purpose - Dipartimento Politiche Europee

Reform timetable
Ministry of Economy and Finance
September 2014
STRUCTURAL REFORMS
Schedule for reforms
Actions
Mar.
Apr.
May
Jun.
July
Actions
Sept.
Strengthening the Allowance for
Corporate Equity (ACE)
Jobs Act: simplification of
FTCs and Apprenticeships
Reform of civil justice
Social housing plan
Cut in labour tax wedge
(IRPEF and IRAP)
Measures in favour of agriculture and
agri-food industry
Implementation of the
Youth Guarantee Plan for
Italy
Incentives to private investments in
R&D
Open data plan for the
public administration
Strengthening the Central Guarantee
Fund for SMEs
Measures to fight corruption
in the public administration
New resources for networks of firms
and venture capital
Administrative
simplification and efficiency
Reduction of energy costs for
businesses
National plan for school
facilities
Voluntary disclosure of financial
information on undeclared taxable
revenue or income held abroad
Planned
In progress
Done
Reform timetable
2
STRUCTURAL REFORMS
Schedule for reforms
Actions
Sep. Oct.
Actions
Oct..
Nov.
Dec
2014
Simplification and transparency of
local public services
Implementation of ‘Destinazione Italia’
strategy
Simplification and administrative
transparency; efficiency of judicial
offices
Annual law on competition
Full implementation of the National
System for Evaluation of Schools
Measures for environmental and
land protection
Reform of the educational system (on
public consultation)
Reform of the real estate market
National Plan for tourism and culture
Restructuring in rail and local
public transport
Infrastructure plan
FDI attraction plan
Stable framework for settling the PA trade
payables
New framework for Public Private
Procurement
Additional funding to complete the
settlement of PA’s payments in arrears
Reform of the regulatory
framework for road transport
Regulatory review (simplification)
Implemention of the European
Infrastructure Plan
Planned
In progress
Done
Reform timetable
3
STRUCTURAL REFORMS
Schedule for reforms
Actions
2014 2015
Actions
2014
National extension of the experimental
social inclusion programme
Jobs Act: rationalisation of labour
contracts
Implementation of a strategic revision
of national defence
Jobs Act: enabling law to improve
work - life balance
Reform of the maritime sector,
transport infrastructure and logistics
Jobs Act: enabling law to reform
active and passive labour market
policies
Jobs Act: enabling law to
reshuffle unemployment schemes
New electoral law
Constitutional Reform
Reform of administrative justice and
governance
Spending Review
Reform of criminal justice
Healthcare reform
Implementation of the enabling law on
tax reform
Privatisation and dismissals
programme
Reform of the educational system to
overcome skills mismatch
Reform of the public
administration
Approval of the National Airports
Strategic Plan
Planned
In progress
Done
2015
2016
2017
Reform timetable
4
THE INSTITUTIONAL ARCHITECTURE
Electoral law reform
Proportional
system with a
majority
bonus
Winning party
with more
than 37 per
cent of the
vote gets a
majority
(at least of
340 out of
630 seats)
If no party
reaches 37
per cent, runoff for the two
leading
parties or
coalitions
(two-round
system)
A minimum
number of
votes
required to
enter
Parliament
Seats for each
voting district in
proportion to its
population
Electoral
rolls must
ensure
gender
equality
PURPOSE
A stable government over the entire 5-year term.
TIMELINE
The bill has already been passed in the Chamber of Deputies and is now being
considered by the Senate. Final approval is expected in 2015.
Reform timetable
5
THE INSTITUTIONAL ARCHITECTURE
Constitutional reform
Single chamber
(Chamber of
Deputies) is
elected and can
form the
Government.
The new
Senate
represents
localities.
Reduction in
senators from
315 to 143
Lower
legislative
operating
costs
Reform of Title V to
abolish ‘concurring’
State-Regional
powers and redefine
‘exclusive’ powers of
the State and
‘residual’ powers of
the Regions
Abolition of the
National
Economic and
Labour Council
(CNEL)
PURPOSE
Reduce the time needed to pass laws, cut the cost of politics and reduce
conflicting jurisdictional claims.
TIMELINE
Bill has been presented to the Parliament.
Final approval is expected in 2016.
Reform timetable
6
THE STRATEGY
Reduce the tax wedge
Cut personal income
tax (IRPEF) by
approximately €10
billion, funded in part
by savings from the
spending review
Net pay increase of
approximately
€1,000 per year for
employees with pretax earnings under
€26,000
Cut the regional
business tax (IRAP)
paid by companies
by at least 10 per
cent, funded by a
simultaneous
increase in the
financial
transactions tax
PURPOSE
Increase in the disposable income of low earners by reducing the tax wedge and
stimulating consumption. Foster business competitiveness.
TIMELINE
May 2014
Reform timetable
7
THE STRATEGY
Cohesion policy and Southern Italy
Completion of the
spending
programmes cofinanced by the
2007-2013
structural funds,
also by additional
reprogramming
Adoption of the
the 2014-2020
Partnership
Agreement to
ensure a timely
launch of the
new NOP and
ROP
Launch of the
new
programming
under the
Development
and Cohesion
Fund
Make the National
Regional
Cohesion Agency
operational
PURPOSE
Use available EU and national resources to boost the competitiveness, promote
employment and social cohesion, as well as strengthen the administrative capacity to
guarantee the effective use of funds
TIMELINE
August 2014 and 2015-2017
Reform timetable
8
THE STRATEGY
Boost investment and cut energy costs
Boost R&D
investment
and tax
credits for
research
activities and
hiring of
researchers
Tax benefits
for firms to
upgrade
production
capacity
Strengthen the
Central
Guarantee Fund
to support
lending to SMEs
Cut energy bills for
SMEs by 10 per
cent diversify
supplies and
complete
deregulation in
electricity and gas
markets
Implement
‘Destinazione Italia’
with simplifications
and incentives
dedicated to
foreign investors
PURPOSE
Help boost investments focused on innovation and revitalise corporate lending. Cut costs for
SMEs by improving business environment. Promote investment attraction in Italy.
TIMELINE
September 2014 and December 2014 (for investment attraction)
Reform timetable
9
THE STRATEGY
Corporate finance for growth
Expand
institutional
investment in
SMEs,
incentives for
credit
alternatives
such as minibonds
Strengthen and
refinance the
Allowance for
Corporate
Equity (ACE)
Funds for
Business
Networks
Incentives to
invest in
publically traded
SMEs
Support seed
and venture
capital as well
as new
innovative
firms
PURPOSE
Extend the sources of corporate funding, consolidate corporate financial structure
and reinforce business networks.
privati
TIMELINE
September 2014
Reform timetable
10
THE STRATEGY
Facilitate competitiveness and internationalisation
Re-organise
regulations
governing local
public services
and upgrade
municipal
companies and
local utilities
Deregulate and
implement
existing
regulations.
Adoption of the
Annual
Competition Law
Enhance
marketing of
‘Made in Italy’
products
Tax relief and
streamlined
procedures for
FDI.
Strengthen the
Customs OneStop Shop for
Companies
Overhaul rules
governing
deductible costs
of business
transactions with
suppliers in
blacklisted
countries
PURPOSE
Release market potential. Support internationalisation and exports of Italian companies,
facilitate doing business in Italy for foreign companies.
TIMELINE
October 2014
Reform timetable
11
THE STRATEGY
Settle PA trade payables in accordance with EU directives
Electronic
invoicing
compulsory
for the entire
PA by March
2015
Ban on hiring
for agencies
not meeting
payment
deadlines
Possibility to
reschedule
debt in case of
temporary lack
of liquidity
State
Guarantee for
current
payables
transferred to
financial
intermediaries
Payment of
debts through
cash advances
to local
authorities for
additional €13
billion
Fund for
financing
localities’
payments to
subsidiaries
PURPOSE
Turn the account settlement deadlines of general government compliant with the EU
Directive. Full payment of past due payables by the PA.
TIMELINE
October 2014
Reform timetable
12
THE FRAMEWORK
Fixed-term contracts (FTCs) and apprenticeship contracts
Extend the
maximum
duration of
FTCs without
causality
requirement
from 12 to 36
months
Limit FTCs to
20 per cent of
total workforce,
unless waived
by collective
agreements
FTCs can
be
extended
up to 5
times in 36
months
Apprenticeship
contracts must
be
established.
Simplification
of vocational
training
Apprentice
compensation
set at 35 per
cent of
employee
compensation
outlined in the
national
labour
agreement
Digitise the
Social Security
Compliance
Certificate
(DURC)
PURPOSE
Reduce rigidities and streamline the labour market, encouraging the use of flexible
contracts for young people entering the labour market.
TIMELINE
March 2014
Reform timetable
13
THE FRAMEWORK
Streamline contracts and simplify employment procedures
Draft a
unified
regulatory
code for all
forms of
employment
contracts
Introduce, on
an
experimental
basis, a
minimum
hourly wage,
to be applied
to all
permanent
employees
Streamline
and simplify
hiring and
employment
procedures
and
requirements
Require a
single notice
to the PA for
each event,
while the PA
must notify
the other
relevant
agencies
Revision of
the
employment
sanctions
regime
Electronic
communicati
on instead of
paper filing
requirements
PURPOSE
Strengthen opportunities for labour market entry and streamline existing labour
contracts. Streamline procedures related to hiring and employment.
TIMELINE
2014 - 2015
Reform timetable
14
THE FRAMEWORK
Implement Italian ‘Youth Guarantee’ Plan
Young people can
access an ICT platform,
with a network of
customised services on
training, employment and
job opportunities
Lines of actions: i) reception; ii) placement
training; iii) orientation; iv) apprenticeship;
v) traineeship; vi) civil service; vii) support
to self-employment and entrepreneurship;
viii) professional mobility; ix) employment
bonus. These measures will be included in
the ‘Youth Guarantee’ National Operational
Programme
Monitor the
implementation
and financing
of individual
measures
through
performance
indicators
PURPOSE
Ensure that young people (ages 15-29) receive an offer of quality employment, apprenticeship
or training within four months of leaving formal education or becoming unemployed.
TIMELINE
May 2014
Reform timetable
15
THE FRAMEWORK
Employment services, active labour policies and work-life balance
Streamline
existing
incentives for
hiring and selfemployment.
Establish a
National
Employment
Agency
Streamline
entities providing
safety-nets and
active policies.
Upgrade
public/private
partnerships in
employment
services
Universal
maternity
benefit and
social security
contributions for
working
mothers
Tax credit for
female workers
and encourage
employers to
provide childcare services
PURPOSE
Ensure that users can benefit from essential services relating to active labour market
policies nationwide. Achieve work-life balance.
TIMELINE
2014 - 2015
Reform timetable
16
THE FRAMEWORK
Income-support measures and fight against poverty
Revise eligibility
criteria and
procedures to
benefit from wage
supplementation
schemes
Allow access to
the ‘Wage
Supplementation
Fund’ only after all
other possibilities
of reducing
working hours
have been
exhausted
Change unemployment
insurance (Assicurazione
Sociale per l’impiego ASpI), extending it to
short-term workers
Revise the eligibility
requirements for
universal income
support to families
to adjust benefits
and incorporate
features of labour
market inclusion
projects
PURPOSE
Ensure a universal guarantee system to all workers in case of involuntary
unemployment. Launch a programme to fight absolute poverty.
TIMELINE
By 2015. Extend universal income support nationwide by the end of 2014.
Reform timetable
17
THE FRAMEWORK
Modernise the Public Administration (PA)
New regime
for directors
and more
efficient
distribution
of
personnel
Limit
executive
salaries.
ensure civil
servants’
integrity
Strengthen
e-government.
Fully integrate
databases,
statistics and
develop a
national open
data platform.
Regulatory review
to simplify the
legal framework.
Simplify planning
permission
procedures and
reform the
‘Conferenza dei
servizi’
Merge
mandatory
administrative
communicatio
ns into a
single notice
Measures to
prevent and
suppress
corruption and
illegality in
PA.
Legislative
measure to
regulate
lobbying
PURPOSE
Upgrade and improve skills of public employees. Efficiently organise offices. Increase
general government accountability, participation and reuse of public data. Simplify the
regulatory framework and reduce costs.
TIMELINE
2014 - 2017
Reform timetable
18
THE FRAMEWORK
A more equitable and growth-friendly tax system
Simplify the
relationship between
citizens and tax
authorities. Revise tax
expenditures,
company income tax
and consider flat-rate
taxes for smaller
taxpayers
Ensure stable tax rules
and legal certainty.
Protect the environment
through new fuel and
environmental taxes.
Reform the land
register
Improve
transparency and
access to tax
procedures
through ‘tutoring’
and ‘cooperative
compliance’
Allow ‘voluntary
disclosure’ to
repatriate
unreported overseas
assets through a
request submitted
by the taxpayer
PURPOSE
Design a simpler, more equitable and growth-friendly tax system.
Identify unreported income and improve voluntary tax compliance.
TIMELINE
All decrees to be adopted by March 2015. For voluntary disclosure: September 2014.
Completing the reform of the land register will require at least four years.
Reform timetable
19
THE FRAMEWORK
Fast-paced and accessible justice system
Reform of
administrative
justice.
Transparency
and
simplification
of tendering
processes
Improve the
efficiency of civil
proceedings,
accelerate the
process to
obtain a writ of
execution.
Expand
mandatory
mediation
Implement e-civil
proceedings
(Processo Civile
Telematico - PCT)
in all offices, and
rollout of PCT in
the criminal justice
sector
Revise criminal
procedures and
the statute of
limitations.
Introduce the
crime of selfmoneylaundering
Establish
traineeships to
provide
experience to new
entrants into legal
professions.
Increase
administrative
staff
PURPOSE
Improve access to the justice system, primarily for businesses. Design an efficient and
effective system to meaningfully guarantee legal rights.
TIMELINE
For civil justice by September 2014. For administrative justice by 2015
Reform timetable
20
THE FRAMEWORK
Transparency and guarantee of rights
Revise the
prison system.
Non-prison
sentencing
alternatives
Reduce pre-trial
detention in prison
facilities. Increase
cooperation with
surveillance judges
Reduce tax and
social security
contributions for
companies
hiring exconvicts
Specific action
plan on prison
health care
Fully implement
the ‘prison plan’,
to significantly
increase prison
capacity from
2014 levels
PURPOSE
Solve the problem of prison overcrowding, improve prison conditions and increase
rehabilitation opportunities for offenders.
TIMELINE
2014 - 2015
Reform timetable
21
CHALLENGES AND OPPORTUNITIES
A plan for schools
Build new
schools
Implement
safety, energy
efficiency and
anti-seismic
measures
More effective management of
national, EU and INAIL funds for
school construction through a system
of real-estate funds and 30-year
mortgage loans with EIB and other
entities. Set up a dedicated
Government mission unit. Streamline
procedures for awarding contracts
and completing projects
Implement a
Register of school
buildings to
monitor
infrastructure
conditions and
renovation
projects
PURPOSE
Ensure school safety and adequacy, improve infrastructure for students through a more
efficient allocation and use of available funds.
TIMELINE
July 2014
Reform timetable
22
CHALLENGES AND OPPORTUNITIES
Merit, assessments and internationalisation of education
Fully implement
the Regulation on
the use of the
National
Assessment
System in Schools.
Assess and design
incentives for the
best universities
Reward the best
skills by revising
hiring practices
and
employment
contracts for
teachers and
principals
Re-launch the
‘Foundation for
Merit’, to bring the
labour market
closer to the best
students. Provide
fast-track financial
aid to students
Strengthen
student loans
with incomecontingent
repayment
Strengthen the
Erasmus
programme.
Facilitate visas
for students
and
researchers
PURPOSE
Provide schools with benchmarks, as well as with tools to conduct assessment and reward
merit. Increase the number of university enrolments and promote meritocratic systems
rewarding students’ commitment. Increase the internationalisation of Italian universities.
TIMELINE
By 2014. For the National Assessment System: September 2014.
Reform timetable
23
CHALLENGES AND OPPORTUNITIES
An educational and research system open to labour market
Support
apprenticeship,
traineeship and
alternation
mechanism
between
education and
work. Synergy
with the Youth
Guarantee
Strengthen
technical
education to
reward
experience.
Measures to
promote hiring of
researchers by
businesses
Measures to
speed up private
sector research.
Programmes for
innovative startups and university
spin-offs
Extend English
teaching to
primary
schools.
Provide Wi-Fi in
every school
Introduce
digital
technologies in
teaching
methodologies,
language and
content
PURPOSE
Provide students with work opportunities during the school years.
Ensure productivity gains through education, innovation and research.
TIMELINE
2014 - 2015
Reform timetable
24
CHALLENGES AND OPPORTUNITIES
Bringing the private sector on board for major infrastructure work
Appropriate
regulations
on publicprivate
partnerships
(PPP)
Manage tenders
centrally, by
establishing a single
management unit
with specific
responsibilities.
Provide single
standards for
tenders, procedures
and contracts
Establish a national
fund for PPP
investments in
quality infrastructure
projects (Equity fund
for greenfield
projects), in terms of
economic and
financial
sustainability
Set a timeline
for funding
projects
under PPP
agreements
Ensure
transparency
and monitoring
during
construction
and later
stages of
project
management
PURPOSE
Bring private capital on board in the construction of major infrastructure projects and
develop clear private-public partnership arrangements.
TIMELINE
December 2014
Reform timetable
25
CHALLENGES AND OPPORTUNITIES
Complete infrastructure
Complete network
projects, including
the Italian sections
of cross-border
networks. Complete
the European
corridors financed
by the European
Union
Complete reforms as part of the European Network
Design, including: reform of CIPE and project approval
procedures; reform of ‘objective law’ to clarify roles of
various levels of government; as well as the extension
of existing tax rebates and concessions to
telecommunications network
PURPOSE
Provide flexible and innovative regulatory tools to the implementation process of the
major European network infrastructure programmes.
TIMELINE
By 2014
Reform timetable
26
CHALLENGES AND OPPORTUNITIES
The Housing Plan and the real estate market
New resources
for the national
Fund
supporting
access to rent
and mortgages
Plan to fund
renovations of
public buildings
and dwellings,
including energy
efficiency,
electrical, plumbing
and anti-seismic
upgrades
Measures to
promote
renovations to
convert existing
buildings into social
housing estates.
Improved the fight
against squatting
Deregulate
the
commercial
and industrial
rental market.
Facilitate land
use upgrades
Standardise
tax regulations
for Real Estate
Public
companies
(SIIQ) in line
with those of
real-estate
funds
PURPOSE
Support controlled rents and increase the supply of social housing estates.
Facilitate real estate investment and boost the state property federalism process.
TIMELINE
April 2014. For the real estate market: November 2014.
Reform timetable
27
CHALLENGES AND OPPORTUNITIES
Air, sea, rail and road transport
Approve the
National
Airport Plan
Reform the
sea transport
system
through a
Harbour and
logistics Plan
Reorganise local
public transport with
national uniform
criteria. Allocate
public funds based
on performance
criteria with penalties
for non-performance
and effective
monitoring systems
Co-financing of
integrated transport
projects (PUM).
Optimise national
and regional
universal services.
Allow subcontracting
in public
procurement
Reform the
Road Code.
Support
intermodal links
with rail and
sea
transportation
PURPOSE
Streamline the national airport system and reorganise the entire port industry. Industrial
reorganisation of local public transport and rail services. Improve transport services for citizens.
TIMELINE
By 2014
Reform timetable
28
CHALLENGES AND OPPORTUNITIES
Green growth and efficient use of resources
Established a
‘mission unit’ to
implement
measures to
prevent hydrogeological risk
and soil
protection
Clean-up polluted sites of
national interest (SIN).
Relocate heavy industrial
plants currently in
densely populated areas.
Design regulations on
proper waste
management tariffs
Incentivise
environmental
clean-up and
rehabilitation
efforts by polluters
and promote
industrial
redevelopment
projects
Simplify procedures to
access CAP funds.
Establish an Organic
Farming Information
System. Implement
labelling laws to protect
the ‘Made in Italy’
trademark
PURPOSE
Make the most of Italy’s resources, land and environment. Promote competitiveness and
export potential of agricultural sector and the quality of the Made in Italy products.
TIMELINE
November 2014
Reform timetable
29
CHALLENGES AND OPPORTUNITIES
The health sector
Strengthen
prevention policies
to reduce reliance
on the NHS.
Prepare a New
National
Prevention Plan.
Systemise data
collections to enable
the use of electronic
health files. Finalise
the New Health Pact
for the 2014-2016
period
Reorganise hospital
health care, shifting
activities to Regions
and strengthening
service networks.
Strengthen the role of
pharmacies
Strengthen
monitoring of health
care adequacy and
grant minimum
standards of service
provision
PURPOSE
Increase the efficiency and financial sustainability of the NHS, improve the quality and the
appropriateness of services. Improve the local health care system.
TIMELINE
2014 - 2016
Reform timetable
30
CHALLENGES AND OPPORTUNITIES
Tourism and culture as drivers of growth
Adopt the
National Strategic
Tourism Plan.
Introduce financial
tools to
encourage
entrepreneurs
and upgrade
facilities
Support tourist and cultural
business networks. Grant
incentives to greenfield and
brownfield tourist
development projects that
create jobs. Start a
digitisation plan to increase
the online presence of hotels
and tourism facilities
Develop a
single set of
nationwide
regulations on
hotel
classification,
establishing
minimum
standards of
excellence
Encourage
investment, develop
specialised tourist
centres, primarily in
Southern Italy.
Improve the schools
for professionals in
tourism related
services
PURPOSE
Take advantage of the Italian tourism potential.
Affirm the uniqueness of Italy by protecting and promoting cultural activities and assets.
TIMELINE
October 2014
Reform timetable
31
CHALLENGES AND OPPORTUNITIES
Revitalising the country’s deprived areas
Implement the
National Strategy
for Deprived Areas
by identifying, in
agreement with
Regions, a project
prototype in every
Region and
Autonomous
Province
Use national
resources to
improve
education,
health services
and transport
services in
deprived areas
Direct EU funds,
supplemented by
national funds, towards
development projects
enhancing natural,
cultural and productive
assets, including local
traditions, in deprived
areas
Define a timeline to
implement an overall
strategy for deprived
areas. Ensure
effective coordination
among levels of
government and
enforce permanent
monitoring of funded
initiatives
PURPOSE
Reverse current population trends in deprived areas, by enhancing their development
potential and bringing essential services in line with the needs of residents.
TIMELINE
2014 for the actual start of 21 prototype projects, one for each Region and Autonomous
Province. A financial report on progress of the funded initiative will be submitted to CIPE
by November 2014.
Reform timetable
32
COUNTRY’S RESOURCES
Compliance with the European rules, flexibility and spending review
Apply flexibility for
reforms with mediumand long-term impact.
Mitigate any short-term
negative impacts, and
allow the full use of
structural funds for
investment and the
Youth Guarantee
Pursue the strategy to
settle the Public
Administration’s
payables according to
the arrangements
agreed with the
European Union
Realise savings from
the Spending Review
€4.5 billion in total
savings in 2014
€17 billion by 2015
and €32 billion by 2016
PURPOSE
Ensure the deficit does not exceed 3.0 per cent of GDP and adopt the best strategies to
comply with the debt and structural balanced budget criteria.
Fully implement the Spending Review.
TIMELINE
October 2014. 2014-2016 for Spending Review.
Reform timetable
33
COUNTRY’S RESOURCES
Privatisation and real estate divestment
Divestment of stakes in
companies directly or
indirectly owned by the
State, through annual
privatisation plans
Full implementation of
State property
federalism.
Strengthening of the role
of INVIMIT to increase
the value of and
divesting State property
Design instruments to
deliver effective and quick
divestment procedures at
local level, as well as townplanning regulations
especially designed for
achieving these goals
PURPOSE
Restore greater efficiency and competitiveness to the economy, promote the development of
the stock market, reduce public debt and enhance State property values.
TIMELINE
Divestment and privatisation Plans for 2014-2017 for 0.7 per cent of GDP per year.
Reform timetable
34
BRING ABOUT CHANGE IN EUROPE
The Italian presidency of the EU
Place growth and
employment at the centre of
European policies. Revitalise
the EU 2020 Strategy to focus
on employment and poverty
reduction, giving impetus to
the reform process by
allowing the fiscal flexibility
necessary to implement
productive reforms
Continue efforts to
complete the Economic
and Monetary Union,
building upon the
December 2013 Report
‘Towards a Genuine
Economic and
Monetary Union’
Promote better use and
monitoring of European
resources (Structural
Funds, EIB, Youth
Guarantee, Flagship
Initiatives). Proceed with
the banking union to
deliver on the agreed-upon
commitments
PURPOSE
Revitalise the European growth strategy and reduce social inequality.
TIMELINE
Second half of 2014
Reform timetable
35

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