Those who know a little about Italy’s wobbly economy will know that public spending levels are reaching record highs.
So, how could Italy save a few Eurocents? Read on for a list of ten ideas.
Ten Ways in Which Italy Could Save Money
1. Combine Italy’s police forces into one – Italy has three main police forces – the polizia, the carabinieri, and the local polizia municipale. Then there are the financial police – the Guardia di Finanza, and even gun packing forest rangers. Combining this multitude of police forces into one would save a bomb on admin costs and overheads, eventually.
2. Fiscal federalism – this may well be introduced soon. It may make Italy’s local authorities spend more prudently.
3. Introduce local salary contracts – being talked about. There is no sense paying people in the public sector in Sicily the same as people up in expensive Rome and Milan.
4. Start phasing in private pensions – few Italians believe that the government will have enough money in 50 years time to pay their pensions anyway.
5. Cut the number of members of parliament by half - huge savings on the cost of Italian MPs perks, salaries, and extremely generous pensions. Other hidden savings too.
6. Give Italy’s emergency services one single emergency phone number - in the UK you ring 999, and tell them who you need. In Italy, first of all, and when you could really have to do without thinking, you have to choose which number to call – 112, 113, 114, 115, or 118. Not only does this risk life and limb, but it means that there are three or more call centres when there really only needs to be one.
7. Abolish the television licence – no one pays it, and Italy’s state television stations make a bomb from advertising anyway.
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8. Use real paint to put crossing places on Italian roads – up here in Milan, the paint they use to put white stripes on the roads is crap. It lasts about three months before fading away. Great for painting contractors, not great for the taxpayer. Better paint would equal savings. Visible crossing places may even cut down on accidents too – an additional saving.
9. Introduce a luxury tax – why waste time and money trying to catch tax evaders when you can simply raise taxes on the luxury goods they buy?
10. Make most of Italy’s universities online learning institutions – most Italian students live and study at home while doing degree courses anyway.
What do you think? Let us all know.
Have you got any other suggestions? I’m sure you have. If so, comment away!
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Another important one would be the tax system. Right now few people pay taxes fully and if you do, you pay an awful lot. They should reform the whole thing (really top to bottom and back again) to make it more attractive to pay taxes and understand what you are paying. Simpler and more correct.
Stop all consultancy to parliament. Italian parlementarians spend a lot more on consultancy than any other Eur. country. Manyl friends of the elected get some consultancy job sometime.
The juridical system …huge savings should be possible here too. Right now cases (the smaller ones) are being postponed and postoned and each time a sitting is being organised to postpone. All open cases cost money.
… then surely there are many more small things we could do to safe money in Italy, The question is: do Italians want this?
Hi Holli,
Thanks for chipping in.
Ah, Italy’s tax system. If you dig around, you will find that tax levels in Italy are not really any higher than taxes in other European countries. But, I certainly feel they are high – I think it’s the way taxes are implemented –things are far too complex, as you say. It is true that the tax system could do with being reformed –I’d go one step further and introduce many more indirect taxes which would be harder to dodge. Trouble is no Italian government manages to stay around long enough to do something this complex –just keeps on being swept under the carpet.
One might also add that Italian politicians, er, just are not brave enough to do anything –they just want their pensions.
Italy’s politicians are really philosophers –they do endless amounts of thinking.
Stop all consultancy to parliament –great idea and reducing the number of politicians would reduce the number of consultants anyway. And we all know that the ‘consultants’ are don’t do a fat lot – or else the tax and other systems would have been reformed years ago!
Italy’s legal system – some progress has been made –raising the monetary limits on claims which can be heard in Italy’s lower courts. Not enough. The Foxxy Knoxy case is incredible –all gone quiet for the moment– hearings fitted around the lawyers availability. Yep, Italy’s legal system needs an overhaul –but the philosophers are still thinking.
And yes, lots of other things could be done. Do Italians want this? Well, the clever ones would realise that services would improve and taxes fall –meaning that Italy would be a better place for their kids. Trouble is, very few Italians think like this, and those that do, are no longer in Italy.
Actually, I’m not really sure whether Italy needs a national government. I’m sure Italians would prefer to be governed on a regional basis. I don’t think Garibaldi really did manage to unify Italy!
Best,
Alex
Another one…stop meddling in commerce. Italy regulates what hours shops can open, Sunday closings, vacations, not to mention what percent discounts they can offer, when they can offer them, and why. Doesn’t it all seem counterproductive? Wouldn’t a loosening of these rules lead to a boost to the economy and consequently to sales and income tax revenues?
“Italy regulates what hours shops can open, Sunday closings, vacations, not to mention what percent discounts they can offer, when they can offer them, and why.”
Does it Regina? This does not stop the Chinese run stores in my part of the world from opening all hours!
Loosening the rules requires politicians to do some work. But yes, it would help.
Best,
Alex
oooh good point. Here too, but they do stay open with their metal shutter halfway closed
Cheers!
Alex
Alex –
Regarding the idea of paying civil servants differently according to region…. Would this really be a good idea?
Wouldn’t this lead to a migration of all the south’s best talent to the wealthier north — in effect a brain drain?
When you bring this scenario to its logical conclusion, this would likely cause the south to come even further under the sway of the Mafia.
Hi Joe,
“Regarding the idea of paying civil servants differently according to region…. Would this really be a good idea?
Wouldn’t this lead to a migration of all the south’s best talent to the wealthier north — in effect a brain drain?”
- probably not. Many southerners head for the north anyway, but most do so reluctantly, and a job in the public sector here is regarded as a plum job!
As for the mafia factor -the problem is so ingrained now that I doubt that what is being mooted would make any difference at all. And if Italy could save a few bucks, it could have a go at dealing with the mafia -even if this is doubtful.
Best,
Alex