This week Italy's Interior Minister, Mr. Salvini, is calling for early elections, while other parties are afraid of going to go to elections and loosing influence. From a political point of view, it is not time for elections in Italy, as the country needs to do an agreement with the EU and rebuild its political agenda. But it is also true that if a new government is not formed, Italian Parliament will be likely dissolved.
The mainly problem of this political crisis is that many companies and strong economic powers, which have always backed Mr. Salvini from North-East Italy, now claim to be better heard from the government. Salvini's economic idea is for growth of national product and measures which should encourage enterprises' productivity. But this couldn't be done without solving the problem at the moment of Italy's public debt, which is double than Germany and one fourth higher than France. Italy travels around 132% in terms of public debt/GDP ratio, and Salvini said this is not a problem.
Salvini is the typical strong man that far right movements would like to see in power. Unfortunately, he is backed by economic powers which are interested in Federalism and Flat tax, and the Italian Prime Minister, Mr. Conte disagrees with these two points just mentioned. Flat tax means more money to the 10% richer and less money to the public budget. Consequently, Italian people would get less public services, such as healthcare, education, public transport, ect.
Meanwhile, in order to comply with EU's deficit rules, Italy has vowed to the European Commission that it will be generating € 23 Billion by increasing sales taxes from the start of next year. There are no doubts that Italy needs a new stable government with the aim of helping to raise economic growth rate, create more jobs, and decrease public debt.
