OECD: Italian debt risks rising, taxing gold pensions and houses

Our country needs a “lasting” budget adjustment. Thus the Paris-based Institute, which suggests a series of measures, including that of a contribution from those with high pensions but also higher taxes on property and inheritance to lighten those on work. We also recommend the fight against tax evasion and the promotion of digital payments. On the Pnrr: its revision could help make up for the delays accumulated so far

The burden of our public debt risks increasing. The OECD forecast prods Palazzo Chigi: we need to launch policies for a lasting budget adjustment – we read in the latest report on Italy – because growth is slowing down and there is a risk that the debt could rise up to 180 percent of GDP in 2040.

Pensions: no advances and contributions from the highest ones

The indication of the organization of the most industrialized countries would imply a tightening of spending, with cuts to services for citizens or higher taxes. The Institute’s recipe touches on historically unpopular points on the Italian political agenda, starting with pensions, for which it is suggested to gradually eliminate the advance systems that lower the age below 67. But also the reduction of the highest allowances, taxing those who earn more and have a pension not entirely linked to the contributions paid.

Tax assets more and work less

On the savings side, it is hoped that Italy will be more ambitious and review tax bonuses, such as relief for dependent spouses. It is recommended to limit flat-rate schemes such as the flat tax and tax assets more, therefore houses and inheritances, to lighten the burden on work.

Fight against tax evasion and more digital payments

For employment, the Institute recalls the low percentages of young people and women in employment and indicates the need to expand access to the Inclusion Allowance. The OECD encourages us to firmly combat tax evasion, including by stimulating digital payments and lowering the limit on the use of cash.

Pnrr late

Finally, a chiaroscuro opinion on the Pnrr: the revision desired by the government could accelerate its implementation, which with the delays recorded could slow down reforms (starting with that of justice) and economic growth.