Italian election pledges for pets, pensions and prostitutes

World
Europe

Italy heads to the polls on Sunday, with the threat of populism in Europe again looming over this election.

Amid crippling debt and high youth unemployment, most parties are looking to increase spending in a bid to court voters resentful of living under austerity.

Instead of looking to reduce a deficit that is around double that of Germany, campaign pledges include free diapers, cheaper pet food and reopening brothels. Read on for more on what each party is proposing ahead of Sunday’s vote.

Unpopular Democrats promise lower taxes

The ruling Democratic Party (DP) has been in power since 2013, struggling to get the Italian economy back on track following years of austerity after the global financial crisis.

While the economy grew by 1.5 percent in 2017 – its fastest pace since 2010 – Italy still lagged far behind the Eurozone, which averaged at 2.4 percent.

Many Italians are unaware of any recovery. Youth unemployment, while down from more than 42 percent in 2014, remains very high at 31.5 percent. The latest data released on Thursday showed overall unemployment has actually increased in the last six months to 11.1 percent.

Matteo Renzi, leader of Italy's Democratic Party and former prime minister, delivers a speech at a general election campaign event in Florence, Italy, on Monday, Feb. 12, 2018. /VCG Photo

Voters are being turned off by the prospect of another DP government, with opinion polls suggesting the party has little chance of winning the election with or without coalition partners.

The DP is promising to reduce corporation tax to 22 percent – which would be the lowest rate in the Eurozone, as well as an increase to the minimum wage to around 10 euros (12.3 US dollars).

With Italy’s birth rate hitting an all-time low in 2016, the threat of an ageing society on an already weak workforce is pushing all of the major parties to promote childbirth.

The DP has promised child benefits of 400 euros (490 US dollars) per month for each baby, coupled with tax breaks until the child reaches the age of 18.

Italy’s average fertility rate stands at 1.34, putting it on a par with countries like Japan and South Korea. In comparison, France has a fertility rate of 1.88.

Forza Italia: Berlusconi backs pets and pensions

While Silvio Berlusconi is banned from a return to office after being convicted of tax fraud, he remains the leader of Forza Italia, despite Antonio Tajani being nominated as its candidate for prime minister.

Opinion polls suggest Forza Italia will head up a winning coalition including far right parties Northern League and Brothers of Italy, with Berlusconi pledging to spend big in a Trump-style bid to inject energy into the economy.

Forza Italia leader Silvio Berlusconi. /VCG Photo‍

Berlusconi has proposed a 23 percent flat tax for individuals and corporations, while doubling pensions to a minimum of 1,000 euros (1,230 US dollars) per month.

The deficit, which currently stands at more than 120 percent of GDP, appears to hold no sway with Forza Italia, with Italian economists suggesting the party’s policy on tax would cost 130 billion euros (159.5 billion US dollars).

Berlusconi has also pledged to honor the EU’s rules limiting debt to three percent of national output, despite not clarifying how his party or coalition would raise funds to reduce debt. In fact, Forza has also told voters it would remove taxes on cars, first homes and inheritance.

Berlusconi, a name once synonymous with debauchery and excess, has raised eyebrows by portraying himself as an animal rights activist in the build up to the election, and a vote for Forza would mean reduced taxes on pet food, and free visits to the vet every 15 days.

Five Star Movement to cut red tape, introduce universal income

The anti-establishment Five Star Movement created by comedian Beppe Grillo is an increasingly strong force in Italy, with some opinion polls predicting it to win more votes than any other party.

While building the bulk of its support on its tough immigration stance, its economic policies are aimed at supporting the poorest Italians, cutting red tape and helping new families amid the declining birth rate.

Luigi Di Maio (L), leader of the anti-establishment Five Star Movement poses with an elderly man for a selfie in Turin, Jan. 12 2018. /VCG Photo

Under Five Star’s proposals, Italians with an income under 10,000 euros (12,270 US dollars) per year would be exempt from paying tax, while every person in the country would receive a monthly universal basic income (UBI) of 780 euros (957 US dollars) per month.

That would make Italy the first major economy to introduce a UBI and boost its popularity with voters, but the high costs involved could be too much to justify such experimentation.

Leader Luigi Di Maio has vowed to cut “400 useless laws,” in a bid to take on Italy’s complex bureaucratic system, establishing a website where voters can select laws they want to get rid of.

New parents would be able to receive free diapers if Five Star comes to power, as well as reimbursements for childcare.

Far-right Northern League to lower taxes, legalize prostitution

Pledging to crack down even harder on immigration than the Five Star Movement, the far-right Northern League (NL) is also proposing some extreme economic policies.

Opinion polls suggest the party will enter coalition with Berlusconi’s Forza Italia, meaning the next Italian government could see NL play a major role in dictating policy.

Like Forza Italia, NL proposes a flat tax – but this time of just 15 percent. Controversial leader Matteo Salvini has pledged a widespread crackdown on tax evasion to offset losses in tax revenues.

Forza Italia leader Silvio Berlusconi wipes sweat off Northern League leader Matteo Salvini during a meeting in Rome, Italy, March 1, 2018. /VCG Photo

NL would lower the retirement age and get rid of pension reforms brought in by the DP, and has threatened to take Italy out of the EU if Brussels fails to meet demands from Rome, which would include exempting the country from certain European financial rules.

One of the more eyebrow-raising pledges is to reopen brothels and tax prostitution, a move that Salvini claims would boost GDP significantly and aid the economy.

The Guardian reports that 20 percent of Italian GDP comes from the “illicit economy,” with Italian statistics bureau Istat suggesting eight percent of that comes from criminal activity, such as prostitution, drugs and bribery.