I'm from Italy I think my country is destined to become unpopulated with the most old population in Europe and immigrants from really poor countries. That's why riots in Italy don't happen because old people like this kind of policy
Debt to gdp is decreasing so what are you talking about? Also does this dude know the projects was done by LEFTIST parties.... Meloni just has to manage what they did and she blame it all the te to make sure people's knows it's the leftist fault. 😂😂😂
As an Italian there is no economic boom in the general population its only for the 1 % ers, the salaries for the avarage joe are garbage(max 1200,to get 1500 you can be considered lucky) and taxes are still super high and the majority of businesses are small and pay garbage. There are very few big companies so if you want a big salary you have huge competition and to add more, nepotism is rampant in Italian society( there are entire jobs that are impossible to enter unless you come from someone who already is in the business). Sorry to say, but Italy is a third world country without tourism, and i think that with the unsustainable pension plan and huge public debt will cause 99% a default,if not now but by 2028-2030 dire times will arrive. I have worked outside Italy since 2017 and i would consider to work there only for 4000 clean or more,but its almost impossible to get that unless you are a big manager or have super high skilla.
I agree what you say about Italy,i bought a property in Italy 12 years ago,i see alot of nepotism,all the young people i meet want to leave!My father was Italian so buying a property in Italy was my dream but i really hate the system there,trying to get anything done takes too much time,money,paperwork.Everything costs more than you expect,the cost of living is little difference from the UK.There is a local train station (in good condition)which is not connected to the main train line because of a problem with the tunnel(i hear corruption also),been a ghost station for over 12 year's,crazy!Not shure if i will keep my house there much longer,will be selling it!The weather ,food and lifestyle is better so there are some positive things but maybe not enough for me?
Se fai solo 1200 a Milano è un po’ colpa tua, specialmente se non sei alla prime armi (fuori Milano non so perché non conosco la situazione). Preso qualche giorno fa il mio primo stipendio qua a Milano, 1800 netti
@@boravarol6537 ITS DESIGNED THAT WAY ,THE SYSTEM DOESN'T NEED YOU TO BE SUCCESSFUL, IT NEED YOU WORKING ,PRODUCING PAYING TAXES SO THE TOP 10% DONT HAVE TO , THERE NOT ALLOWED TO BRING SLAVES OVER FROM AFRICA SO THEY HOME GROW THEM INSTEAD G U E S S. W H O
@@vincenzobuonvino5860not true at all, this is what big corps governing behind the scene want you to believe. All our money is taken away from the politicians with their stupid policies cause they have the same agenda as USA lobbies. We live in a uni party government, there is no way to free ourselves from the puppet masters head of the EU parliament.
@@vincenzobuonvino5860 No, tax is high because too many Italians had the chance to enjoy subsidies that were paid by other tax payers. Try to evade some money, see what AdE does to you. The left keeps talking about billions in evasions, but if the AdE knows about those billions (supposedly), why are they not doing anything about it? It's simple why, because they are not there to begin with. If there is one thing people are scared of is missing a comma in the tax report. Good thing that if you're an employee it is IMPOSSIBLE for you to miss these and to evade, since your employer does it for you.
As a young italian I can say one thing: the fact that each and every under 35 I meet is not optimistic towards the future of this Country, says it all. Italy is a place where you spend your vacations, not a place where you live.
MOSTLY BECAUSE THIS IS ALL PART OF THE AMERICAN CZARS PROPAGANDA MACHINE AND POINTING OUT ANYTHING GOOD ABOUT BRICS DOESN'T FIT THERE NARRATIVE JUST LIKE GERMANY'S NEGATIVES , GOOD ON YA ITALY YOUR NOT ALONE
@@onkotonkoblu HERE'S SOME FACTS , 1 AMERICA HAS BEEN MOVED FROM THE HEAD OF THE TABLE TO THE BACK OF THE BUS AND BRICS BOUGHT YOUR TICKET 2. AMERICA CAN NOT UNDER ANY CIRCUMSTANCES COMPETE WITH CHINA ECONOMICALLY OR MILITARILY, 3 USUALLY AMERICA STARTS WARS TO KEEP HER ECONOMY GOING AND THEN INSERTS PUPPET GOVERNMENTS , WELL AMERICA CANT DO THAT ANY MORE , MOST OF YOUR VICTIM'S HAVE JOINED BRICS , GIVING THEM PROTECTION FROM AMERICA , UKRAINE PERFECT EXAMPLE. 4. AND AMERICA IS IN DENIAL AND IS TOTALLY OVERWHELMED BY THE NEW WORLD ORDER THAT SHE CANT INTIMATE. 5 LAST BUT NOT LEAST YOUR OLD ALLIES ARE. ABANDONING AMERICA AND JOINING THE NEW WINNER 🇻🇳🇨🇳🇷🇺🇮🇳🏆 AND RIGHT AT THIS MOMENT AMERICA IS STARTING INTO DEPRESSION LIKE THE GREAT CRASH OF 1929. ALL OF YOUR OWN MAKING SEEMS LIKE ALL YOUR CHICKENS HAVE COME HOME TO ROOST THESE ARE FACTS THIS NEXT ONE ISA PREDICTION, MEXICO AND CANADA WILL JOIN BRICS WITHIN A YEAR DO W T F DO YOU THINK OF THAT , ALL OF YOUR OWN MAKING
The biggest problem with this is it's yet another version of a government pension program. The old and rich that already had houses they owned were the only ones that were able to benefit from this and now they will expect the youth in poverty to pay for all of the loses. If I was under 30 years old I would do everything I can to flee and never return to the country after seeing this as the policy the national government chose to go with.
I live in Italy and, while it’s certainly true we are not the strongest economy in the EU, I always loved living here and I wouldn’t live anywhere else. That’s probably because money isn’t the only thing I’m thinking about when judging a country, and also because I live in the richest part of Italy. For sure, there is a big gap between the south and the north of the country and I can understand that people in the far south may be having a different experience from mine. Just sharing some positive experience because I often see people wanting to go abroad. To those people I suggest to go and try. Been there, done that. I came back here because money wasn’t enough to cover all the good things we have here. Started my own business and enjoying a pretty good life now! 🇮🇹❤️
Idem, ho vissuto a Londra e Toronto per lavoro e devo dire che a Milano sto 1000 volte meglio. Magari a Toronto riuscivo anche a mettere qualche soldo in più da parte ma la qualità della vita qua è davvero tutt’altra cosa
si certo pure io vorrei poter vivere tranquillo in Italia e i soldi non sono tutto, ma devo mangiare e pagare l'affitto, non posso farlo col mare e il sole e il buon cibo che non posso comprare
The government even marketed on television new bonds (btp as we call them) as as a secure and profitable investment. The wages have been pumped up for the mid/low income by reduction of pension taxation. We are soooo going to be fucked up in the near future
I'm italian and i work in Italy. I'm 63 yo and still get 1.300 € / month although i speak, read and write 6 languages.. It'd be better for young people to go abroad if they want a true future. Italy's become a country for rich politicians who want to do nothing for this country but minding your own private businesses..
@@francoo.m. senti un consiglio :: rimani dove sei e specie se parli tutte quelli lingue , perché se tu espatri:::: devi lavare solo piatti o forse i cameriere , io ho 85 anni ne ho visto di tutti i colori girando il Mondo ; ho a meno che non ti arruoli nella Legione Straniera io l’ho fatto …….
While many arguments presented are true and it's unrealistic to consider Italy as the main economy of Europe anytime soon, I believe this video perpetuates stereotypical misconceptions that Northern European countries have about Southern European economies. Italy indeed faces numerous challenges, but it also has many strengths. Why don't we ever see videos discussing how the German economic model is unsustainable and how Germany might soon face tough economic situations similar to those in France or Spain? Italy is not the "sick man" of Europe; it's European economies as a whole that are facing significant challenges, with Italy being the first to experience them fully. While I agree that the Superbonus scheme generated inflation and drove up prices, it was also a positive measure for boosting consumer confidence and willingness to spend, which are crucial for addressing the slow growth Italy has experienced in recent years due to severely low household spending. Additionally, Italy has made huge improvements in terms of reducing fiscal evasion, decreasing it by almost a third in just the last five years (from over 150 billion euros to less than 100 billion euros annually). For me, the real problem that this video highlights is that the Italian government is still doing very little to make life feasible for young workers. I had to live elsewhere to find opportunities for a sustainable salary and to avoid being exploited by the Italian working environment. Continued brain drain will destroy any possibilities Italy has of truly recovering. With that said, I would suggest the author to focus more on how the Italian economy could evolve towards more sustainable and structural economic growth instead of unwillingly advocating for austerity measures, which have historically harmed growth in Italy more than any potential future fiscal policies might be doing right now. It didn't work in 2010 and will not work today.
I am italian worker without a property. The superbonus scheme that I am paying and I will pay for the rest of my life through taxes, has just wider the wealthy gap between owners and renters. And I didn't benefit from it at all. It has been one of the sh******t moves italian government did recently as the reddito di cittadinanza.
@@kowmangbeltalowda7584 ah di certo non dico che sia stata fatta bene anzi ci sono stati sprechi da tutte le parti. Ma questo e dovuto soprattutto all'incompetenza dei nostri politci (corrotti e con prospettive di cortissima durata) e della loro incapacita di fare i controlli ex ante ed ex post. Ci sono tantissime altre politiche che avrei preferito a questa. Pero per quanto sia stat fatta di schifo non si puo negare gli effetti di rimbalzo del pil che ha generato. Adesso speriamo che spendano il PNRR nel modo inteso con l'Europa per assicursi davvero una crescita a lungo termine che non sia solo dello 0 virgola.
@@albertomarzani3216 ma magari non ti mancherò io, ma mentre tu ti mangi gli spaghetti ti MANCHERANNO ingegneri, medici e infermieri che andranno da qualche altre parte
A parte il fatto che il superbonus 110 le banche non lo danno più da almeno tre anni. É stato cessato nel .202 e bandito a inizio 2023. video fuori dalla realtà
And I’m one of those Italians who’s planning to study and work abroad in a better country like Switzerland 😂 The job market in Italy and wages are going downhill and even people with a PHD can’t find a decent job and earn more than 2K€ per month (actually making more than 1200€ is already amazing here)
Not really in marche you can find jobs as a bartender and get paid 1400 all regular I talk from experience, same for factory working my brother got hired in Barilla 2 years ago and is taking 1500 a month
@@giorgiogalli6176How many hours u work a week? Do you have an insurance that covers you? You pay for your rent or u have an owned house? Did you sent your job offer and they chose you or you knew already of the place? I could go on forever, but everyone is different coming from different backgrounds. Barilla is a mega corporation in Italy, like Merlo, Michelin, Ferrero and many others, they can easily beat any salaries offered by some small business, but they can't offer job to every single italian. If you find a small business who pays you good, then they think u owe them your life, so they feel entitled to treat however you want. If you didn't get in this kind of situations, then lucky you, I did, so mind your own business as all Italian do when it's not their war and go on about your life, asking yourself when and if you could buy a house in Italy or if you're gonna get a pension plan and if your children are gonna get the same treatment as u do or you're gonna investe all your money on their future in a country with no future at all. It's not about the fact you're living the "good life" it's more like for how much you can live this good life, and with this prerogatives I think you should reflect about the situation, turn off Italia 1 and dive in some online news, not biased by right or left wing, but biased by civil moral. Sorry if you find this bullying or some sort of hate speech, but I'm Italian, I'm from Morocco, I fought for the right to be called Italian and I'M NOT gonna let this shit slip as if it's common in Italy living situations like yours and your brother. Thank you.
@@giorgiogalli6176 I got 1.6k, not degree, work from home. I simply studied and hunted for a job, started at 19. The problem isn't that there aren't jobs, the problem is that people expect to come out of university and have the "right" to earn 5k net right away. I can agree that the cost of living is too high, but the reason why is different.
I find this to be a very superficial and partly misleading analysis. While the description of the status quo is mostly accurate, the reasons that are being put forward in order to explain it, barely hold water considering that a lack of public spending among other things has led to the worn down state of Italy in the first place.
That's because in the ECB in the meantime drastically increased interest rates to fight inflation. In Italy Superbonus 110% was probably one of the main drivers of inflation (to which ECB had to respond to)
Inflation is sometimes hard to predict and in this case I don't see a mechanism for high inflation. Inflation might become an issue when unemployment rates get very low but Italy is far from full employment. Well, home renovation will surely get more expensive due to rising demand and constant or slowly growing supply, but other than that I see neither growing demand nor reduced supply anywhere else.
Agreed isn’t it like 0.75% Italy actually dropped debt to gdp from 156% to 137% from 2020 to 2023 and Italy regained its net positive Budget. Also Italian stock exchange increased by 28% in 2024 Italys economy will become much better however lots of the negatives stated in the video are true and seeing little gains on its issues
One positive note is that tax evasion in Italy is reducing quite steadily in the past few years, it has gone from 21% to 16%, thanks to cross checking and, mandatory credit card POS for every business and other measures. it's estimated that thing s will improve further in the upcoming years
People getting state funds and working illegally in the mean time are a burdain. Increasing estimated life expectance and birth rate near to 1 are another big burdain to sustain. Tax evasion just adds to lots of weak points. Big positive fact: italy is packed with money, black or white you know…
You're right but: 1) Italy didn't narrowly escape bankrupcy together with Greece. As a matter of fact Italy didn't even need to be bailed out after 2008 crisis, as Spain, Portugal and Greece did. 2) Italy has a high public debt, but by far the lowest private debt of western europe 3) last time I checked the Italian net investment position was positive, that is Italy is an international net creditor. Most of its debt is internal 4) normal countries which don't have to live in the framework of the EU and Euro currency can do whatever they want to stimulate their economy, and we have many successful examples in the world, and Italy was one of them before the Euro
The old Italian model of depreciation of currency is what Turkey now has. Better to finance the deficit at artificially low interest rates, like it’s now doing
Artificial in the sense that the government issued a one-off debt money injection to boost the economy versus sustainable growth through improving the business environment long term. Italy must reduce the stranglehold of the unions, reduce red tape drastically and give incentives to start and expand high technology companies
@@philipopruesse4259 we can cut a lot of welfare especially for immigrants . I also would go to putin trade italy not supporting ukraine for cheap oil and gas and new pipeline to italy trough neutral and russia ally state so that italy would have a competitive advantage over germany the one lost BY germany . On top of that italy needs to rewrite it's burocracy and make reforms
Two objections: 1) it was Conte government, Meloni suspended the subsides 2) you cannot say "it's not real growth", guys, it's Keynes 101, plus sustainable development as the renovated houses are now way more energy efficient than before (you had to go up at least 2 energy efficiency levels in order to get fundsd)
Italian, 39, i struggled the past 10 years just to arrive to the point in which i am now. This point is.. having a sufficient amount of money to convince a bank to loan me more money. To buy a house while being in debt the rest of my life. I changed 5 jobs, i never took any travel or vacation, i muscled through the struggle for 10 years.. For what? For being in debt under my roof. Young italians, especially the ones with good English, go away, don't do this, think for yourselves and escape. Me and few others wil face the bankruptcy at some point, but you don't need to.. Go away
@@L.Parisi IN ONE WORD REVOLUTION AGAINST THE CAPITALIST SYSTEM. JUST COMPARE THE WESTERN CAPITALIST SYSTEM TO BRICS , CHINA ,INDIA , VIETNAM AND RUSSIA .THIS IS WHERE THE FUTURE LIES NOT WITH WAR MONGERING AMERICA
Ma perché un’altri paesi la casa te la compri facile ?!?!?! Io ho 85 anni ho girato Europa medio oriente e tutti i paesi Asiatici ho fatto il mercenario ho rischiato la vita ho combattuto come volontario in medio oriente !!!!!! Avevo 22 anni ….
@@KenHubbard-jz1vqBro wtf are you talking about. Those countries suck asses so much. We are talking about Italy here not about some third world countries. Also those BRICS countries are so different between themselves that it does not even make sense to talk about BRICS' model, because there isn't any. Moreover China and India had their economic growth mostly because they started to follow a capitalist model not because of else.
Fra capisco quello che dici e non ti biasimo. Io studio all'estero da anni ormai ed è qui che intendo completare i miei studi. Nonostante ciò qui all'estero (Olanda) ti posso dire che non è un sogno. Rispetto all'Italia ci sono dei vantaggi di sicuro dal punto di vista economico con stipendi più alti e orari di lavoro diversi. Ma bisogna tenere conto di varie altre cose quando ci si trasferisce, quali le persone, il clima e il costo della vita. Dalla mia esperienza io ti posso dire che ho intenzione di tornare in Italia se possibile. Il nostro paese con tutti i problemi che ha rimane l'unico posto in cui mi sento veramente a casa. Se senti il bisogno di andartene t'incoraggio a farlo come giusto che la gente si faccia le proprie esperienze. Pensa soprattutto che anche se non sai l'inglese la lingua te la impari direttamente all'estero una volta lí, basta avere un po' di buona volontá e ce la fai senza problemi fidati. Tanto nel nord Europa nel bene o nel male parlano tutti Inglese. In ogni caso come ultima cosa io ti dico questo. In nostro paese è nella merda si, ma a doverlo cambiare siamo noi giovani Italiani. Se tutti se ne vanno e manco ci provano allora non stupiamoci che tutto và a rotoli.
@@Federico-je1yr YOU SURELY WOULDN'T CALL RUSSIA OR VIETNAM ,SOUTH AFRICA BRAZIL , ARGENTINA 3 rd. WORLD COUNTRIES THE NATURAL RESOURCE'S OF THESE COUNTRIES IS HUGE , ADD RUSSIA AND INDIA INTO THIS MIX , TAKE AWAY THE AMERICAN PETRO DOLLAR ,TAKE AWAY THERE SANCTIONS THERE MILITARY THREATS AND CREATE A NEW WORLD ORDER, NO NEED FOR THE U S A TO START WARS , THEY CAN TAKE ON RUSSIA LET ALONE THE WHOLE WORLD , THE WORLD IS UNITING AGAINST AMERICAN UNJUST DOMINATION , A AS FOR THE CAPITAL SYSTEM CAN BE MADE MORE EQUITABLE AND IT WORKS FO ALL NOT JUST 2% OF THE POPULATION THEN USE IT WHAT EVER IT TAKES TO GET THE JACKBOOT OFF THE ECONOMIES THEN DO IT , ITALY NEEDS MARKETS ASIA IS THE FUTURE JUST INDIA ,CHINA 3 BILLION PEOPLE AMERICA 330 MILLION , BRICS ADDED ON PROBABLY 3/4 OF THE WORLDS POPULATION WHATS WRONG WITH UNITY
According to the OCSE data, Italy is the only country in Europe were wages decreased in real terms compared to 30 years ago. Italian families live in austerity since then.
@@antoniotorcoli5740 Italy has had no austerity. On a per capita basis the deficit grows. Germany has austerity; Spain, Italy, Greece, Portugal, etc. do not have austerity
@@benchoflemons398 what I meant is that families live in austerity since 30 years since wages decreased since then in real terms. If you prefer, instead of calling it austerity, you can call it misery. It is even more appropriate. The country itself of course never applied austerity since 1973.
The superbonus was also an investment by the government to increase the power efficiency of homes and reduce waste, as it was targeted towards power saving renovations rather than everything: you could replace windows, add insulation, add solar, heatpumps, and heatpump water heaters. It was targeted towards the maaany 1500s to 1950s brick homes we have here with 30 year old furnaces and water heaters, no insulation at all, and old single pane windows that almost leak more heat than leaving them open. You were only eligible for the bonus if your home went up two "energy efficiency" tiers after the renovations. They also pushed solar a lot, to make the country less reliant on foreign gas and oil (when paired with electrification of previously gas appliances - coincidentally you could only add solar to the covered renovations if paired with the other things mentioned above). Remember that Italy's main electricity source is imported natural gas, and it really wants to reduce it as much as possible. Nuclear would be nice, but we have a long bureaucratic road ahead before that. My mom did get solar with one of the bonuses, and it got paired with heatpumps, a new gas-electric hybrid furnace and a heatpump water heater. Imported electricity usage got reduced to 1/3 and gas usage by 1/3. The system also exported 10MWh throughout the year, so for an investment by the government of about 20K€, this home alone supplied solar energy to two-three additional houses that haven't switched to solar (average consumption here is 2.5 - 4MWh a year), energy that they now don't have to buy from abroad. Overall I'd say it was an extremely expensive, but calculated risk the government took.
As if the growth in Germany and the UK over the years wasn’t artificial. The only difference is that they manage to cook the books more effectively. Just look at the Bundesbank scandals and the money laundering going on in the City of London. Strangely, people tend to see only what they want to.
As an Italian, I almost hate my country for its economy. But I often remind people of a thing that is usually forgotten: Italy is still one of the countries with the highest qualities of life, way higher than most countries in the world.
Esatto, concordo. C'è tanta gente che senza pensarci dici "l'Italia fa schifo, l'estero è meglio". Ma io non sono d'accordo. Le grandi pecche sono l'economia, il mercato del lavoro e l'arretratezza su molti temi, ma in generale si vive bene. Già solo per il cibo l'Italia è superiore al 99% degli altri paesi, senza parlare di cultura, storia, paesaggi e ambienti diversi. E questo ci rende una nazione con alta qualità della vita. Poi dipende cosa uno vuole dalla sua vita. Ho vissuto per qualche mese in Germania e non ci vivrei mai: fantastico welfare, servizio funzionanti e gestione del lavoro ottima, ma per ciò che ho elencato sopra Italia > Germania, anche solo per il cibo. Io abito in Trentino e qui si sta una favola, non penso di cambiare, però ognuno scelga la propria strada 🎉
@@mr.wooper6605 finalmente qualcuno che guarda la realtà per ciò che è. Io, ogni volta che mi viene da lamentarmi indiscriminatamente le ogni cosa dell'Italia penso alla moltitudine di nazioni con uno sviluppo e una economia molto inferiore alla nostra e mi rassereno. Dovrai anche ammettere però che il Trentino è superiore al resto d'Italia. Non so se abiti in un paesino oppure in città come Trento (che tra l'altro è la città europea con la più alta qualità della vita), ma tutto la regione è stupenda e ricchissima: io ci vado tutti gli anni in vacanza.
@@laddesansatoredinuvole grazie, finalmente uno che ragiona 👏🏻👏🏻. Abito a Rovereto, a 30 min scarsi da Trento. Rovereto è ormai una città morta e senza nulla, quindi in futuro mi trasferirò a Trento (o dintorni) in futuro, sperando che il costo della vita non si alzi ancora. Sì è vero, in Trentino la qualità della vita è alta e mi dispiace che in molte parti d’Italia non sia così. Non a caso, l'anno scorso Trento si è classificata prima in Europa (parimerito con altre) per SODDISFAZIONE della propria vita. Tu di dove sei invece?
@@mr.wooper6605 io a L'Aquila. Ancora più morta di Rovereto, se consideriamo che è un capoluogo. Ma non mi lamento. C'è molto verde, si può camminare pressoché dovunque, quindi mia accontento. (per la morte della città in sé è da incolpare anche il terremoto). Comunque grazie per questo confronto costruttivo e soprattutto ragionato.
After immigrating to Europe 45 years ago, and now have lived in Italy for 40 years, the paradox of Italy is that it manages to survive because they DON’T pay their taxes as they should. At least based on taxes in personal incomes. There is no accurate way to measure honestly the size of the black market, which I suppose is what and has saved Italy from falling into an economic black hole. Since I’ve been here, 35 of years always seemed to be an economic crisis, just depends what vegetables are floating on top of the minestrone!
We switched from 22 tax quotas to 4. That means that everyone earning more than 50k per year gets the same tax quote as a billionaire. That's plain stupid
Come vuoi che facciamo a crescere se in 40 anni di vita no ho mai visto un governo che abbia investito in istruzione, innovazione o industria. 40 anni di debito pubblico che cresce, di giorni sprecati a dibattere sul ministro che ha detto cazzo al posto di cavolo e di leggi fuffa in vista dell' ennesima nuova tornata elettorale. Per quanto amo l' Italia e gli italiani dal mio punto di vista è un popolo che ha deluso le aspettative e continua a farlo tutt' ora. La speranza arriva sempre dall' estero, ma meglio che nessuna speranza proprio.
As an Italian I can tell you that it is not true that the Italian government was the only one in the EU to give money to businesses, on the contrary rather...
I m old. I have a house- in the UK . I cant afford to repair it. so when I die, some one buys a dump. If I was in Italy, I would get the state funding to fix the house. when I die the governement get govt get more tax on the sale of the house, the neighbourhood houses are in better shape, so young people get a better house in a better nieghbourhood, may they even think to have kids....
Doesn't change the matter of the fact that it's all temporary and due to an injection of money in the system. There's no structural change to improve the actual economic condition of the country.
@@zafiroshin I think you are not informed enough on the recent policies that led have just started to work. Let me know if you are interested and I’ll tell you what they are :)
Inflation on the euro isnt created by the italian government but rather by the ECB printing money so if youre an italian you'd rather your government spend it for you than any other european country spending it for their citizens and still creating inflation for the whole of europe. Obviously that creates a debt problem but my point is inflation is basically irrelevant to this video
@marcoac-sx6lq if I have a net worth of 1 million but 1.3 million debt and +1/4 million debt every year that goes well as long a I can pay interest rate but during crisis this collapses and all my assets will be taken
I haven't met one who doesn't enjoy food, laughs a lot, goes to holidays twice, enjoys bars etc, dresses well and on and on ... in half a century, and yes all you said in the video is true! both descriptions are compatible. mother italian father angloegyptian, greetings from Rome😊
The trouble with subidising property development is it also raises land values which then increase land speculation, the government should recoup those land value increases with land value tax and permanantly untax improvements for sustainable growth.
Your thinking is correct but sadly enough, many many renovating companies have never been paid back. Therefore we have had a wave of company failures in the last two years.
we didn't have any intention to boost growth with renovation incentives. They were engeneered by Mario Draghi as a solution to avoid recession and a rating agencies downgrading, which would have made us spending more in interests on the debt than the whole cost of renovations. All worked out perfectly from this point of view
I understood that the incentives are to invest in home energy efficiency, not renovation. Insulation, photovoltaic panels, heat pumps are examples. Italy imports the bulk of its energy. This is a way to staunch the bleeding.
If people are unemployed, they receive ALL their money from the state AND the costs for healthcare explodes due to a raise in wellfare sickness - if people get a job, they will pay taxes TO the state, including spending more at the grocery and restaurants et cetera et cetera
you forget about one thing. While renovation programs are temp GDP growth, the renovated apartments are staying. More energy eficient apartments will require less energy in the future and the quality of life of the people living in them is also significant. So it was not just a spend, boom, gone scheme but also had a long term purpose. I live in italy and i can see that people have more money and have a little better life than before. Not huge difference but a 1-5% increase which is already good. Italy is doing well, only the debt and goverment spend should be cut on welfare and everything would be even better.
An even sadder detail: during the pandemic the Italian lockdown was very stringent, but in many cases this only made the situation worse. Obviously if you've blocked everything, it's obvious that when you start again you have better growth than other European countries, you're simply catching up.
In my opinion, is Becoming poor and 3rd world? I have been to Slovenia and its better and designed, but Italy it is slowing becoming the 3rd world countries
Very good job, very informative. The situation is very hard to depict so clearly even for us italians that hear these problems every day. My country is on a very bad path, and the real problem is that we have old politicians that don't want to change the status quo. Our salaries are the same as they were in 1990. The education and healthcare system that we brag so much about are on the verge of collapsing due to lacking funds and other problems. The situation It's not going to get any better soon and the majority of people don't get it and vote for incompetent politicians.
the thing about subsidies is;by giving people money to people that must spend,you are helping the economy.the builders will be able to do their grocery,pay rent,and all their expenses. and renovating house to make it more efficient allows people to spend less in the future for utilities.that money was not simply given to people,it was a subsidie made to repay itself in he future.this won't happen for other reasons:people. italy doesn't birth enough to sustain itself in the long term,having one-two kids is the mistake of the west
That is not entirely correct, the superbonus needed an upfront payment and a delayed refund at least a year from the original payment. That means that a lot of citizens was willing to renovate their home and get payed for it but didn't have the money for it. So what happened most of the time citizens relied on loans-like payment, in which the banks took care of the investment and got the refund in full, so citizens got the physical benefit of a better house while bank got the money. I'm no expert in economics so I don't know what this emplies but I'm pretty sure the difference is crucial
It works when it fits the times. A full free market would have killed the post-WW2 economies. Italy would have torn itself apart in a civil war had the trade unions not reach an agreement with the Christian Democracy and their affiliated entrepreneurs.
Even tourism and services is a deceptive argument. Example - there is few if any publicity to Herculaneum, Capua, and public events. And I am a tourist!!
Debt has been the ball and chain of italian economy in the last 30 years. Despite cutting costs everywhere and achieving a primary surplus in the last 20 years, the interests on the huge debt are a heavy burden that eventually turned those primary surpluses into deficit (add to that, that Italy has to pay higher interest rates than e.g. Germany). Sort of a Catch22, sadly. Besides, the Superbonus 110% was an idiocy that will be paid dearly by the country, over many years. 😳
Just some corrections, the funds 110 wasn't made by Meloni, but previous 2 government, a technical government with a mix of parties, one of which was 5Stelle, the one that brought this terrible policy. Second, most of the economist were well aware about the consequences that this policy would have, which is even more scary because they've basically ignored them to keep going with a populist manouver. And now Meloni economic minister (I'm not a supporter at all) is always and openly complaining about this manouver, that we know will have a bad backslash on us in the future
??? Where?? I m Italian..are those who said that serious. Maybe on paper ,but the Italian population has no wage increase since the 90s and price's still doubling.
Italy has a strong economy, especially for manifacturing industry. Our problem are the institutions, wich are slow af and don’t make it possible for us to grow as per our potential. Regarding the bonus for properties renovation, even though it boost inflations, it generates way more value, as spending 50k for the government, when it generates a way more valueable growth in the value of the property, it is still a considerably decent move.
Hey Italian here. We have the most fascist regime since Mussolini. Politicians are focused on giving high corporate positions to family members. As a 31 years old I'm not giving any trust on the future.
3:46 Man what are you talking about.. they stopped funding renovations since before covid ended.. you don't know how many places had to close because they thought that the gouv would pay them back, but they didn't pay.. so some mobsters had been paid. Normal people, they didn't get almost nothing. If you need some info, write me please. You got a vast amount of things wrongs.. I know that it's not only on you.. don't believe italian press.
I was and still working for the italian renovation superbonus and i can say my company went from nothing to winning millions within 2 years just because of this superbonus rennovation, and alot of people opened up business but since the 110 went to 70 i can say alot of people were left jobless and if u hadnt made a name for your business is most likely to fail!
Boom? Bro the welth went and currently is going only in the pokets of rich people. Considering inflation and general numbers, the salaries went down of -9% from 1991. And also the GDP of 31k€ isn't considering the BIG welth difference between boomers and millenials: the second one generally speaking (considering data from north and south combined) have a salary of 1000-1200€/month. But the majority of the population are made of old people and boomer so isn't useful for politicians do laws for change this situation: in other words, the youngest are literally under generational hostage by the old one. It sucks
WSJ, you should talk about hand money out to people. Biden throw out helicopter money without no home-renovation conditions or any other improvement conditions.
I appreciate such "cold shower" videos, but you disregarded important factors, as others already said. Inflation is actually very low, public debt is mostly held domestically, private debt is among the lowest, the industrial capacity is pretty strong, population shrinkage hides even better GDP results, etc. Also, there is still a lot of untapped potential in the country. All it takes to extract it is a decent government.
All I see from here are bussines closing, young thinking to go abroad, rich people getting rich and poor people getting poorer. About the governmental programs to support housing, Greece dis the same, we know all what followed, Spain the same and merely dodged the bullet, and Italy is doing the same, blows my mind how they cannot see it where it goes. Yes there is a growth, inflation is smaller but also ppl are in more debt, they avoid spending, they took down social support and they did what any right government do, cuddling the rich and kicking the poor.
These bonuses were not created during the pandemic, they were there through the 2010s and 2020s. During the pandemic they increased the ratio of refunds, but it was not something newly created, my parents took advantage of these subsidies in 2013 and back then was 70% of the renovation cost. Also these are tax deductions that you can claim over 10 years, but with the super bonus 110% they allowed some fast tracking, that’s what created the short term debt pressure. Anyways I fully agree with the conclusion around the structural problems of the country, I would just not consider these renovation bonuses such a big deal as they have been in place for 20 years and many other countries have the same just called differently. Like in Switzerland we have tax credits on the renovations and extra bonuses on the green initiatives, you won’t claim back 110% of the renovation costs but you can get close to 50% in some cases.
Up to minute 4 it's all quite true, then on the inflation issue there would be some clarifications to be made. The rules on inflation are decided at the political level by the central banks, so the word spread that inflation was an economic evil to be fought, in reality it is simply something that must be managed, it is the EU policies that demonize inflation. Even if the investments of the superbonus are not aimed at growth, they create an indirect spin-off that pushes the economy to grow. In the EU the money that is used is counted unlike other countries and this is what mainly limits Europe, its extreme bureaucracy. So a large influx of money in a period of general stagnation can be very useful to a European country, especially one of the most oppressed in the EU. Annual GDP growth should not be judged individually, since there is a strong increase also based on how much you dropped in the previous year, for example due to the lockdowns without investing in the country and I can assure you that in Italy the government before this one was ruthless, it spent very little and with a strong delay. I conclude by saying that this vision of yours is too pessimistic, you do not consider the reason why Italy remained stagnant in GDP for 20 years, the cause why governments changed after 1 year or two (making foreign policy non-existent) so saying that it will always be like this is a simplistic answer... yes of course I agree that the estimate of Italy as a sudden superpower is exaggerated, but let's say that the truth is in the middle, Italy had never had such a strong government.
Many thanks to RU-vid for recommending this video to me. Public debt is present in all Advanced Countries and is owned by the richest 10% of the population. In Italy the information is provided by the Bank of Italy (Distributional Accounts on Household Wealth). In essence, public debt is a financial asset like any other and its value depends on supply and demand...
Such a great analysis! Thank you for the insight on the home renovation subsidies. Amazing that their budget deficit is over 7% of GDP. The combo of debt and demographics could be a great follow up.
I’m currently earning in Italy a salary way above the medium salary in a northern city. Still, the amount of taxes and the cost of life is way made me consider moving abroad. As many mentioned, the job market is a disaster. I hope I’ll be able to move out soon and offer my son a better future outside the country of free bonuses for votes.
Superbonus 110 was from the "5 stelle" party, who's leader is Conte, but you showed Giorgia Meloni's face only, when her party is actually the one that ended and criticized the bonus...
Imagine I live in this country for almost 18 years, for young people in average to get a job is 6 months and under paid, disparities between north and south, huge and deep corruption and bureaucracy, etc. As immigrant I'm thinking seriously to leave this country.
I’m really sad about the situation in my country… I have a good salary but i’m alone, house prices are too high so if I want to buy a house poverty will be my future. Bonus 110% helped the rich people who have one or even more than one houses and made the poor people even poorer. And to not talk about all the “little” things you have to pay to do almost everything; in my opininion these are the things that ruins the country. For example, want to fix the roof after the storm? Ok, no problem but first pay a 250€ tax to start the works, than 180€ to get the permission, and don’t forget to pay 200€ to get the certificates after the job is done. Believe me, my neighbor had to pay 13.000€ and more than 7000€ were spent to be law-compliant, including 5000 for the support structure around the house!! These things make the difference!
As an Italian, Ive heard on the news and I've stumbled upon many of thrse videos abot our supposed economic growth. I intend to watch this one because my honest reaction was literally "wait. Economic growth?? Where????" I personally haven't felt or seen this economic growth anywhere near me. So I'm interested in these videos. Edit: after watching the video, everything makes much more sense, I was basically 100% sure this economic boom thing was an iperhyped propagandistic move. Thank you for portraing the matter in an objective and educating way
What you said is generally true but there are also good news. For instance, the occupation level is at the maximum of our history. We are benefiting now from an unprecedented political stability which is very positive for a country with a huge debt. Indeed the spread has been relatively low since Meloni entered the office. Let’s see how it goes. I believe we would need to keep this Government till the end of the legislature and even for other five years, and then the debt will remain under control. With political instability and the spread going up our interests on debt will be for sure unsustainable
