Storm INPS technical report. Salvini to Boeri, "resign"

In a joint note, the ministers of economic development Luigi Di Maio and of the economy, Giovanni Tria, commented on the recent technical report of INPS, boiled by the State General Accounting Office. "With regard to the technical report accompanying the Dignity Law Decree," the Minister of Economy, Giovanni Tria believes that the INPS estimates on the effects of the provisions relating to employment contracts contained in the decree are devoid of scientific basis and as such questionable ". Then the Deputy Prime Minister Matteo Salvini also spoke. “If the INPS president does not agree on anything of the government's policies, he resigns. I don't know if someone has removed numbers or added numbers overnight. I know that it is a decree that aims to create new jobs and I know for sure that there are some organizations, I am thinking of the INPS, with which I have no personal controversy, because they do not interest me, which however have a vision of reality that it is absolutely far from that of Italians, from that of the world of work, of the world of pensions ”. "When the INPS president continues to say, the Fornero law is not touched, immigrants serve us, because they pay us pensions, this decree creates unemployment in a normal world if you do not agree with any of the political, economic lines cultural and cultural aspects of a government and you represent politically, because the INPS president does politics, another way of seeing the future, you resign ”.

Immediate reply from INPS President Tito Boeri

“The statements contained in the joint note by Ministers Tria and Di Maio address an unprecedented attack on the credibility of two key institutions for maintaining public accounts in our country and able to offer informative support to the choices of Parliament and public opinion. The INPS has been targeted, guilty of having sent a report "without scientific basis" and, in fact, also the State General Accounting Office itself which has stamped a technical report that fully incorporates the INPS estimates. As for the merits, we are on the verge of economic denial. The measure entails an increase in the cost of labor for fixed-term contracts and an increase in costs in the event of termination of the employment relationship for permanent contracts. In the presence of a tightening of the overall labor cost, empirical evidence and economic theory unanimously predict a negative impact on labor demand. In an economy with high unemployment, this means reduced employment. It is difficult to determine the extent of this impact, but its negative sign is beyond question. The INPS estimate is relatively optimistic. It provides that 10% of fixed-term contracts that reach 24 months in duration are not transformed into other contracts, but give rise to flows towards unemployment reabsorbed at the end of the duration of the Naspi. Employment burdens linked to causal are not contemplated. In absolute terms, the effect is negligible: it is 0,05% of employee employment in Italy. It should be noted that the effect, contrary to what some newspapers reported, is not cumulative. In other words, the total number never exceeds 8.000 units in each estimate horizon year. If the aim of the measure was to ensure greater job stability and higher productivity in the future at the price of a small initial effect of reducing employment, these estimates must certainly not scare. On the other hand, this campaign against those who try to place public confrontation on objective grounds is frightening. Aware of the uncertainty surrounding the estimates, we will carry out, as always, the careful monitoring, which the law requires of us. But as of now, in the face of these new attacks - and further attacks by Minister Salvini - I can only reiterate that the figures are not intimidated ”.

Storm INPS technical report. Salvini to Boeri, "resign"

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