Confindustria President commented on the government’s 2024 budget bill, deeming it “reasonable” in its focus on aiding low-wage earners. However, he criticised its incompleteness, whilst the Audit Court called it narrow.
Confindustria President Carlo Bonomi commented on the government’s 2024 budget bill, deeming it “reasonable” in its focus on aiding low-wage earners. However, he criticised its incompleteness, noting the absence of support for competition and growth. Speaking at a joint hearing of the budget committees, Bonomi stated, “I have described the budget law as reasonable insofar as it concentrates the few available resources on reducing the tax wedge in 2024.” He emphasised the bill’s concentration on supporting low-income families but highlighted the industrial employers’ association’s concerns about the lack of backing for private investment and growth strategies.
The 28-billion-euro budget bill, currently under parliamentary consideration, maintains reductions in the labor-tax wedge for certain income brackets. Bonomi acknowledged the necessity of supporting low-income families during these times, estimating the impact on them to be an additional €560-€1,400. However, he raised concerns about the bill, combined with a tax system review, depriving businesses of one billion euros, calling it a rare instance where an expansive budget takes resources away from the productive system.
Bonomi underscored the imbalance in the budget’s focus, with almost 55% of its measures targeting workers and only 9.4% directed at companies. He urged the need to open a path favorable to growth without delay and criticised proposed tax incentives for hiring, stating that the real issue is a shortage of profiles rather than a lack of employment opportunities. Bonomi expressed his reluctance to use public resources to incentivize hiring, emphasizing that these resources should be allocated to support industrial innovation and investment.
On a separate note, the Audit Court, represented by Guido Carlino, cautioned that the 2024 budget bill treads a narrow path, exposed to the challenges of balancing different demands and navigating a difficult economic and social landscape. Carlino highlighted the bill’s reliance on limited resources within a constrained year-on-year framework, making it susceptible to the stormy weather of the current economic situation.
