more or less, have been allocated through the CIPE, to a whole range of important interventions, above all to complete those interventions that were already underway but required additional resources.

Read the complete text
Posted by Antonio Di Pietro in Economy
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14 December 2007

The Cabinet. New funds for security and information

Tuesday 11 December 2007, The Cabinet.

There was much discussion but very little was approved, in the sense that we failed to agree any new draft bills. Instead, we discussed a number of very important topics, most important of all being that of the Budget law, which has been approved by the Senate and will be presented to the Chamber by this Sunday, and we need to decide regarding which of the texts should be approved. The Chamber parliamentary committees have introduced further amendments and another new governmental amendment will be introduced by tomorrow, which will take into account all of the comments and which will then be put to the vote.

How does this year’s new Budget law look, you ask? It contains both areas of light and areas of darkness, but certainly there are many areas of light, in that it redistributes available resources in favour of the weakest members of society and in favour of development. Certain areas of darkness exist, however, due to the fact the Budget Law must be voted on in Parliament, where there is a very narrow majority in favour of this Government and we have, therefore, been obliged to make a few too many “offerings”.

I would now like to explain what are, in my opinion, the “offerings”. On my Blog, you will find a letter I wrote to the Prime Minister, in which I stated that from now on we must avoid squandering resources in order to satisfy any Tom, Dick or Harry. The Budget Law in itself is a good law. Pity about the dropped threads of submission to one or other blackmail attempt by one or other parliamentarian who would otherwise not have voted.

Here are some of the concessions made: funding for sanitary kennels and catteries, funding to save historic assets from the First World War (and here I was, thinking that it had ended some time ago!), funding to finance a book centre, funding for softening our tap water (it must be tap water though!), funding for an Italian immigration museum, and funding for the Italian accounting body (privately established). Just imagine, the funding to save historic assets from the First World War was detracted from a chapter regarding strategic infrastructure, namely the funding for a draft bill concerning our motorways and railways.

We achieved a lot, but we could have done more. If it is true that the State’s expenses and waste are excessive, then these would have been a good area for making some cuts and, on the subject of cuts, I would like to mention what we of the “Italia dei Valori” Party managed to obtain. We refrained from requesting any funding for some or other grouping and, instead, we requested a cut in the expenses. Here are a few of the expense cuts we managed to obtain.

The repeal of the so-called Mancia (Gratuity) Law, introduced during Berlusconi’s time, which made provision for a fund of 3 million Euro, from which, at the end of the year, every parliamentarian could request a portion on behalf of his constituency.
We requested and obtained a reduction in the number of mountain village municipalities, a reduction in the number of selection panel administrators and a reduction in the number of districts.
We requested that the bulk of these funds be allocated in favour of our forces of law and order, beginning with the payment of overtime pay to policemen and Carabinieri that carry out their duties every day, which was agreed to. It was also agreed that a portion of these funds would go towards increasing the funding for local television stations, those that offer some sort of plurality beyond Rai and Mediaset.

This is the contribution made by the “Italia dei Valori” Party: a reduction in the amounts of waste and the reallocation of funds towards security and information. This is why we would have preferred to see those funds, allocated on a whim to the other twenty or so chapters, rather being put towards security and development.

Whatever the case may be, since we are obliged to sum up the totals, this Budget is the best that we could come up with. Next time, however, the reduction of wastage had better be even clearer, in order to balance the books.

Posted by Antonio Di Pietro in Economy
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28 November 2007

Injustice has been done

No formal objection regarding the Court of Cassation Public Prosecutor’s decision to hold a disciplinary hearing against Milan judge Clementina Forleo, Public Prosecutor in the Unipol-Bnl inquiry.

Everything officially correct …just like in the script.

However, it leaves a bad taste in one’s mouth when one realises that, once again, the one that forced to bear the brunt is always, and only, the one that is simply trying to do his/her duty without “keeping an eye peeled” or exhibiting fear or reverence for anyone in particular.
And so, in these rare cases, it happens that an inordinate number of personalities, bodies and institutions move in unison in order to dig up, dissect every spoken and written phrase and inspect every action under the microscope in search of the minute speck, the quibble required in order to justify criticism against the one that, in the end, “must” be shown to be inept and unreliable.
Equally, the final outcome is a foregone conclusion, irrespective of the actual intention of the person that, even in good faith, participates in this exercise in personal demolition. By logical consequence and transient propriety, everything that that courageous judge is doing, or has done (and is therefore questioned), is deemed to be unbelievable and must, therefore, simply be archived.
However, all is not yet lost. Judge Forleo, like Public Prosecutor De Magistris, still have the opportunity to make their voice heard in the institutions (starting with the Upper Council of the Magistrature) and to defend their actions. The aim is to reaffirm the right-duty of every magistrate to motivate his/her provisions in accordance with their conscience and independent conviction and not on the basis of convenience or of the people involved.
In the interests of clarity, therefore, if we were to sift through thousands of judicial provisions regarding ordinary citizens, we would surely find an infinite number of expressions or statements used by the judges, which could raise the same criticisms that are being levelled in the case of Forleo. Nobody, speaking of ordinary citizens, would dream of making accusations against the judges for the expressions used in motivating their provisions. Instead, in this case, as in all of the cases involving the Palace and the High Castes, all the highest powers of the State (starting with Parliament) have sprung into action. With the help of the media, public attention has been cleverly diverted away from the real objective of the investigations, namely the guilt in terms of the web of intrigue that emerged from the tapped telephone conversations and the the judge that wanted to read and assess them, rather than the local clever dicks that were seeking sponsors and protection for their financial escapades.

Posted by Antonio Di Pietro in Economy
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National Railway cuts

Yesterday an article appeared in the Corriere della Sera newspaper, containing my comments regarding the blocking of funding for the National Railways. I stated that I was getting tired of a Government that hands out money willy-nilly while others decide what to do with it.
I have received many letters on-line as regards this issue. I attach one of these below. It is from a citizen that, like many others, would like to see certain changes, is counting on this Government, and must not be disappointed:

“Dear Mr. Di Pietro,
I am an employee of Trenitalia s.p.a, a member of the National Railways Group. I heard about you blockage of the funding, amounting to a total of one billion and 35 million Euro, destined for the National Railways, because you are tired of seeing public money being allocated blindly. Given the facts, I believe that you are completely right in doing so. However, for us employees, this sounds somewhat like a warning bell. What will happen to us? What does the future hold for us? Will we land up going the same way as Alitalia or Autostrade s.p.a?
As regards the funding, it is only right that there be full transparency with regard to hw it is granted, and that the funding be used for useful purposes, such as for example, maintenance on rolling stock and railway lines. In this way we could reduce the delays, a painful ailment afflicting commuters that use the rail service daily to get to their place of work.
The citizens must show display their civic conscience and show some respect for community assets such as trains, stations, etc. Unfortunately this is not always the case. There are numerous cases of vandalism, perpetrated by unmannered thugs that are equally at home carrying out robberies and burglaries.
Personally, every morning when I leave my bicycle at the shelter near the Bologna Centrale station, I am faced with a situation that is pitiful to say the least. There is excrement left behind by the homeless and the drug addicts, syringes and a pervading smell of urine, and the situation is unbearable. Much money is being spent on keeping public areas clean, apparently uselessly because the same filth is present every day.
The money is being spent badly on purchasing useless materials, wastage and useless consumption, while employees are being paid while they are not performing their duties. These are only some of the problems that result in the enormous damage and inefficiency that we are all aware of when talking about the National Railways.
We are informed by the television that the funds are being used to either balance ghost accounts, or to provide incentives for employees’ early retirement with “golden handshake” vouchers. These funds should be used solely and exclusively for the purposes of improving the company’s situation. It is with great regret that I am obliged to admit that the situation within the National Railways was far better when the company was still under the direct State control, with no intermediaries, without Confindustria and without the trade unions, however, as regards privatisation, I see anything but a bright future.
I am sure that you Sir, as a magistrate, have seen it all before on a personal basis and that you can, therefore, understand what I am talking about.
You are one of the few remaining people in Italy that are worthy of our esteem and trust.
Unfortunately we are living in precarious times as regards employment, and who knows whether, in a few years’ time, there will be any such thing as retrenchment benefits, welfare benefits and pensions and, above all, whether I will still retain my job and whether I will be able to set up a family of my own.
The more time passes and the more difficult it becomes to make it to the end of the month, between mortgages, various expenses and the cost of living. We are living in an increasingly uncertain world, with little prospect of a better future.

Kindest regards.
A.M.”

Posted by Antonio Di Pietro in Economy
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26 November 2007

Council of Ministers: Finance Bill: on its way

Friday 23 November, Council of Ministers. Here’s the account of the Council of Ministers and of CIPE, (the Committee that deals with the approval of public works) and the 150 Years Committee (for the work to be done in relation to 150 years since the Unification of Italy).
We need to think about this as well, but instead of buying flowers, we will do good work by improving infrastructure or buildings that remind us of that date, but at least we will do something that lasts, because if we use flowers, they have wilted by the following day.
As regards CIPE, we had to define the spending of the money coming from the “little treasure”, that of the decree that we approved last week, and we have used the money to show that this time, by spending the money, this won’t go in unspent balances, that is in blocked strong boxes, and above all because we are spending the money early the costs won’t go up and we are spending the money for exactly the things that Parliament has approved, so that then in the future we are not using the money set aside for one thing to spend on another.
It was an important Council of Ministers, not because of what was on the agenda, as much as some methodological issues that we tackled.
On the agenda, we approved the Environmental Code, that was having its second reading and will need more work, then we put right some International treaties, and we also approved regulations for Heavy Goods Vehicles, which is a very sensitive issue about which there are strikes happening, but we found a way forward.
A Council of Ministers that is functioning and is functioning well, contrary to all the polemics in relation to the parties that are filling the newspapers every day. Every day there’s a new one. It’s true, Veltroni has made a new party, even though then he says that there’s a whole process in forming it, but he is making it in his own image and likeness. Berlusconi is making another one in his own image and likeness, he’s giving it a different name, but by inverting the order of the things you add together, you get the same sum. We of the other parties are trying to find a togetherness so that we are not swallowed up at the same time, trying to take forward our political action. While all this is happening however we have a real country with its needs, its worries, its priorities, and on the other hand we have the Council of Ministers, like for example this morning’s that is carrying out its duty, that is governing, because it has received the trust of the citizens and also just now of Parliament, and thus has the duty to govern. Just now, in the sense that the Finance Bill approved by the Senate and the Council of Ministers and the decree approved by both Houses of Parliament say “these are the tools, go ahead, do the work and keep quiet”, and that is what we are doing: working without worrying about the daily political polemics.
What have we decided to do? We have decided to take hold of the product handed to us by the Senate in the Finance Bill, look to see if it has been turned upside down in some way or if it must be tackled serenely by the Council of Ministers in its actions, and we decided not to present hundreds of amendments, but to present them all together after an analysis and some studying. Our commitment is to say to our parties not to fill up Parliament with amendments, or the Finance Bill will be turned upside down, while we are doing the main changes directly as a proposal, as for example, the Class Action, that will have to be approved, because there’s the need for a collective judicial action on the part of individuals to be able to defend themselves against the big powers, because one by one the individuals are always defeated by the colossal powers of industry and the economy. Another example relates to the salary of the State directors, as has been confirmed in Parliament, what has to be confirmed is the idea that they cannot have fabulous salaries, even millions of euro, even to end their contract, but at the same time we need to give more equality and more dignity to the meritocracy, because there are directors who work well and there are directors who should be sent home as soon as possible.
Thus we decided to sift through the various possible amendments to take responsibility, with a single big amendment, covering those issues that it is appropriate to add to improve the Finance Bill in the discussions in Parliament.
All this is happening as a concrete action by the government, while as regards the general situation, we hope that this political scene becomes clearer, starting with a possible electoral situation, so that there can be less discussion of words and formulae, but more of facts and contents. This is where my commitment is directed, here where I am today, and I hope for a long time still, and my commitment as the representative of a party like Italia dei Valori, that is not afraid of the thresholds for the electoral quorum, but wants to have your trust and to deserve it.

Posted by Antonio Di Pietro in Economy
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21 November 2007

Council of Ministers. The Accounts of the State Railways

Meeting of the Council of Ministers on Friday 16 November. A Council of Ministers a bit below par, the type that follows the approval of the Finance Law in the Senate. There was the calm of those who had brought home an important result.
A year and a half ago the electorate gave us a Parliament with only 2 or 3 extra votes in the Senate. We’ve got the same now as we had then, so the situation in the Senate has not had a dramatic fall, it’s exactly what it was at the beginning of this term of office. At the beginning of this term of office, instead of saying “We will not be able to govern”, we took on the responsibility to govern.
To tell you the truth, going beyond the chattering: to approve the finance law without having recourse to a vote of confidence, but voting on one amendment after another, and getting it approved with this majority, is an act of responsibility and of maturity. Whether we like it or not, the Government and the coalition of the Centre Left has scored an important point.
I’m saying this even with a sense of pride, because we of Italia dei Valori certainly would have liked something extra, to do more, but when you are in a coalition, then, in the end, you have to do a synthesis and take on the responsibility to govern instead of always putting a spoke in the wheels of those who want to govern.
Thus it was a great gesture of responsibility by the whole coalition, and we found how to square the circle with a finance law that re-launches development and solidarity.

There’s always someone who complains, certainly, we would like to have our cake and eat it, but with public balance sheets in such a disgraceful situation after decades and decades of the First Republic that has reduced them to a sieve, we couldn’t do more than that.
Today we have sorted out public accounting and we have re-launched development.
Obviously we have also approved important draft laws. The most important is surely the draft law taken forward by Minister Turco in relation to the reform of the health system.
It is a draft law of the previous Parliament, but it has another look at the whole system of health services according to a rule by which health care becomes a universal right to which everyone has the right, including those who do have the economic means and those who don’t. It clears up an important point.
Let’s say the truth here as well: for the last few years the private health services have been winning in relation to public services. Thus, those who have money and get private care have a greater advantage over those who don’t have the money and have to go to the public service. They are at an advantage because they arrive first at the health service (perhaps even for an important operation) and those however who don’t have the money are not part of that system that can access the private services and they are invited to wait even for months to have a scan.
We have done a draft law that will go through Parliament, (that we hope will tackle it with serenity) with which we really establish this universal right to care in an organic way.
We have also discussed how to distribute the resources of the framework law, that of the famous “little treasure” for the housing policies. We have also had some meetings and made some agreements with the Regions.
So basically, there is 550 million that has to be distributed to the towns that have problems with evicted tenants who don’t have the economic means to find another house. We have already decided how to allocate the money Region by Region, town by town.
I did this personally and I insisted at the Council of Ministers that they give me this task so that I could ensure there is not a sprinkling of money, but that there is a system of verification while the work is being carried out.
We talked about other important matters, for example about the regulation of transport. In relation to this we discussed how to balance the books of the Railways, as this is another issue.
The Railways have a deficit and there is a very simple way to not get them into a deficit, as someone has said, by increasing the fares. Certainly, it’s easy to say, but the issue is whether the Railway system is such that it is really making the best use of the money it gets from the State and the money it gets from the fares? Is there perhaps the need for a rationalization and a complete revision of the spending regime?
In this light we have decided to take action in two ways. One is in terms of the public transport system, needed by those who go to work in the mornings, the commuters, who must not be affected by the fare structures. What can be affected and must be affected is the fare structure for quality and for the elite.
On a transnational line in First Class you need to pay what is right. But if you are getting a train as a commuter to go to work even this must be a universal service.
Certainly, you can say that we are doing demagogy, but it isn’t demagogy: it is applying different solutions to different situations.

Posted by Antonio Di Pietro in Economy
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7 November 2007

The Money of Milan People

Yesterday the City Councillor Raffaele Grassi of Italia dei Valori, made a speech in the Milan Council Meeting to ask for illumination of a financial operation of the Albertini Cabinet.
Ms Moratti was asked, given the political continuity of the two cabinets, to disassociate herself and to go on with the necessary checking on the very risky financial operations that could leave the balance sheet with a hole of more than 400 million Euro.
The administration of public money cannot be conducted in a way that is speculative and non-transparent by those who have to guarantee and protect the interests of the true owners of that money: the citizens.

Text:
”In the last few days I have come across an affair that started in 2005 when the city administration at that time, under the leadership of the former Mayor Albertini was faced with the need to find 100 million Euro to cover current spending transforming some current debts with certain banks, drawing up new contracts for mortgages so that they changed from favourable fixed rate interest rates that at that time were very low to variable rates. In the last two years these have seen a growth in interest rates on a world scale and they are showing exposure for all families. It is possible that this very strong consequence, could happen in relation to the city administration, even because the mortgages arranged with the new contracts have a 30 year limit.
I believe that it is an exposure of the so-called “derivatives” that the Albertini administration has always done in his task of public administrator. Given that the former Mayor Albertini has always complained about being an “administrator of a condominium”, I say that the administrator of a condominium has not done what he should have done, that like a good father of a family, he should have made investments that were prudent and clear.
Yesterday, 5 November, at the Council meeting I made a speech to denounce this fact, in which in fact we complain, on the part of the City Council and the Councillors of the removal of the power to control. We believe that the councillors should perform a form of control, whether they are in the majority and above all in opposition, so as to have the possibility to control the management of what the Cabinet does in relation to the administrative acts.
Unfortunately, the Albertini cabinet, the majority councillors, but above all, those in opposition did not even have this possibility, since the documents relating to this operation were kept secret by Albertini himself for a month, the natural time for doing this operation with the banks.
However I believe that we must not criticize the behaviour of the previous administration which may be legitimate to a greater or lesser extent, but we must ask what is the aim of the city administration, if the public administrators are delegated to speculate with the money of the people rather than carry out a whole series of interventions and give back the wealth collected in taxes as services to the citizens. This is the primary task of a public administrator.
If then we enter the mine field of financial operations, an eloquent example is what happened a few years ago between the ATM and the Del Monte bonds, in which 10 million Euro was lost at a time when the renewal of the work contract of the workers of the transport company were at risk while the directors were doing financial operations that then gave negative results.
I believe that in the near future Mayor Moratti must come and tell us at a Council meeting how things have gone, given that even the fact that the current majority is a continuation of the previous one, in which the Mayor has changed, but the same deputy Mayor, cabinet members and some of the councillors in the majority.
Meanwhile there are people who can be asked to give an account of what has happened, and I believe that the Mayor must come and tell us in the Council meeting. If this doesn’t happen, then as a member of Italia dei Valori I am formally committed to ask for a Committee of Enquiry so as not to lose precious time because never before this moment has it been more true, losing time means also losing money.
I will formalize this request as soon as possible with the appropriate people, but I have the impression that there will be an attempt to wriggle out of this by having a debate in the Accounts Committee. This too is an important body for discussing this, but I believe that in these sessions, where perhaps we will discuss this matter we need the presence of Mayor Moratti who has the duty as there is no member of the Cabinet with responsibility for Accounts.

Posted by Antonio Di Pietro in Economy
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6 November 2007

The Honourability of the Directors

In August I wrote on this blog, an article (Geronzi: a step back) in which I asked for the suspension from his position of Cesare Geronzi until the final verdict is given, so as to safeguard the international reputation of Italian finance. The call fell on deaf ears.
I am publishing a letter by Antonio Borghesi, a deputy with Italia dei Valori. This letter is a further attempt to encourage the news media and the politicians to take up the discussion.
In the deafening general silence, on 10 October, Italia dei Valori put forward a draft law on this matter.

”It is unacceptable that at the top of important financial institutions, there are people who have lost the required honourability as they have been convicted of fraudulent bankruptcy. International credibility in our financial and banking system is needed and now we have decided to take action.
This is not the first time that I am intervening on this scandalous affair that has already gone beyond the boundaries of our country since the news has been reported by CNN.

At the top of two important institutions, namely Capitalia and Mediobanca, there’s a person who has lost the required honourability. I am referring to Cesare Geronzi, convicted at the first level for fraudulent bankruptcy and sentenced to eight months, and now considering recent happenings that see him being sent for trial for fraud in the collapse of Parmalat.

At the moment, the administrators of banks and financial institutions who have lost the required honourability must be suspended from their duties, however the Board of Directors has the power to reinstate them, if they feel that if they continue to have the trust of the shareholders there can be no obstacle.

But I am thinking: what counts more? The shareholders of a bank or the protection of savings and of savers?
It seems evident, even following the serious financial happenings that have been occurring in recent years, the need for a more rigorous behaviour from the investment companies and the banks in relation to the Directors, the CEOs and the Auditing Supervisors when they are convicted, even though it is not definitive, for banking and financial crimes, for the crime of false accounting, for crimes against public administration (embezzlement, abuse of office), crimes against public trust (falsity of money), against property (theft, robbery), against public order (associating to commit a crime), against the public economy and for tax matters.
I have decided to take action, by presenting a Draft Law (Proposta di legge 3135) with just two articles to modify the TUB (Testo Unico Bancario) and the TUF (Testo Unico della Finanza) so that the shareholders meetings cannot decide to reinstate people at the top of the company who have been temporarily suspended because of a conviction that is not yet definitive, until the criminal proceedings have had a definitive verdict.

This is a cautionary measure that is completely legitimate. We need international credibility in our financial and banking system.”

Posted by Antonio Di Pietro in Economy
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5 September 2007

98,000,000,000 tax request

I have received many letters about the news given in Genoa’s il Secolo XIX about the 98,000,000,000 euro in unpaid taxes by the concessionary companies to the detriment of the State Monopoly Agency, the structure that controls them. I’m publishing one that summarises the others.

Dear Minister,
I wanted to ask you why you don’t devote a post to the mega tax dodge of 98,000,000,000 for the State Monopoly? By now some time has gone by since the news came out on Beppe Grillo’s blog. 98,000,000,000 is an enormous sum: it’s three times the value of the gold reserves of our country, exactly what the President of the Council wanted to sell off to reduce the public debt. If they got this tax paid with interest and appropriate fines we would get to a sum of at least 150,000,000,000 euro. That is much much more than all the gold reserves of the country, and with this sum it would be possible to decisively reduce the Italian public debt that is the highest in Europe, or reduce the tax burden that is suffocating the country and economic progress! I offer you greetings and I wish you good work in the interests of the citizens.”
Francesco

To the people directly responsible: Romano Prodi, Tommaso Padoa Schioppa e Vincenzo Visco, with carbon copies to all the Ministers, I have sent a letter to be discussed at the Council of Ministers. I will publish their responses on the blog. I would point out that, according to what is written in il Secolo XIX, the Court of Accounts has asked the concessionary companies for a few tens of thousands of millions of euro in compensation for the damage suffered by the State and the director of the Monopolies has current proceedings for 1,200,000,000 euro in damages.
It’s not possible to ask citizens to pay taxes and at the same time, to not give responses in relation to 98,000,000,000 euro of unpaid tax.
Just today, an initial response to this issue has been given on the Government's website.
Posted by Antonio Di Pietro in Economy
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4 September 2007

Cutting Public Expenditure

I'm publishing an interview with la Repubblica that appears on the front page:

ADP: “Last year my Ministry reduced current spending more than tenfold, excluding personnel costs. Having said that I welcome anyone who can help me find a solution for making further improvements.”

Repubblica: And yet your Ministry is among those that could be asked to make further sacrifices.
ADP: “I am available to the Minister of the Economy, but I would like to remind readers that since I took on this position I have reduced all the external consultancies, and there were so many of them, and I brought the work in-house. I found whole packets of studies on “how many angels can dance on the head of a pin?”, many of which I haven’t even paid or I sent them to the Court of Accounts. There was also a nucleus of people, the so-called extraordinary commissioners, that I sent home. One had been appointed for each job named in the framework law, a folly. Then I’ll give you another example: the Ministry paid 23 euro a month for each employee for email. Today it’s free.”

Repubblica: So it’s up to the other ministries to make cuts?
ADP: “As I have already explained I am willing to cooperate. Having said this I think that the government should give a good example on three fundamental issues: It is necessary to cut current spending and stop spending that is out of control; eliminate waste and favouritism connected to politics starting with Parliament and ending up with the local authorities and I would abolish even the Provinces and the Mountain communities; finally I would make the bureaucracy more efficient by eliminating useless procedures. To be clear: after my signature an ministerial document “needs” another 42 signatures. What’s the point? These are the three steps needed to get credibility back. Once this has been done, the struggle goes on against tax dodgers but explaining to citizens that if they don’t pay taxes they go to prison. And every euro recovered from tax dodging must go to reducing taxes.”

Repubblica: So you are in agreement with Veltroni who is asking for a reduction in the tax burden starting with this year?
ADP: “I say that if this year we recover 3,000,000,000 in taxes that have been dodged, every euro recovered must go to the reduction of taxes. Cutting expenditure and reducing taxes must go hand in hand because they are two sides of the same coin, but above all they can’t wait another minute.”

Repubblica: Do you fear that there will be cuts to the investments that your Ministry is planning?
ADP: “When I arrived I found 270,000,000,000 euro for investment set out in the framework law. But that was money that was approved, in reality there wasn’t a lira. I have done a spending programme for 5 to 6 thousand million a year. This is the amount I have asked for. However, be careful not to cut spending on investment in Infrastructure because this is money that is looking to the future, they mean earnings, not losses.”
Posted by Antonio Di Pietro in Economy
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28 August 2007

Fairness in the tax system

In the next few weeks, discussions about the details of the budget will start.
I think the topics to be discussed are clear: reducing the public debt, consolidating iinvestments in infrastructure and lowering the tax burden, together with a determined fight against the tax dodgers.

As a Minister of this Government and as a representative of Italia dei Valori I will ask the executive and Parliament to make a central part of the 2008 budget the reduction of the tax revenue as percentage of GDP, an objective that is possible if we continue the fight against tax dodging. Continuing with decisions in this direction, it will be possible to reduce taxes for tax payers.

We need to be sure that everyone pays so that everyone can pay less. This must be our main commitment. At the same time, some of the resources must be used to reduce the public debt and for investments to support development. To reduce the debt also means cutting spending on interest payments, which is particularly important at a time of increasing rates. This will thus free up resources to be used for investment. In particular infrastructure investments must not only be seen as a cost, but as a productive commitment that can give rise to a reservoir of resources and create better conditions for the economic development of the country.
Posted by Antonio Di Pietro in Economy
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1 August 2007

Geronzi: a step back

photo corriere.it
What can’t have escaped anyone’s notice is the different political and media weight given to two facts.
The first is the intercepts of 6 parliamentarians for which the authorisation to use them in judicial proceedings was asked by Clementina Forleo, that has been on the front pages of the newspapers and the TV News services for some weeks.
The second, the order to Cesare Geronzi to stand trial for the Parmalat crack, has been ignored by national media, by the parties, but however it has been reported in the international financial press.
It is worth remembering that Cesare Geronzi has also been convicted at the first level and sentenced to a year and 8 months for preferential bankruptcy with Italcase. Cesare Geronzi is currently the President of Capitalia and President of the Supervisory Council of Mediobanca. A position of great power and responsibility. A role on which depends the equilibrium of Italian finance. I don’t believe that politics can pretend nothing has happened and look the other way. I can’t believe that the media can minimize, as is happening now for motives that I don’t know, but that are probably hiding connections between the banker, certain parties and certain publishers.
We take it out on politicians whose possible guilt is still to be proved, for whom it is however correct to ask for authorisation to use the intercepts, and we are ignoring another fact that is a lot more serious.
Cesare Geronzi must take a step back while waiting for the final verdict. He must do this for the international reputation of Italian finance, and out of respect for public opinion.
Posted by Antonio Di Pietro in Economy
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28 June 2007

Europa 7: Let’s apply the law

Italia dei Valori takes note of the government’s wish to resolve the Europa 7 affair. The amendments presented by Italia dei Valori and by a series of political groupings within the majority, make it possible to achieve the objective that is even shared by the Executive.
These amendments don’t have obstacles on the constitutional front, nor under the Community laws.
The only way to fulfil the constitutional law and the obligations to the Community is to approve them.
As regards the constitutional legitimacy, the amendments give due attention to the Constitutional Court judgements n. 466 of 2002 and n. 420 of 1994, both of which have been unimplemented for a good 13 years. As regards Community laws, the Council of State, at the instigation of Europa 7, has already identified 10 points on which the current regulations of the Italian radio and TV system does not appear to be in line with Community laws.
The European Commission has declared the Italian Government to be in the wrong for the special rights given to Mediaset as regards the possibility to continue holding on to the Retequattro frequencies, even though it has not received the relevant concession, as well as the possibility to acquire new frequencies, reserved just for operators who are already in activity.
The Majority must do its duty and restore the use of the frequencies that are today occupied abusively, to the bodies to which they have been assigned. There is a paradoxical hypothesis, that some have put forward, that to release the frequencies to Europa 7 would be a recognition of a “special right” to them.
They are the legitimate holders of a national concession that was awarded after a competition procedure, in accordance with Community law.
We need to restore the position according to law, following the principles of civil law. It’s not acceptable to put forward the idea of the danger that the amendments presented by nearly all the bodies within the majority can open the way to compensation for further damage relating to that already suffered by Europa 7 On the contrary, the amendments ensure that Europa 7 gets a specific pay back, the release of the frequencies, with the effect of reducing the damage that otherwise the State would have to pay in cash.

Posted by Antonio Di Pietro in Economy
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31 May 2007

Draghi and the Chinese Boxes

In the report he gave today, Mario Draghi, Governor of Banca d’Italia, pointed a finger at the complex organizational structures used by Italian companies quoted on the Stock Exchange, indicating pyramid structures as a cause of poor transparency.
It’s a situation to which there must be remedial action by modifying both the regulations relating to companies as well as those defining the operations of the Authority that regulates and controls the market As a Minister and as a representative of Italia dei Valori, I have emphasized in different circumstances the need to change the mechanism of the Chinese Boxes, to resolve conflicts of interest in the economy, and I like the Governor, see these always present in the mechanisms of contorted shareholdings.
For the umpteenth time, I repeat, that these are actions to be taken immediately, to avoid closing the stable door after the crafty ones have escaped. We need to supply the right protection to the market and to consumers.
It is exactly the constant reference to the protection of consumers that is an underlying theme of Draghi’s presentation.
Bank mergers will not be useful operations if the families, the clients and the small-scale shareholders don’t get the benefits.

Posted by Antonio Di Pietro in Economy
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20 May 2007

Parmalat and throwing in the sponge

Today, as a guest of Dr Bondi, I was at Parmalat. Here is the text of my speech

“Parmalat is a company that is growing in terms of profits, receipts and its net financial position that is now back in the black with profits of 87.4 million euro as reported in the most recent quarterly declaration which is very good.
Its shares have been appreciated by investors and they have reached 3.3 euro compared to 2 euro at the end of 2005, almost doubling in value.
Thanks for this situation must be given to the Administrator, Dr Enrico Bondi and to the management and to all those who have believed in the future of a company that seemed finished.
I would like to call to mind that Parmalat represented the biggest financial collapse of any company in Italy. A collapse that could be foreseen in the balance sheets, just by looking at them. The responsibilities are of the whole system.
Where were the controls of the banks that placed Parmalat bonds with their clients up until a few days before the collapse? Where was Consob and the Bank of Italy?
All they had to do was make a public denunciation with evidence to back it up, as they had all the elements of the analysis, to stop the destruction of the savings of tens of thousands of small investors.
The Parmalat scandal, together with others that have followed, has had significant effects in the loss of credibility of the country in relation to abroad.
Italy is in the last position for foreign investments and the reason is not the presumed interference of the government, as has been hurriedly affirmed by our monopolists without money, but it is due to the lack of rules, of checks, of attention to policies, to financial information that is crystal clear and understandable to citizens.
Italia dei Valori has confidence in your company and in the reform of the Stock Exchange and the Consob with the introduction of true governance rules to protect the market.
I just want to mention a series of situations that give rise to the lack of trust of investors, to bankruptcies, to income from position, to the destruction of value.
The mechanism of Chinese boxes with the possibility to control a company without having the majority shareholding and often with laughably small percentages with the transfer of dividends of 90/100%, dividends that are taken away from investments and employment.
The blatant and widespread conflict of interests in which what is controlled and what is controlling have the same people in the Boards of Directors of the companies, even present as managers.
In whose interests are they acting, these Directors? Always in the interests of the one that controls. And the small shareholders of the company being controlled just take note of their losses.
Stock options are a true means of stripping down a company in favour of the few and not in favour of all those who create the value.
The lack of governance rules to protect the small shareholders and the basic impossibility on their part to group together because of the current rules.
The political system is responsible for this situation with pardons, false accounting, decriminalization, prescrizione. With a bitter taste in my mouth I have to say that politics is more often on the side of the institutionalized thieves than on the side of the citizens.
The most recent example is the draft law that would have seen a reduction in the maximum penalty for the crime of fraudulent bankruptcy from 12 years to 6 years.
This law would have seen the absolution of people like Tanzi and Cragnotti thanks to the reduction of the system of legal time frames that came in with the ex-Cirielli law. Italia dei Valori for the moment has managed to block its passage. But we are alone.
Parmalat has still not concluded its trials but I personally want to assure Dr Bondi and the citizens who are making the civil claim, that they have my complete willingness to be available.”

Posted by Antonio Di Pietro in Economy
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25 April 2007

Mario Monti responds

In il Corriere della Sera, Mario Monti has responded to my comment on the article “Structural Counter-reform”:

“To a great extent I agree with what Minister Di Pietro said: the pressing need for reform aimed at “putting the economy at the service of the citizens”, the statement that “Italy needs economic reforms, new rules to protect small scale shareholders, those who save as well as consumers, so that it can become part of true capitalism”, and the list of topics to be tackled.
The Minister knows how to combine vehemence and efficacy and I am confident that he will succeed in getting this line adopted by the government and in the majority.
Readers will remember that this is an approach that I have been calling for for some time: a bipartisan agreement. And it is an approach to which I have tried to contribute on a European level.
There are however two points that I don’t agree with.
First, that there has been no reform in Italy up until now, seems to me an “ungenerous” (as the politicians would say) proposition, especially when considering the current government and the previous ones of which Antonio Di Pietro has been a part. Certainly a decisive acceleration is needed.
Secondly, I believe that it is legitimate to call for reforms for a more rigorous market economy and at the same time to express perplexity about the change of rules while the work is going on.
Finally I hope that the government, while avoiding bringing in these changes (golden shakes), brings in other initiatives as suggested by Di Pietro, against the golden hand-shakes.”
Mario Monti

Posted by Antonio Di Pietro in Economy
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23 April 2007

Reform and Counter-reform

Letter sent to il Corriere della Sera:

Dear editor,

I’m sending you my comments on the article “Structural Counter-reform” by Mario Monti published 22 April.
“In Italy in matters of the economy it is the status quo that rules. An immobility guarded assiduously by those who because of their positions or authority should be promoting reforms, laissez-faire capitalism, authentic market regulation, the strengthening of the controlling Authorities.
Instead they create obstacles for me, who wants to place the economy at the service of the citizens and claim that I want to interfere with a so-called ideal world that regulates itself by magic. People are writing about a Structural Counter-reform being put in place by the State, and about a dark danger.
A partisan evaluation is of itself impossible, because before the Counter-reform, there must be the Reform
I return to the sender, terms like “great mental confusion”, “absence of leadership in the government” and “unscrupulous plans”. The examples of Abertis and Telecom are cited as a deliberate attack on the market by the State, on the sacred rules of the economy. But what rules are they talking about?

Perhaps of the Chinese boxes, the stock options, the mega-salaries, the massive golden handshakes, of the blatant conflict of interests with Directors sitting on six or seven Boards of Directors, of the impossibility for small scale shareholders to have representation, of the investments that are not made even though motorway tolls are increased, of the buying of companies made by casting them into debt?
They forget to point out that in the case of Autostrade and Telecom, what is in the balance are two networks that are fundamental for our country: the motorways and the telephone backbone. Should the State not express an opinion? Well what is the State for?
The market that is so frequently talked about is the usual fig leaf of private interests. Autostrade and Telecom are in fact two monopolies, protected sectors for which the State grants concessions, the market is another thing.
Italy needs economic reforms, new rules protecting small scale shareholders and consumers, to enter true capitalism.

That capitalism that rewards risk capital and sends dishonest directors to prison, as has happened in the United States for Enron.
Recently the Financial Times has published a full page article about the chronic lack of foreign investment in Italy explaining that the main reason for this is the lack of firm regulations.
Italy is the country where false accounting is not punished, where administrators convicted of bankruptcy stay in post. This, dear editor, is the true dark danger.”

Antonio Di Pietro

Posted by Antonio Di Pietro in Economy
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21 April 2007

Telecom is not for sale

Text:
“Today I am presenting my usual report but not on the Council of Ministers: at the moment there are the party conferences for the DS, Margherita and lots of other political meetings.
It’s a moment for talking politics, so there’s no Council of Ministers. However, there’s still lots happening and lots of decisions to be taken.
Allow me to return to the Telecom affair. For some time I have been saying that the telephone network, the networks for water, for the motorways, for the railways, that is the most important networks for the country cannot be treated like apples and pears.
If a network is in the hands of private enterprise, they manage it according to their own interest, investing only where there’s most gain: if they doesn’t get enough income from the utility bills they don’t take water to a certain village, if they don’t get enough profits, they don’t install broadband and so on.
You see when it’s a matter of services that are used by everyone, the rules of the market, often talked about, are not enough if they don’t guarantee a service to every citizen.
Once we’ve established the principle that Telecom manages a fundamental network, because without the network communications cannot be passed and therefore there would be a lack of democracy, how come there is such a lot of talk about it at the moment?
Because they say that Tronchetti Provera is selling Telecom Italia. It’s not true! It’s not Telecom that’s for sale.
Telecom is a company with 100% of its shares and Tronchetti Provera is selling only the 15% that he controls.
There would be no problem if we had normal laws, but at the moment it is organised so that whoever has got a relative majority of the shares can control the company. Because the majority shareholding is disparate and cannot be present at the shareholders meeting.
Thus in reality, by controlling a tiny percentage, 15%, it’s possible to control 100% and so make decisions about what investments to make, how to distribute the profits, who to elect to the Board of Directors, when and how to sell one’s shares and in this case, where to install broadband and where not.
Have you ever seen a company being controlled by 15%? It happens in Italy. Not for all the companies, however, only for those that manage services for all the citizens.
They say to the citizens ‘buy shares and create a cattle ring, we will manage the money that comes from the utility bills, from the payments made’. As I said, in this case it’s only 15% that is handed over. Where is the clever stuff? Why I am saying that we find ourselves here with another “wide boy game”?
Because Tronchetti Provera sells his 15% to the “strange strange Mexican” at 3 Euro per share, while the market value is 2.2 Euro per share. You’ll be asking ‘how come someone would pay 3 euro for something costing 2.2 euro?’
That’s just because, as I have been saying many times, by selling his shares, Tronchetti allows the buyer to have control of Telecom.
It is true that that means shelling out nearly one euro extra per share, but it’s also true that it’s enough to buy a small percentage of the company to be able to control the whole thing.
If they were to buy it on the market they would have to launch a takeover bid at at least 2.6 to 2.7 euro per share, and for more than 50% of the shares. Imagine how much money they would have to spend. Instead, they pay a bit more per share and they buy just 15% to control the whole company.
Who loses out? Pantalone, that is the Italian citizens. First of all the small scale investors: if they had launched a take over bid for Telecom shares, the shareholders could sell their shares at 2.6 or 2.7 Euro.
Secondly, all users because the network would be put into the hands of those who want to control it only for their own personal interests and it will be developed only where it gives the economic returns.
This is a private matter being carried on with great lack of concern, only for financial rewards, where there is someone selling for their own gain without giving the market the possibility of establishing the just price.
All those who come to tell me that my behaviour, the behaviour of one who only wants to apply the rules, is going against the market while negotiations are going on, are out of order. They are the ones violating the free market.
The market need the shares to fluctuate because of a takeover bid open to all, while this is a happening in the hands of a few.
Those who violate the rules of the market, on a substantial scale even though not on a formal level, are doing this crafty dodge. It’s not myself, as Minister of Infrastructure and the members of Italia dei Valori. We want to defend the rules in the interest of the citizens.”

Posted by Antonio Di Pietro in Economy
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16 April 2007

Rozzano-Telecom Italia: a starting point

Tomorrow at Rozzano there’ll be the shareholders meeting for Telecom Italia. Thousands of small shareholders will be there and just for once they will be able to make their voices heard. Hundreds of people will take the floor to speak and it is likely that a single day will not be enough for all the people taking part.
Tomorrow the actions will be a trial against the lack of rules that afflicts Italian capitalism and that is a barrier to investments from families who have already been “burned” by a series of scandals and losses, and from foreigners.
In fact Italy is in the bottom position for investments from abroad. The small amount that comes in is usually looking for an income from the position, small scale stuff.
An economy that in fact only protects the usual ones does not allow Italy to start to develop. In recent years we have missed many trains ranging from food, to ICT, to Chemical industry, to large scale distribution. Now we risk losing even telephony, and connectivity.
The country is always poorer and the once-upon-a-time-capitalists without capital are always richer: it’s a vicious circle that needs breaking.
I can’t officially delegate my vote to Beppe Grillo in the shareholders meeting because of the current Consob rules, but in an Ideal World I can. Go for it Grillo! Go for it as well, all the small shareholders!

Posted by Antonio Di Pietro in Economy
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12 April 2007

Let's give a Voice to the Small Shareholders

Text:

“Today there’s no Council of Ministers, it’s Wednesday 11 April and this is a meeting with you, because there’s an extraordinary situation being created around certain very delicate problems concerning the credibility of the institutions.
I’m going to talk about one of these in a separate message. That relates to the position taken by the State Advocacy against the Milan Prosecutors concerning the abduction of Abu Omar.
According to the State Advocacy, the fault for what has happened is to be found in the Milan magistrates who are discovering the abductors and not in those who did the abduction who committed the crime. The other very delicate question is the Telecom Italia affair. Today politicians are asking: should we intervene or not? I believe that if there’s not action taken quickly enough, it’ll be too late. But as usual there’s only discussion.
On 16 April, there’ll be the Telecom shareholders meeting. All shareholders should participate. In fact it’s the usual ones who go, the ones with a tiny percentage of shares but who govern the whole company.
On 16 April at 11 am, I’ll be there at Rozzano. There’ll be a decision to sell and to whom. In fact, there’ll be a formal agreement to accept what has already been decided by the usual wide boys of the moment.
I have tried and I am still trying in every way, to intervene to ask for an urgent decree on two fundamental topics:
- first, that the network is broken off from the service company and that it cannot be transferred from one body to another without the relevant ministerial authorization, as has been done for the motorways. It’s possible to do the same for the telephone network.
- second, that action is taken to eliminate the game of Chinese boxes, that allows for a body that holds just 18% of the shares in a company to take any decision about that company.
The Chinese boxes are permitted by law and this makes it even more serious. We need a decree, but I don’t think that the politicians have the strength and the humility to do this and I’m sorry about that.
However, there is something that can be done on 16 April. Beppe Grillo and I in a small way have tried to gather proxy votes to represent a few thousand shareholders in the meeting.
If only we hadn’t even tried.: they have told us of such an exasperating procedure that in substance, those proxy votes cannot be used.
A special law has been passed to prevent the many small shareholders from exercising their power within the company, so as to allow the few to control everything. This is how serious it is.
But, as I said, on 16 April it’s still possible to do something: take a half day holiday, those of you who have even a single Telecom share and have a picnic at Rozzano from 11 am onwards. Before that go to your bank and get them to give you the certificate that allows you to exercise your right to vote.
Come in procession to Rozzano on that day. A few thousand people who are accredited and who ask to speak will make the turn the tables. It would be a political happening in the noble sense of the word, smashing the agreements and leading to a reflection.
On that day, let all those with Telecom shares exercise their rights. Not so much for the value of the share but for the symbolic value of a democratic gesture to make own’s voice heard.
However, remember that you have to go to your bank and get them to give you the document, the certificate that gives you the authorization to participate.
I believe that united we are strong: when faced with the politicians who do not have the courage to react, when faced with the craftiness of the well known wide boys, the democratic strength of the people can still overturn the result.”

Posted by Antonio Di Pietro in Economy
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10 April 2007

A decree for the small shareholders

I’ve asked Romano Prodi to have a decree to modify the Draghi law and give a voice to the small shareholders. However, Italia dei Valori will present its own draft law.
I am supporting the initiative that Beppe Grillo is promoting on his site, but the number of people supporting this cannot have significance because of a bureaucratic law that we must get changed.
The system must be reformed, in particular the Chinese Boxes, that mechanism of company entwining in a cascade that allows Tronchetti Provera’s Olimpia to control 75% of Telecom Italia’s Board of Directors with 18% of the capital.
The small shareholders should group together. I have started to move in this direction but Consob has sent me a long letter explaining that a complicated and messy procedure is needed.
And thus Grillo, who does not have the specific qualifications required is not able to speak in the name of all at the shareholders’ meeting.
As well as the modification to the Draghi law, I have a second proposal. When it’s a matter of networks that are fundamental for the country, if there’s a sale, that’s possible, but the one that buys must obtain new authorization from the State to use the network.
The State must evaluate whether there are the necessary conditions. Obviously to get to this point it’s necessary to dismember the network and place it in this authorization regime.
All this is needed to avoid things like the use of the network to pocket the dividends rather than to invest to improve the service. I would not want to see Telecom landing up with new “wide boys”, perhaps from a broader neighbourhood. This is why we have to take action before it is too late.

Posted by Antonio Di Pietro in Economy
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3 April 2007

Telecom is an Asset of this Country

Tronchetti Provera has a problem. Olimpia has shares in Telecom Italia that it is valuing at well above the market value. On the Stock Exchange, Telecom is at slightly more than 2 Euros. But Tronchetti wants to sell at 2.92.
This is the main reason why he has not found a satisfactory negotiation with the Italian banking system and he is thinking of handing over Olimpia to the AT&T (USA) and to America Movil (Mexico)
The question that could be asked by the citizen or by the myriads of small shareholders is: “Why can Tronchetti ask 2.92 and the other Telecom shareholders have to put up with the constant losses of the last few years and sell at the market value?
The answer is in the ability that Olimpia has to give direction to the governance of Telecom, thanks to the current rules that allow the shareholder with 18% of the shares to impose their choices on the remaining 82%.
Whoever buys Olimpia can thus “command” Telecom. The minority governing in place of the majority: a paradox. A few gain, almost all lose. This must no longer be possible. The small shareholders must have representational structures. And certain mechanisms allowed on the Stock Exchange, as for example the “Chinese boxes” must be abolished.
Beppe Grillo has started an initiative called “share action” to give him the proxy votes of the small shareholders at the Telecom shareholders meeting.. I have decided to join this.
Telecom is a fundamental asset for Italy and it cannot be an object of financial speculation and I will reaffirm this at the urgent meeting I have requested with the President of the Council, Romano Prodi. At this meeting I will suggest we have a regulation, perhaps as a decree, to review the rules of governance and to prevent, straight away, that a minority can decide in place of a shareholder majority.

Posted by Antonio Di Pietro in Economy
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22 March 2007

Companies and Tax

This government’s Budget and tax measures are producing good results.
However I consider the tightening of the tax regime for those who already pay taxes to be unjust and contrary to the rekindling of the country’s economy and in fact to be an incentive for capital and production activities to flee the country. Unfortunately there are numerous examples.
One of these is the decision to retroactively make the cost of a company car not deductible. Thus the companies with a fleet of cars must commit to “pay back” to the coffers of the State for the years of deductibility that they have made use of.
This measure and others aimed at ‘punishing’ the honest tax payer instead of taking action to unveil the true tax dodgers leads to only a temporary benefit, with a series of negative consequences: suffering and even closure of the companies with low levels of liquidity and with little access to credit, indebtedness to the banks for those that are more solid, lowering of the levels of regular employment as an employee, flight of our entrepreneurs from the country.
In fact certain tax measures deliver companies into the hands of the banks. The objective of Italia dei Valori is certainly not to give unilateral strengthening to the banking system and to weaken the entrepreneurial structures, but rather to strengthen the economy and attract investment from abroad.
Italia dei Valori will take action to see that certain measures are revised. The Tax Office cannot allow itself to only be strong with those who are honest and to ignore tax dodgers.

Posted by Antonio Di Pietro in Economy
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15 March 2007

Handing Over Telecom Italia

Pirelli has put up for sale its 18% portion of Telecom Italia. It’s the final episode in a privatization that started off badly by getting the company into debt and finishing off worse.
The revenue, the employment, the international presence, the participation of the biggest Italian companies have all been impoverished by a series of entrepreneurs who have not put up the capital.
In a few years we have seen Agnelli, Gnutti, Colaninno, Tronchetti Provera, and Benetton in turn with results completely below those of the preceding public management of the company even though that was criticized.
Telecom is strategic for the development of the country and certainly we cannot allow Pirelli to have an auction in the dark, to the best offer, put forward by whoever, without checking up on the position of employment and on the strategies that this choice can imply.
In the last few years we have seen a company that has handed out almost all its dividends to its shareholders, maintaining and increasing its own debt and thus putting off necessary investments. A behaviour that seems to me to be showing a lack of responsibility.
Telecom is an example of how privatizing without rules and without limitations leads only to a worsening of the service and the impoverishment of the system in the country. I hope that these experiences can serve as a lesson for the future.

Posted by Antonio Di Pietro in Economy
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14 March 2007

Stop Increases in Motorway Tolls

I’m publishing my interview with la Repubblica about halting increases in motorway tolls.

ADP: For years the motorway tolls have been increasing and no one has been raising the point. All the increases have been recognised even though the investments have been missing. The causes can be discovered in the way these monopolies were handed over, and also in the behaviour of the parties, including those in the majority coalition, who are recipients of generous donations, no doubt that they are legal, handed out by Autostrade on the eve of previous elections. To increase the tolls each year was a way of proceeding that was never written anywhere. The tolls have gone up even in the absence of those duties that the management are bound to carry out, that we have valued to be about 3,800,000,000 Euro.

Repubblica: What do you think Minister? Yet more legal proceedings?
ADP: Do they want to go ahead? To have a war with me? Let them do just that. Do you know how many cases I’ve seen in my career that started off and then went crooked? Think of one above all: Clean Hands started off exactly liked that, from the denunciation of a journalist who wrote an article that was not pleasing. That triggered the action for defamation and I went right to the bottom of it.

Repubblica: According to ISTAT statistics in the10 years from 1997, the tolls have increased by 31.4% compared to inflation of 23%. That surely is someone’s fault.
ADP: The fault is in the way chosen to do the privatization, transferring such an important monopoly. The procedures should have been flanked by a much more complex formula to revise the agreements. And I have done nothing more than to intervene in the system of concessions.

Repubblica: That 3,800,000,000 Euro that is missing, what should it have been used for?
ADP: For example to carry out the work to improve the network: in certain cases we’re talking of the lack of the construction of a fourth lane or of important exit roads. Work that could improve the life of the motorist. We are talking of a monopoly where the concessionaires have asked for and obtained almost everything they asked for . That’s enough now.

Repubblica: Have you encountered resistance within the government? Basically, has it been difficult to put a stop to the increases?
ADP: There was a great moment of confrontation with the executive. Anyway the whole government came round to being behind my decisions. And no one has questioned my approach. The problem is certainly not there…..

Repubblica: Well where is it then?
ADP: Most of the resistance is hidden in the party system which has risen up as a result of pressure from this lobby.

Repubblica: How can that be explained?
ADP: Many parties have been generously financed during the last elections…

Repubblica: You are talking of Autostrade, that gave different generous contributions, absolutely legal, to the parties. With rare exceptions: for example the Green Party and the PRC refused the contributions.
ADP: Yes. They even sent a donation to me. But I sent it back.

Posted by Antonio Di Pietro in Economy
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13 February 2007

Stop charging for mobile top ups

I'm publishing the statement from Salvatore Raiti, an Italia dei Valori member of the Lower House of Parliament, about charges for mobile phone top ups. A statement that I share in wholeheartedly. The interests of the citizens are always to be put before those of the lobbies.

"In the Bersani decree about liberalization there is an important cut to the additional costs on telephone top ups. This is the first and most obvious signal in contrast to the powers that be in favour of the rights of the consumer.
Now it seems that this measure is about to undergo a swift stop because of a possible amendment to article 1 of the decree, currently being examined by the Productive Activities Commission.
Tomorrow, 13 February, by midday we should know which of the colleagues in the Ulivo have placed themselves against the interests of the citizens, who have already paid too much for an unjustified and disproportionate tax, imposed by the telephone companies, who have hidden behind incomprehensible technical problems so as not to rapidly adjust to the measure.
My invitation to my honourable colleagues, whose names are not known, is to correct their position in time to be fair to the consumers, who must remain our absolute priority. To put off even by just a few weeks, if it were to go well – but it could be a question of months – the date for this measure to become effective, a measure that could facilitate the citizens, to meet the needs of the big multinationals would be inconceivable.
I appeal, as a secondary point, to the good sense of my colleague Lulli, the presenter of the decree, to whom I ask to use less elasticity in evaluating the motivations that are expressed by the telephone companies however justifiable they are. This must not be put before the rights of the citizens.
In this case, their right, anyway recognised by a broad consensus of Parliament, Government and Authorities, is to stop supporting a mechanism that is perverse and iniquitous.
I ask my honourable colleagues to be coherent. We have got a commitment with the citizens. Let us maintain that commitment! !"
Salvatore Raiti

Posted by Antonio Di Pietro in Economy
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21 December 2006

Autostrade-Abertis

I'm attaching a translation of the Ansa transcription:

“I am here to talk to you about some results from the Ministry of Infrastructure.” Antonio Di Pietro is broadcasting on YouTube, the world’s leading site for signed broadcasting on the Internet. It’s a video message to explain “why the Minister has made all this fuss” about the merger between Autostrade and Abertis.
Di Pietro is facing the camera and standing in his studio in front of what seem to be the flags of Italy and Europe, for an amateur film clip called ''Autostrade - Abertis'' lasting slightly more than 4 minutes which can be seen via a link from his own personal Internet site.
In this way, he is relaunching an appeal to the motorway concessionaires to stick to a “pact, a pact for the country that we are asking for - he explains – to those who every morning are authorised to take your money to fill up their pockets.”
The minister, who points out the reform of the concessions in the Finance law, is referring to the motorway tolls and he indicates that it is right that there is a profit for the companies, and he is talking directly to the concessionaires and asks:
“All that you gain, reinvest it in the infrastructure, in our country, because it is the citizen who every morning is contributing to the creation of all this mass of money that disappears.”
The country, says the Minister “needs infrastructure and liquidity to be able to realize new investments and thus create new jobs and think of the young people.
Market freedom yes, but not taking every morning from the citizens and then going and putting it in some box in the Virgin Islands, in tax havens, in creating only extra personal profits.” The minister estimates the income from the companies in the sector to be 6,000,000,000 a year. He says – of this, at least 4,000,000,000 a year could be re-invested. At the moment most of this money is used for dividends, for profits that are not re-invested in the infrastructure, and so money for infrastructure is never there. If we calculate that the concessions last decades, we calculate that about 250,000,000,000 Euro that could have been re-invested up until now has not been invested. We want this to happen because this money belongs to the citizens.”

Posted by Antonio Di Pietro in Economy
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13 December 2006

Response to Abertis

Abertis has assumed a position which cannot be shared in relation to the Autostrade affair. Today’s Corriere della Sera carries an interview I’ve given about this matter.

CdS: Ministro Di Pietro, what is your response to Alemany Mas?
ADP: Instead of getting angry with the Italian government, he should reflect on his own errors and on those of Autostrade.

CdS: Which are?
ADP: Tell me why this gentleman is knocking on all the doors in Rome and in Brussels instead of presenting his merger plan to the only institution that can give or deny authorization and that is the Ministry of Infrastructure?
And then so as not to have to go so low as to ask for what he should ask for according to the law, he takes the issue to the TAR. He doesn’t win any of the 4 cases, and then he complains that we are making him waste time? In what world is he living?

CdS: It has been said that Italy will lose a foreign investor.
ADP: Those are the usual lies. Italy will not lose a Euro in investment. Autostrade is committed to make 11,000,000,000 in investments according to the agreement. And this it will do, since it has an abundance of resources, if, well before completing its commitments, it can distribute an extraordinary dividend of 2,000,000,000. In the merger plans there was not even an extra metre of motorway. Perhaps they didn’t knock on the right door because they didn’t want to be asked for this extra metre.
They were thinking of their own interests and certainly not of the interests of the country.

CdS: But in a market economy they are legitimate interests.
ADP: Certainly, in the right context that’s true. If there is competition, and safeguarding of consumers.
In a public service managed as a concession, making use of the public patrimony, there are other rules. It is the one allocating the concession that must defend the collective interest.
Of course, it seems to me that the Spanish government is keen to promote the interests of the public by dictating the conditions by which E.On can make its offer for Endesa.

Posted by Antonio Di Pietro in Economy
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11 December 2006

TAR of Lazio and Autostrade

TAR of Lazio has turned down Autostrade’s suspension request relating to the measures taken by Anas on 5 August earlier this year.
Autostrade and the concessionaires in general must now take note of the fact that the new regulations introduced with the Finance Law do not change the rules but impose greater transparency to protect the citizens and the State.
Taking the case to the European Union and to the TAR has been instrumental and has produced results which were the opposite of those expected by Autostrade and by some of their political allies.
TAR of Lazio has furthermore turned down the application by Autostrade against the freezing of the maxi-dividend of 2,100,000,000 Euro in the absence of committed funds for the engineering works that have not been carried out and surprisingly of a value equal to about 2,000,000,000 Euro.
The interests of the public cannot be made subordinate to those of private individuals or companies. I hope that after the TAR’s decision, that the counter-positioning of the concessionaires will stop and that they will no longer consider maximum profits to be their top priority.

Posted by Antonio Di Pietro in Economy
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4 December 2006

Facts and Words

The opposition that today is demonstrating on the streets of Rome with a papier-mâchè demonstration, a pale imitation of the carnival of Viareggio, should rather accept what happened while it was in government. The demonstration will soon be forgotten.
The enormous holes in the State’s balance sheet will live on as will the ad hoc laws, including the Cirielli law that will allow Previti to escape from justice for the reduction in the terms of “prescrizione”, the ‘porcata’ election law, and the virtual great engineering works and so on and so on.
An economic, political and social disaster. This government is performing actions. This is even recognised by the Mayor of Milan.
The previous government, in which even the Lega was present, in relation to Milan, produced only promises that were not carried through. The current government has approved with an amendment from me, the provision of 160,000,000 Euro to create the linea 4 between Lorenteggio and Linate.
Letizia Moratti said: “After 20 years Milan is setting off with the metro and in 2007 construction work will start on lines 4 and 5”. She added: “The government has kept to its promises.”
The previous government limits itself to demonstrating on the streets.

Posted by Antonio Di Pietro in Economy
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18 November 2006

Infrastructure Priorities

Diagram: plans of work and infrastructures on Italian territory
Yesterday at Palazzo Chigi I met representatives of the Regions and I presented to the press the document of infrastructure priorities.
The infrastructure priorities are set out to develop the country through a process of programming with the Regions and the local and territorial bodies.
The improvement of infrastructure and above all the great axes of connections (pan-European and national corridors) is a necessary condition to avoid the marginalisation of our country in the European Community.
The secondary networks and their connection to the principal networks will be strengthened to give a more equal access on a territorial level to intercontinental traffic. The politics of development must be distinguished between the North and the South of Italy.
The development in the North needs to tackle and resolve the problems of congestion.
The South can legitimately hope for a strategic role as a European gateway for traffic coming from the Far East and the Middle East and from North Africa. For this reason, it is necessary to identify access points in terms of ports, airports and networks that connect to the whole of the continent.
It’s necessary to intervene with big engineering projects, but also with infrastructures that are functional to the residents. It’s also necessary to ensure the functioning and the production capacity to avoid that the country isn’t simply transformed into a passageway for goods on their way to Europe.

Posted by Antonio Di Pietro in Economy
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17 November 2006

Structural Costs and Competition

In Italy we are living a paradox. In a situation in which there is difficulty in the economic and industrial system of the country, the structural costs that companies have to cope with are higher than those in many European nations.
I’m referring, for example, to the costs of energy, of connectivity, and of motorways. Companies have to compete in a global market and often have difficulty in surviving. Thus they must have services that are of a quality and at costs on a level with Europe. The efficiency of the system that is this country starts here: from competitive services.
Italia dei Valori has decided to start a national awareness raising campaign on this issue. A campaign that will take advantage of comparative data, of discussions with the bodies devoted to overseeing the situation and a constant flow of information.
What is valid for the companies is even more valid for the families. Italy in Europe can no longer allow itself to have natural monopolies with a logic based mainly on profit and thus penalizing the system that is this country.
European prices, European efficiency to be transformed into greater possibilities for competition for the companies and solid savings for the citizens.

Posted by Antonio Di Pietro in Economy
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31 October 2006

Research and Global Competition

Global competition is accelerating the growth in Research and Development investment by 7% per year. Research is an absolute necessity for the survival of companies.
The International R&D Scoreboard, that each year looks at the top 1,250 world companies for investment has classified the top 50 companies for research spending. Only one company from Italy is there: Finmeccanica at the 50th position.
Italy is not present among the top 10 world nations for research and development. It is overtaken by the United States, Japan, Germany and even South Korea, Switzerland and Finland.
It’s a given fact that the companies that invest in research, manage to grow and increase their market share. This is not happening in our country for many reasons.
Among these are the lack of mechanisms provided by the State to give incentives to companies to invest; the inability to keep young researchers in Italy as they prefer to emigrate because of the lack of conditions favourable to their professional development; the destination of dividends to shareholders in a disproportionate way rather than to research and development as for example has been happening for years in Telecom Italia.
These are all urgent topics to be tackled by the Government to set the economy going again.

Posted by Antonio Di Pietro in Economy
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29 October 2006

Restoring the Public Accounts to Good Health

The sacrifices that Italian citizens are being asked to make with the Finance Law have been dictated by the need to save the country from bankruptcy. The Centre Right Government has left us with a growing public debt, a fall in industrial production, the reduction of employment levels, and the deficit in the Balance of Payments.
Berlusconi e Tremonti have gifted us with the collapse of the public accounts. This is the truth, and is visible to all. A truth that would be much more evident if an opposition party didn’t have 3 TV channels and an unlimited number of newspapers.
A situation that is unique in the world and one that is obviously undemocratic. The cheek of the Centre Right blaming Italy’s problems on a manoeuvre that is instead trying to save Italy is intolerable.
That leaders of the Centre Right are offering to save the country with a government done toghether is similarly intolerable. They have shown themselves to be incapable and are now claiming to be able to teach us something. If they want they can do that, but from the opposition benches for the next five years.

Posted by Antonio Di Pietro in Economy
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27 October 2006

Utility Bills and Profits

Most of the companies that provide primary services have growth in turnover, in profits and in dividends distributed to the shareholders. In the Mediobanca classification the following appear among the top ten: Eni(1), Enel(2), Telecom Italia(3) and Autostrade(5). Companies providing energy, electricity, connectivity, manage motorway connections in a substantial position of monopoly.
If these companies record high profits and the citizen suffers constant increases then something isn’t working. If tariffs, fixed costs, toll charges have the aim of distributing rich dividends to the shareholders, and not the development of the nation the Authorities have the right and the duty to intervene.
The essential services can be a stimulus to the development of the companies in competitive markets or they can cause distortions in the case of monopolies without real controls. Italy is today positioned in this second situation. The relaunch of the economy starts from services that are competitive in Europe in terms of quality and prices.
Furthermore, the pockets of citizens cannot be used to distribute dividends to shareholders by means of essential services. I find this profoundly immoral.

Posted by Antonio Di Pietro in Economy
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20 October 2006

The Finance law and tax evasion

The Finance law is an intervention of necessary re-equilibrium. The previous government, the one that today takes to the streets and the roundabouts, lived on promises and getting the State into debt. There was the absolute necessity to avoid fundamental economic parameters, like the rate of inflation and the public debt, from ending up out of control.
The main cause that is endemic to this umpteenth sacrifice is tax evasion, that is quantified as 200,000,000,000 Euro per year. A monstrous figure without comparison in western countries. There are provinces and sectors where tax evasion is more than 50% and even more than the declared income base.
Public services, health, transport, schools are based on taxes from citizens. In the Constitution it is clearly written that everyone must do their bit based on their capacity to contribute. Those who don’t contribute, the so-called “crafty” ones, are in fact thieves, and they are the main cause of the increase in costs of social services and of taxation. Those who already pay taxes are thus wronged twice.
There is a simple and immediate way to get the tax dodging revealed. It would be enough to deduct from the income base, the costs paid. The tax dodgers would no longer have a reason to exist and a big chunk of the tax dodging would be recovered. A widespread system of complicity would thus fall.
If citizens could already deduct their expenditure, the Finance law would have been able to strengthen the social services and invest in infrastructure without asking citizens for even one euro, in fact reducing taxes. Why has this never been done if it is so simple?
The answer is that tax dodgers vote and as always have a big representation in Parliament. The fight against tax dodging cannot be put off. It’s not simply an issue of social justice, but of the very survival of the State.

Posted by Antonio Di Pietro in Economy
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18 October 2006

Clarity on Autostrade-Abertis

I’m publishing an interview that I gave today to La Stampa.

ADP: Green light? If it’s a matter of a merger between 2 private companies, namely Autostrade and Abertis, the traffic lights are neither green nor red, the traffic lights are just not there.
What is different however is the discussion about the concession, as the Minister for Infrastructure, Antonio di Pietro, speaking on the telephone, explains.

LaStampa: Minister, between declarations and press releases there’s a bit of confusion. What is the situation today according to you?

ADP: If we refer to the declarations made by Prodi in Madrid, the President of the Council has simply repeated something that we have said from the beginning: there’s no obstacle to the operation, given that a government cannot put an obstacle in the path of a decision made by 2 private entities. They are free to do commercial and financial operations that they believe to be appropriate, and the government has no grounds to intervene. It can simply take note of the event.

LaStampa: The question of the concession, however…

ADP: If we are referring to the concession, understood as an administrative authorization, faced with the transformation to a different body, controlled by a different entity, to a new point of reference, the Council of State has made known that once a merger has happened there cannot be an automatic transfer.
The judges have in fact said very clearly that the Minister of Infrastructure, and the Minister of the Economy have the duty to carry out an evaluation regarding the legitimacy and the merits. As regards the legitimacy, the prohibition for construction companies to take part in the merger has been superceded by the decree that brought in a ceiling of 5% for them at the time that the administrators are nominated, but allowing them free to buy shares when and if they want to.

LaStampa: However the Minister Bonino in Brussels yesterday said even this obstacle will be removed.

ADP: For the moment the decree stands. It could be modified if Parliament so wishes or if the European Commission requests that if this positive modification that we have brought in to overcome the prohibition against construction companies should turn out to be insufficient.

LaStampa: And if even this threshold were to be removed?

ADP: For my Ministry, it would have absolutely no influence as the evaluation as regards the merits remains valid. For me this is not to be separated from the whole procedure and it remains in all its complexity and completeness that has to be examined. This includes the consideration of the interests of the State and whether the concession passes or not to a foreign entity.

LaStampa: Is this why you have told Anas that Autostrade could reformulate the request for authorization?

ADP: We did that the day following the approval of the decree that removed the prohibition to the presence of construction companies in the social capital of the new group.

LaStampa: Basically, it’s possible to say there is a green light to the merger but not to the transfer of the concession?

ADP: The green light to the merger was there from the beginning, as no-one could really place traffic lights there.
The traffic lights for the transfer of the concession, however, is there: I repeat, it’s necessary to do a thorough evaluation of the merits and the legitimacy. And we can’t take for granted that there won’t be other questions of legitimacy that could emerge. The partners must present a new application and according to what they propose to us or what they re-propose, we will evaluate the situation. I would like to point out that up until now, we have not received any proposal and thus it seems very strange to me that there is this presumption, this continuous pressure on the Ministry to concede a concession that has not been requested.

LaStampa: Have you always been convinced that all the concessions should have a thorough overhaul?

ADP: It’s not simply a question relating to Autostrade spa, but the issue relates to all 22 of the companies managing motorways. In fact we find ourselves with a situation that has shown everyone its limits and its irrationalities, because as it is currently formulated, the system does not guarantee the tax payer and it does not guarantee the consumer, the safety, the competition in the sector and the certainty of the investments. It does not even guarantee the transparency of the verification activity.
In fact, up until now, I haven’t managed to find a single control mechanism either inside the Ministry or inside Anas that relates to respecting the concession pacts.

Posted by Antonio Di Pietro in Economy
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14 October 2006

Rights of citizens and of Concessionaires

I’ve had a single objective from the moment I became a Minister: to serve the country and its citizens. The dispute that is ongoing with the Autostrade company and in general with the motorway concessionaires is fruit of a wish to define rules that protect the rights of Italians.
The ambiguous silence of the other parties concerning this national issue, about primary infrastructures for the development of the country is demeaning. Behind the concessionaires there are very powerful lobbies.
Their interests don’t seem to coincide with those of Italian citizens, but they can in fact match with those of some parties.

L’Espresso has published an interview with Marco Ponti, Professor of Economics and Transport and one of the most important European experts.
It is an interview in which he criticizes some of my positions but it clearly expresses the following concepts:
- “extraordinary profits are made without great increases in efficiency”
- “(the system) is too unbalanced in favour of the concessionaires and does little to protect the users from the gains made by the monopoly”
- “(what we have seen so far has little to do with a price cap) because in fact it doesn’t give back to the users the excess profits that the regulated body accumulates”
- “we have a system that does not satisfy the needs of viability nor the efficiency of the concessionaires”
- “(investments over long distances) there are no advantages to entrust them to private companies because the industrial content is too thin”
- “(in relation to the tariffs) the system should be changed to face up to the defects of the excess profits that haven’t been given back, the investments that have not been done and so on”

This is a reality visible to the eyes of every car driver.

From the beginning of the Autostrade-Abertis situation, the main discussion areas have been on finance, mergers, and Stock Exchange.
There has been no or not enough discussion about the protection of the rights of citizens, of the fairness of the concessionaire-State relationship, of the policy of developing the infrastructure in connection with the territory. There has been much discussion about money, and about groups that already are earning a lot and would like to earn even more.
For these people, the problem is that the motorways belong to the State, not to the concessionaires. The substance is not the market, but good management. This is the only criteria I intend to use to judge the work of the concessionaires.

Posted by Antonio Di Pietro in Economy
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17 September 2006

Reforming the Stock Exchange

The resignation of Tronchetti Provera obliges a serious reflection on the mechanisms that regulate the Italian Stock Exchange.

The difficulties in which the Telecom group now finds itself in fact have their origin in the lack of rules, rather than in the market.
Among these, the mechanism of the Chinese boxes which make it possible to gain control of companies with a ridiculously tiny percentage. The absence of true representation for those shareholders owning small quantities who have no voice in the shareholders meetings and who are rarely represented on the Board of Directors.

The presence of directors and statutory auditors on more than one Board of Directors with the potential for a conflict of interests that is at times very evident. The possibility in a balance sheet to attribute share values that do not correspond to the market value as has happened for Olimpia (the company controlling Telecom), that values Telecom shares at twice their value on the Stock Exchange. The possibility, at the time of acquisition to put companies into debt at such levels that their management cannot support.

Without new rules offering guarantees for investors, the Italian Stock Exchange cannot develop and will become still more crippled, controlled by a small number of powerful groups and it will definitively ward off foreign investments.

Posted by Antonio Di Pietro in Economy
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13 September 2006

Selling Tim

In 2005 Telecom Italia announced a merger with TIM. The operation was justified by the creation of value that could be attributed to the integration of landline with mobile. The merger increased Telecom’s debts and they now are over 41,000,000,000 Euro. But it allowed Telecom to access the cash flow generated by Tim. A year later Telecom Italia announces the release of Tim in the name of an imaginary readjustment. The directors that approved the merger, even the so-called independent ones are approving the operation.

This is an incomprehensible U turn from a strategic or industrial view point. Telecom Italia from the moment that it was handed over debt-laden to the so-called “captains courageous” in 1999, has known only, sell-offs, release of sections, and reduction of personnel. Today it risks imploding. Olimpia, that has the controlling package for Telecom, has the Telecom shares marked up with a value that is double that of the market. But there is complete indifference on the part of the controlling bodies. This is a value that is by now no longer recoverable, even according to the most benevolent analysts. The splitting off of Tim and the subsequent sale are an extreme attempt to reduce the heavy indebtedness of the group.

I maintain that the Government must intervene. In particular as regards the backbone, to safeguard national interests. Telecom is the umpteenth demonstration that the sale with debts of natural monopolies on the part of the State to private interests without a real financial capacity, does not produce positive results for the State nor for the citizens.

Posted by Antonio Di Pietro in Economy
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11 September 2006

The EU and Autostrade-Abertis

I’m giving here the text of the interview I had with la Repubblica on the topic of Autostrade/Abertis.

ADP: For me, the issue of the Autostrade-Abertis agreement was an investigation and a process that was closed with the decision taken in August. If someone wants to reopen the “case” and examine other proposals we’ll have a look and we will decide. But for now I don’t see what else is new.

R: You’re not worried that there’ll be a possible decision from the EU?ADP: The investigation being carried out by the EU relates to competition and the internal market. It has nothing to do with the decisions that have been taken in August by my Ministry and that of the Economy.

R: And what’s the decision about then?ADP: As we have explained many times, the decision relates to the request for the passage of the concession. On the basis of the norms fixed for the privatisation, it cannot be given to a company in which constructors are present. It’s a norm that was agreed at that time with Europe to avoid the conflict of interests and it is in force now and we have the duty to make sure it is respected.

R: So you haven’t blocked the merger between Autostrade and Abertis?
ADP: Not at all. The merger in itself is not relevant. We have simply acted taking into account the law on the issue of the concession and its passing to a third party on the basis of the norms fixed at the time of privatisation. If someone wants to change that they can open another investigation and decide on the basis of new regulations. But at the moment that’s the law and it’s the duty of a Minister to apply it.

R: Blocking the passage of the concession in fact makes it impossible to make the agreement. Is it not possible to change the law?ADP: Perhaps, but it is a question that needs to be examined on the basis of another investigation. And then there’s always on the agenda, the question of fixing new norms that govern the system of motorway concessions and the mechanisms for controls and penalties.

R: That is?ADP: It’s not possible to go on with a mechanism that doesn’t have controls and measures in place to protect the taxpayer. If, for example, someone tells me that 3,000,000,000 Euro of investments have not gone ahead because the local authorities blocked the authorisation, will I or not have the availability of a norm that allows me to say to that concessionary: OK, but the money in the meantime has to be put into a protected fund as a guarantee that this will go ahead? And then there’s the issue of sanctions.

R: Do those have to be revisited as well? Are they not adequate?
ADP: Yes in a certain way, because today, the only tool in the hands of whoever is controlling is the revocation of the concession. And in certain cases that is a blunt instrument as it is an exaggeration.

Posted by Antonio Di Pietro in Economy
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27 August 2006

The new Intesa-Sanpaolo Group

The creation of the new Intesa-Sanpaolo bank is good news for our country. A great Italian banking institution is created and is in seventh position for capitalisation in Europe after Unicredit.

It is the best response to the dark period of Italian banking that led to the arrest of Fiorani of the Banca Popolare Italiana and the exit of Antonio Fazio from the Banca d’Italia. Two great banking institutions have the possibility of helping the industrial development of our country and to assist in our presence in foreign markets.

However, these positive expectations are accompanied by the wish that the Italian banking market adjusts as soon as possible to the European market for the conditions offered to companies and clients. Furthermore it would be appropriate that the banks limit their participation in industrial and publishing companies.

To protect themselves and their shareholders. However this is not what happened in many cases, starting from Parmalat.
A healthy banking system cannot allow itself to participate with substantial shareholdings in industrial companies that are often clients. Neither can it allow itself to influence public opinion through the ownership of shares in publishing companies.

Posted by Antonio Di Pietro in Economy
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16 August 2006

The interests of citizens

Gian Maria Gros-Pietro, the president of Autostrade, gave a long interview that appeared with big head lines in il Corriere della Sera last Sunday.
In the interview, Gros-Pietro emphasises how the merger represents a great opportunity for the country.
I have great respect for Gros-Pietro and I esteem him. But I have a different view. The opportunity is above all an economic one for the Autostrade company and perhaps it can indirectly be an opportunity for the country. It’s a question of private interests not interests of the State. They are interests that in part can conflict with public interests.
In particular this occurs if the investments which have been planned to modernise the motorway network are not carried out. This is the current situation. The Italian motorways are not a cow to be milked for the distribution of dividends.
Gros-Pietro states “The Autostrade company cannot avoid using all available methods to protect the shareholders”. The same is true for the Government in relation to the citizens. The network is essential for the growth of the Italian economy. Its development and the regulation of the tariffs to reflect the real management costs are two topics for discussion. I will start such discussions as soon as possible with all the concessionaires.

Posted by Antonio Di Pietro in Economy
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9 August 2006

Public utilities

The Autostrade affair has opened (re-opened?) a debate about public utilities in Italy. A very important debate that I hope will bring clarity and above all, advantages to Italian citizens who benefit from the services. Privatisation of the utilities must come about in a context in which a de facto private monopoly is not created. In which the development of the market is guaranteed, in which there is a reference framework that protects the users and finally one where there is a controlling Authority with real powers to impose sanctions.
It seems to me that this is not what has been happening in Italy in the last few years. In fact the private monopolies that were previously public have become weaker financially without bringing any particular benefits to the country. This is a situation that has come about through the use of debts in the acquisition of the companies that belonged to the State.
If they are heavily in debt, the companies have objective difficulties in making investments and this is what has happened.
I am not against privatisation. I am not against the market. The opposite is in fact true. But the handing over to private companies of public utilities cannot be reduced to pure economics. When the economy of the country depends on the public utilities, it’s not enough that the dividends of the controlling group are the predominant feature. The industrial and economic development of Italy is conditioned by the public utilities. They must be efficient and competitive while respecting the market, the citizens and the companies.

Posted by Antonio Di Pietro in Economy
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7 August 2006

Stop to the Autostrade-Abertis merger

In accordance with the power of authority recognised in the executive of the Council of State, the minister of the Economy Padoa Schioppa and myself have sent a letter to ANAS. This letter communicates the negative decision of the Government in relation to the merger Autostrade-Abertis.
The merger has been judged not in conformity with the normative framework that forbids the participation as a shareholder of bodies that are in the situation of conflict of interests. This is particularly relevant to those who operate in the construction industry and in transport.
Furthermore, the operation would have produced changes to the framework of control, to the economic and financial structures, and to the patrimony as well as to the strategies of the group. There were possible effects on the stability of the company structure of the concessions, on the investment plans, on the qualitative standards and the safety and on the service provision, on the management of the infrastructure and on all the further aspects relevant to the interests of the public.
I have already expressed my perplexity about this merger many times, even on this site. I am thus very satisfied about the decision taken yesterday by the Council of Ministers. It is a decision, it must be remembered, that is above all, to protect Italian citizens.

Posted by Antonio Di Pietro in Economy
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23 July 2006

The Charter of Motorway Rights

I am currently examining the preparation of a Charter of Rights of Motorway Users. The charter will be drawn up with the participation of consumer associations, of motorway concessionaires and of representatives of the Ministry of Infrastructure. The charter will contain the rights of the users of stretches of motorway and it will define any compensation that could be due to them.

Purely as an example: if the journey time were to increase markedly for road works for a long period of time, as is the case on the Milano-Torino, then it’s possible that the citizen would have the right to compensation in the form of a reduction in the toll paid. If the costs of collecting the toll payment go down for the concessionary, the citizen must have a benefit and not a disbenefit, as happens now for the Telepass for which there is an additional charge. If the safety conditions are not guaranteed, if there is an accident, the citizen must have help available from mechanics who are responsible to the Ministry.

The Charter will thus have to respond to safety and equity criteria so that the citizens can see that their rights are respected.

Posted by Antonio Di Pietro in Economy
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15 July 2006

Framework Law: 115,000,000,000 Euro are missing

Today I presented I presented a document to the Council of Ministers. It is the document that integrates with the Documento di programmazione economica finanziaria (DPEF) {Economic and Financial Planning Document} for the public works in that part of the framework law that is the responsibility of the Ministry of Infrastructure. The introduction is attached.
Basically, to complete the original programme that was set out in 2001, about 115,000,000,000 Euro are missing. This is due in part to the lack of funds, and in part to the 38% increase in the value of the work for extensions that were not originally planned and for increase in the cost of the raw materials.
In this serious situation, I have given priority to those public works that have necessarily to be finished off and that have already reached a state of near completion.
In the next few days, I will make the whole document available online.
Whilst looking at the state of activity of the public works and at the investments made, a very deep asymmetry becomes apparent between the North and the Centre and South of the country. In fact, 77% of the total investment is located in the North, as against 13% in the Centre and 10% in the south.
This is a logic of investments that is contrary to the creation of an integrated transport system and one that introduces disequilibrium and problems at a national level.

Posted by Antonio Di Pietro in Economy
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10 July 2006

The DPEF and empty coffers

Straight away the government has had to face up to empty coffers and to the economic emergency. The Documento di programmazione economica e finanziaria (Dpef) {Economic and Financial Programme Document} is an important response to the grave situation that Italy finds itself in. The 35 thousand million project involving 20 to bring the accounts back to health and 15 for development, is the first step in a five year articulated plan. The plan aims to get a zero deficit and to get the public debt to below 10 per cent of the Gross Domestic Product (GDP).
If State finance is to be brought back to a healthy situation and to avoid bankruptcy, it's inevitable that changes need to be made to the most important spending items in the budget. 80% of this is made up of spending on local bodies, on pensions, on public administration and on health. Citizens will be called to make sacrifices, but these must be equably distributed. To do this there will be severe and efficient measures against tax evasion that has reached intolerable levels in Italy. Citizens and companies must furthermore, be able to access efficient services for energy, telecommunications, and transport at competitive costs.
In relation to my direct responsibility, I am studying for the Ferrovie dello Stato {State Railways} the separation of the infrastructure (the rails) and the vehicles (the trains) so as to restore competition to the system and thus to give advantages to the citizens.

Posted by Antonio Di Pietro in Economy
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5 July 2006

Motorway concessions

Privatisations and concessions have been put into effect by the Italian State in the last 10 years at conditions that are often disadvantageous.

This is a situation that has moved resources of the State and thus of the citizens, to give advantages to finance and business people. The State has played the part of an inverted Robin Hood. It hasn’t robbed from the citizens, but in fact it has impoverished them of goods that they owned without giving them any real benefits in exchange. To this it must be added that control instruments to make the concessions work are missing.

I have arranged a meeting this afternoon with Aiscat. This is a grouping of dozens of motorway concessionaires that are controlled by ANAS on behalf of the Ministry of Infrastructure. The reason for the meeting is the discussion of the current situation that is balanced too far in favour of the concessionaires. This is a situation that cannot continue.

I will propose to Aiscat the institution of a framework contract with new regulations that the concessionaires must work within. For each individual concessionaire a special contract will be prepared with the support of a work group involving representatives of the concessionaires, of the Ministry, of consumer associations, of motorway users, and of taxpayers.

These latter three categories for me are essential even though they have been ignored in the past. They are necessary to make these concessions fair. This same route should obviously be followed by the Autostrade company if it wants to conclude its merger project.

Posted by Antonio Di Pietro in Economy
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3 July 2006

Income due to position

Last Friday, the Council of Ministers took an important step in favour of the citizens with a series of liberalisations that have eliminated the historic incomes due to position.

It is one step on the route to liberalising the Italian economy from corporate interests and to fight inflation. The steps concern pharmacies, bank accounts, transport, acts of public notaries, insurance, and rules relating to the activities of accountants and professionals.

When any income due to position is under discussion it is obvious that the categories of people affected, for example the taxi drivers, the pharmacists, and the public notaries, in some way feel defrauded of a right. But the free market does not run on this sort of income and the Government is obliged to protect the plurality of the citizens not a single category.

In the set of measures taken, the power of the Authorities to provide sanctions has been strengthened and it can now be up to 10% of the amount invoiced instead of the 3% that it was previously. This is an important decision that will in the future be accompanied by other strong government measures in relation to the de facto monopolies of the utilities. In particular I’m referring to telecommunications and energy, the sectors that for tariffs and for the quality of service provided, must conform to Europe as soon as possible.

Posted by Antonio Di Pietro in Economy
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30 June 2006

The season for lobbying is over

I’ve received many emails asking me why the president of Abertis, Isidre Fainè Casas, and the CEO, Salvador Alemany Mas have been meeting with the President of the Council, Romano Prodi and under secretary, Enrico Letta. It’s not the first time that the leaders of Abertis have asked for and obtained a meeting at Palazzo Chigi.

I can respond that in the future I will be happy to receive them, together with società Autostrade, at the Ministry of Infrastructure. We could discuss their ideas and how they could be made real and the necessary administrative acts. We could discuss precise responses to the points raised by the Council of State in relation to the 2,000,000,000 Euro that were not spent and to be made available for investments and the renegotiation of the current concession.

The time when public relations was the primary instrument for politics finished with the Berlusconi Government.
The components of this Government operate in full harmony, based on the principle of delegation to the persons responsible for the various ministries. The season for lobbying is over. The season of honey moons is over.
Abertis know my address. There’s no need for short cuts.

Posted by Antonio Di Pietro in Economy
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29 June 2006

ANAS Accounting

Today I have sent to the Procura della Repubblica di Roma {Prosecutors of the Republic in Rome} and to the Corte dei Conti {Court of Auditors} the information in my possession so that they can evaluate the position of ANAS.
ANAS responds to the Minister of Infrastructure and so my action is a necessary one.

There are two aspects that need to be examined attentively: if the information shows there has been false accounting, and false social communication and if a crime has been committed for the sum of about three million Euro paid to the members of the previous Board of Directors when in 2002 ANAS changed from being a public body to being a company with shareholders.

I can state right now that the management of the accounts of ANAS has been superficial and not really clear.
The difference between the amount stated in the accounts to be used for investments and how much has in fact been used is 5,000,000,000 Euro. The financial position of ANAS if there is no State intervention, would take ANAS to bankruptcy.

Unfortunately, the situation is serious and 11,600,000,000 Euro is needed to continue the current construction work on the roads started by ANAS and on the state railways. My precise duty as Minister is twofold: to find the necessary funds and to determine the causes of this massive hole in the finances. In effect, I need to understand how the money of the citizens has been spent.

Posted by Antonio Di Pietro in Economy
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25 June 2006

The TAV and the European Community

In the last few weeks I have met with the president of the Mountain Community of the Lower Valle di Susa Antonio Ferrentino, the president of the Observatory Mario Virano and the European Commissioner Loyola De Palacio to talk about the TAV in Val di Susa.
I believe this work to be important, but I consider to be legitimate the requests of the people of the valley to be part of the decision-making process. To start off with a “no” to the TAV that is “a priori” and ideological cannot obviously be part of a true discussion and the evaluation of the different possibilities must be considered with objectivity by all.

The TAV is considered to be a priority by the Government and by the European Community and the European Community will provide 1,000,000,000 Euro to get the work started. It is important to point out that this money is provided by Europe specifically for the High Speed project. Thus it will be given to Italy only if the project goes ahead. The lack of funds for road works to be carried out by ANAS is another matter. Money for this must be found through financial activity as soon as possible so that the work is not held up indefinitely.

Posted by Antonio Di Pietro in Economy
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20 June 2006

Reducing costs of the Infrastructure Ministry

Efficiency and cost reduction of central public administration are two of the objectives that Italia dei Valori has for this legislature.

Within the ambit of my role as Minister of Infrastructure I have started to evaluate potential cost saving areas. My first decision has been to internalise the service of controlling public works. The previous minister had entrusted this activity to 8 external consultants, thus doubling up on competencies that were already present within the Ministry and demotivating internal personnel.

The cost of each consultant is 200,000 euro for the activity plus 250,000 euro for various costs plus 187,000 euro for expenses. The consultants make use of offices within the ministry and have a secretary.
Some of them had previously worked in the ministry and they had been placed off the payroll to continue the same activity with a much higher cost to the administration.

637.000 euro multiplied by 8 consultants produces a saving for the State of over 5,000,000 euro.

From 30 June, the activities that are today undertaken by the consultants will be handled by competent officials and the external collaboration will be stopped.

Posted by Antonio Di Pietro in Economy
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16 June 2006

No to waste

Today I went from Rome to Brussels on a regular flight to take part in a meeting of the liberal democrat party. To save money I travelled economy class. Certain online newspapers are treating that as news. It shouldn’t be news. It should be normal. I can add that the ticket was paid for by Italia dei Valori and I used no special privilege associated with being a Minister.
In fact I believe that using State money to conduct activity for one’s own party should be considered to be misuse of funds by a public official.

Italy needs to save money. The previous government left behind only holes in balance sheets and creative accounting without worrying the former Minister Tremonti. When he is invited to speak on programmes he obviously has great difficulty in explaining the reasons for a public debt that is about to reach 5% and of a primary surplus at a miniscule 0.4%.

Italy needs to focus its limited resources on innovation and on the most urgent activities. Everyone must play their part. As clearly stated during the election campaign, Italia dei Valori will fight for a State structure that is efficient and without waste, starting from tiny things like the reduction in the number of State cars and escorts.

Posted by Antonio Di Pietro in Economy
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15 June 2006

The new Agreement for Motorways

Today there was the second meeting between Autostrade {company managing the Motorways} and ANAS {Azienda Nazionale Autonoma delle Strade Statali = company managing the State roads} with the intention of checking up on an agreement. I do hope it’s possible to find an agreement. If it were to happen that Autostrade does not accept a renegotiation of the Convention, or something of the same value, this would be going against what is correct in the institutional context and they would have to accept responsibility for this.

The rewriting of the Convention has even been suggested by the independent committee established by ANAS. It will certainly take time and given its importance it’s certainly right that all the different aspects can be evaluated without having time constraints.

If the merger were to happen before 30 June without a new Convention being approved by the Minister, this would be an “at risk” operation and I believe that Abertis and Autostrade must take this into account.

During yesterday’s hearing in the Lower House I stated certain points relating to Autostrade and they are summarised here:
- construction companies cannot be part of the collection of companies making up the resulting company for evident conflict of interests according to the ministerial decree 16/5/1997;
- investment policies resulting from the merger must not be penalising in relation to the investment obligations set out in the Convention;
- Autostrade’s cash of about 2,000,000,000 Euro must be speedily used on motorway work. It is currently managed by the company as pure finance. (The Authority has discovered that Autostrade has put into action only 2,100,000,000 of the projected 4,100,000,000 investment programme.);
- there is a need to re-examine the motorway percentages that can be charged to the concessionaire and on receipts from advertising and sub-concessions;
- inclusion of adequate and proportionate sanctions, that are today deficient, if Autostrade does not fulfil its obligations.
Anyway a study is now underway to find an efficient system of controls so that it will be possible to effectively and speedily manage the relationships with concessionaires.

Posted by Antonio Di Pietro in Economy
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2 June 2006

The TAV in Val di Susa

Before the elections I already gave my thoughts about the TAV in Val di Susa on this site.
I don’t think the journalists have read what I wrote at that time and one of the proofs is, for example, today’s headline in il Corriere della Sera: “Di Pietro and the TAV: I will do the work” that doesn’t correspond to my thoughts.
The TAV in Val di Susa can be put into action only if certain conditions are met: the safety of the people of the valley, the possibility of expenditure for an activity that could cost 12,000,000,000 Euro, the strengthening of the existing railway line as an alternative to the tunnel.

The activity isn’t really about high speed but above all it’s about improving the capacity to transport goods with the construction of a tunnel 53 kilometres long that it is expected will take 15 years to construct.
To get a more precise idea about the situation, I have fixed a meeting at the ministry with the President of the Mountain Community Ferrentino and I have already had a meeting with the President of the Observatory, Mario Virano.

Posted by Antonio Di Pietro in Economy
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1 June 2006

Gros Pietro’s answers

Saturday 27 May Gros-Pietro, the President of Autostrade was interviewed by the journalist Massimo Mucchetti for il Corriere della Sera.

However, my comment on the interview is positive because it allows the citizens and the Autostrade shareholders to have a more complete idea about the possible merger with the Spanish company Abertis.

But I would like to pick up on some of the questions asked by Mucchetti and I would like to ask for more complete and structured answers designed not for an audience of ministers but for the audience of all Italians who want to know about the merger in greater depth. Below I’m publishing Mucchetti’s questions and Gros Pietro’s replies.

“ MM: The merger with Abertis changes the assets. But on 18 November 2002, you assured ANAS that the control of the concessionary would remain with Schema28, and that is with Benetton and partners.

Gros-Pietro: That letter was not a commitment. It was useful to explain the effects of the company restructuring. Following the Tender Offer. Anyway we didn’t indicate a deadline.

MM: Without which that assurance would be intended for the whole leght of concession?
Gros-Pietro: It would be an unacceptable limitation on the right to ownership. If the State imposes conditions, they must write them out. The post privatisation lock-up was for 36 months, not an infinite time.

MM: Construction companies and Fiat were excluded from the competition for Autostrade. With the merger, however, the industrial partner will be the construction company Florentino Perez.
Gros-Pietro: The exclusion of the construction companies was imposed by the European Union, as a guarantee of the regularity of the competition for contracts for the work on the "Variante di valico". Now that that work has started, that reasoning has less validity.
On the other hand, the Italian Government has nothing against the presence of construction companies in motorway concessionaries: the Spanish Ferrovial is in the new Cremona-Mantova, Gavio is in the Asti-Cuneo, Toto is with us in the Autostrada dei Parchi.

MM: With the Tender Offer of 2003, you unloaded 8,000,000,000 of debts onto the concessionaries. This was done, not to develop the business, but to increase the income of the partners. The banks imposed conditions on additional investments. What changes with the merger?
Gros-Pietro: By substituting a part of the equity with low cost debts, we have reduced the cost of capital. With the merger, the ratio of the commitments (existing debts and investments to be done) and the gross margin, goes down from 8.4 to 8 and it decreases more rapidly after that.
...

MM: Why did you conclude the agreement when Italy had no Government in the fullness of its powers thus giving the impression of a “done thing”?
Gros-Pietro: According to Spanish law, the shareholders meeting for the merger must be held within 6 months of the approval of the last certificated accounts, thus by 30 June. We had to be quick.
...

MM: Autostrade had a rate of return on the investments of 11%. That is really high considering the low industrial risk. The new Pedemontana Lombarda is not starting because the return on project financing is 7%...
Gros-Pietro: We could even bring it down to below 11% if the political system could manage to reduce times and risks of the new work. These are the real problems, not the nationality of the companies.”
The responses given are evasive or not relevant. However it is important that they are complete and exhaustive if the merger with Abertis is to be authorised.

Posted by Antonio Di Pietro in Economy
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26 May 2006

The speech of the President of the Confindustria

I would like to summarise the points made by the President of the employers association Confindustria, Luca Cordero di Montezemolo, who was speaking at Confindustria's annual general meeting and to add my comments.

Luca Cordero di Montezemolo’s main points were:
- contain expenditure
- no increase in fiscal pressure
- equilibrium in public financing
- discussions between economic and social players for development
- greater autonomy for companies
- reduction of the tax wedge {taxes paid by employer for each employee}
- keep the Biagi Law but adding in social sweeteners
- development of big engineering works even in the face of local opposition
- deficit of infrastructure in the north and the issue of the North
- encouragement of bank mergers
- privatisation and liberalisation
- fight against tax evasion
- no to the spoils system
- constitutional reforms aimed at modernising the organisation and the operation of public institutions

It’s easy to share many of these aspirations, in particular those relating to the spoils system, limits on public expenditure, the fight against tax evasion, reduction of the tax wedge, and encouragement of bank mergers.
It’s possible to share others only partly, like the development of big engineering works, considered necessary “a priori” without any evaluation in a complex picture of the needs of the country and of the economic possibilities; keeping the Biagi Law without adding in strong correctives arising from principles of solidarity; the privatisation of companies without precise guarantees for citizens at the level of services and employment, so as not to repeat the errors of the past.

Other aspects are absent from the speech of the President of Confindustria. One of these is the Mezzogiorno {the South of Italy}. Without a revival in the South, through the construction of infrastructure, and the return to the rule of law, Italy cannot develop. Furthermore, there seemed to be a lack of self criticism in the speech. Companies cannot totally exclude themselves as responsible for the current difficult economic situation. I refer in particular to the modest investments in terms of innovation and research and to the scarcity of integration between the system of industry and the universities.

Posted by Antonio Di Pietro in Economy
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25 May 2006

Italy at risk and electoral opposition

The Gross Domestic Product of the Euroland countries will grow in 2006 by 2.7% and in 2007 by 2.1%. For Italy it will grow by 1.4% and 1.3% respectively in the same 2 years. If there are no structural interventions Italy will have a budget deficit of 4.2% and 4.6% in the next 2 years. These are the estimates of the Organisation for Economic Co-operation and Development.

These are worrying estimates that we have been expecting for months and discussing on this site. If we consider the election promises of the CDL about ICI {Imposta Comunale Immobili = local tax on housing}, taxes on rubbish collection, and the declarations of the former President of the Council about the legality in certain circumstances of not paying the taxes, it’s understandable that we have scraped the bottom of the barrel. With the CDL in government we would not have avoided economic bankruptcy.

Many CDL people are still shouting and denying reality. This reality is outlined by international institutions. Can I remind these people that the election campaign is over. Now the country has to be governed. The moment is critical. The opposition cannot simply sit back and say the figures are false. What figures? Those provided by the Organisation for Economic Co-operation and Development? By ISTAT {Istituto Nazionale di Statistica = Italian National Statistics Office}? By the European Community, the Italian Trade Commission?

Even the members of the opposition are paid by the citizens to contribute to the development of the country. I invite them to do this and to bring constructive criticism to the activity of the Prodi Government.

Posted by Antonio Di Pietro in Economy
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24 May 2006

The Autostrade-Abertis merger

Today I sent a letter to the president of the Autostrade (the motorway company) Gian Maria Gros Pietro asking him to postpone the discussions about the merger with Abertis. Following my request, the company has decided to call a meeting of the Board of Directors for 16 June and to wait for any contributions that might come in from institutions so that these can be put to the meeting of shareholders on 28 June.

My letter arose from the need to evaluate all the elements in the merger in the next few weeks so as to be able to express an opinion that is as complete as possible.

I would like to thank the Autostrade Board of Directors that has “offered to ANAS (Azienda Nazionale Autonoma delle Strade Statali = National Organisation to manage the State Roads) and to the governments concerned, Italian and Spanish, every assistance in clearing up any points that are required to create a full knowledge picture of the situation”.

The motorways are a primary good. They are fundamental to the development of our country. We cannot allow ownership to be handed over to a foreign company nor can we allow that the programme of investments in them is not carried out, as has happened for a variety of reasons, in recent years.

The tolls providing income from the motorways are Government concessions and increases in tolls need to be agreed with the Government. Thus it is not possible to talk of market competition. The State can and must take action to protect its citizens and that is what I, once more, promise to do.

Posted by Antonio Di Pietro in Economy
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6 May 2006

Autostrade/Abertis, an operation to be stopped

Autostrade have started a process to merge with the Spanish company Abertis. In 2005, Autostrade had receipts of 2,957 million Euro and net profits of 804 million Euro with debts of 8,794 million Euro.The majority shareholders of the Autostrade company are: Edizione Holding, gruppo Benetton, 60%; UniCredito 6.7%; Abertis 13.3%; Fondazione CRT 13.3%; Assicurazioni Generali 6.7%.

I need to make a few comments:
- the Autostrade company was privatised with debts and this is very clear from its current position. Autostrade was sold to those who, since they didn’t have enough capital, got the company into debt in order to buy it. It seems like a senseless thing to do. But it happened for Autostrade as it did for Telecom Italia and I will make efforts to ensure that such a thing cannot happen in the future. When buying using debts, it means that you don’t have the capital available for investments because the profits are used to reduce the debts as well as to pay the shareholders.
- Autostrade is in fact still a monopoly company living from public concessions and is not in a free market. Because of this position it has made significant profits over these last few years.
- The new shareholders of the Autostrade company at the time of the acquisition, made a commitment with the Government to invest important sums in modernising the Italian motorways. This modernisation has been barely seen if at all.
- The money that Autostrade will receive from Abertis for merging is 1,000,000,000 Euro (half the amount it paid to buy from the Italian State). The headquarters of the new group will be in Barcelona. The CEO for the next three years will be an Abertis man: Salvador Alemany Mas. There’s talk of a right of purchase clause on the part of Abertis on the shares still held by the majority shareholders of Autostrade.

More than an alliance, it seems to be a sell out.
- the operation has been done without taking any notice of the government, not even to inform them. Above all it has not defined the Ministerial contacts.
I think it is appropriate to go back and read the conditions under which the Autostrade company was sold to the group led by Benetton to see if there are clauses that allow the Government to take part in any future sale or merger.

Anyway the company Abertis should be reminded that in Italy, the concessions for motorways are government-controlled and to say the least, to ignore the government as it has done, is not an act of courtesy.

Posted by Antonio Di Pietro in Economy
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