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 hap