Dozens Of Italian Businessmen Send Letter To Parliament Demanding Imposition Of Capital Controls Instead Of EPS Cutting Austerity

Tyler Durden's picture

Apparently America's "Patriotic (yet just slightly hypocritical) Millionaires" phenomenon is spreading. In an open letter sent to the Government and to Parliament (we assume the post office can track down the recipients at whatever seaside resort complexes they are to be found), 75 Italian managers, industrialists and professionals, propose what in their opinion is best for the country, which is another way of saying avoiding anything that could potentially crimp their EPS (and take home bonuses) now that Italy is the latest austerity state. And while back in the US, those who are already rich are doing everything in their power to prevent those who wish to be, from becoming so, so in Italy the local upper class is all about instituting countrywide central planning in the form of pervasive capital controls: the one notable proposal is for all cash transactions over €300 to be banned, and to be permitted only in electronic format. We can't decide what is more hypocritical: our own pseudo-nouveau riche trying to pass for magnanimous, when everyone can see right though their act, or the Italians, where the cost of a few more years of profitability has to be borne not just be the middle class but by everyone. We just may leave it as a tossup.

From Linkiesta

Open letter to the Italian government and parliament

Dozens of managers, entrepreneurs and professionals have written an open letter to the Italian government and Parliament because they believe that the proposed budget cuts «fall short of solving the country’s problems». In order to relaunch Italy's economic growth they have put forward four points: a reduction of Italy’s widespread tax evasion by reducing the use of cash, the reintroduction of a propriety tax, a raise in the pension age at 65 years and a raise of VAT.

The budget measures that are currently being discussed in Parliament are unfair and potentially recessionary. In addition they appear wholly insufficient to start resolving the country’s structural problems. Taxation in Italy is too heavy on earned income and too low on rent, in all its forms. This approach is illiberal and an obstacle to wealth production; it must be overturned in order for the country to resume its growth path.

Many proposals could be made, especially on State expenditures’ cuts and on the need to speed up the infrastructure building process that could boost the economic growth of our country (for example, investments in broadband internet and wifi access), but we believe that in this moment a few clear changes to the budget's fiscal revenues are needed without delay.

The budget cuts do have some positive aspects, including an increase to 20% of the taxation on financial income and measures for a more flexible work market; these may support economic growth and enhanced fairness, if they will be accompanied by adequate reforms of the welfare system designed in particular to help younger generations.
On the contrary we think that the so called “solidarity tax” (i.e. a raise in taxation) must be eliminated from the budget, because it penalizes heavily those who already pay a lot, not merely by comparison with other industrialized countries, but also considering the quality of public services and investments.

If the more responsible forces in Parliament will not be capable to avoid this further tax increase, we invite MPs to take into consideration what has been done in the UK, giving high earners (for example, in Italy, those with a taxable income over Euro 300,000 per year) the ability to avoid the proposed tax increase if they invest in the creation of new businesses (i.e. venture capital). Policy should focus on enterprises and their growth, and not on rent.

We believe furthermore that the following points must be taken into consideration, in order to give citizens and markets a signal of fiscal discipline:
1. Strenghtening of the measures to fight small tax evasion that represent a particularly widespread phenomenon; reinstatement of traceability measures for checks; reducing to 1.000 the maximum limit for cash transactions and the introduction of the obligation of electronic payments for amounts that exceed 300 euro, possibly providing the elderly with a credit card through Poste Italiane and / or Banco Posta.
2. Lifting of the retirement age at 65 years for both men and women, which is one of the few measures providing a structural benefit to public finances
3. Reintroduction of the property tax, with a significant deduction for non-premium principal residence. The property tax is necessary for local authorities to provide essential services to citizens, consistently with a “federal” development, and particularly efficient in terms of tax collection because it is connected with “things”. Why was it abolished?
4. A one percent increase in Vat, earmarking the additional tax revenue to the lowering of public debt. In Germany this measure has already been adopted with no adverse impact on inflation or consumption.

Signatories: Carlo Accornero, Giorgio Ambrogioni, Livia Amidani Aliberti, Anna Maria Artoni, Luciano Balbo, Alessandro Balp, Sylvia Bartyan, Orlando Barucci, Riccardo Battaglia, Piero Bendoni, Paolo Bertolino, Cosimo Bisiach, Fausto Boni, Giovanni Bovio, Salvatore Bragantini, Cesare Buzzi-Ferraris, Pia Maria Calabresi, Davide Canavesio, Amedeo Carassai, Cosimo Cardone, Valentina Carella, Gabrio Casati (nome collettivo degli autori del libro Luigini contro Contadini – il lato oscuro della Questione Settentrionale), Mario D’Urso, Rodolfo De Benedetti, Marco Farina, Pietro Fioruzzi, Fulvio Fornaro, Alessandro Fracassi, Andrea Francesconi, Marcello Giustiniani, Alessia Glaviano, Roberta Guaineri, Andrea Guerra, Federico Lalatta Costerbosa, Stefano Landi, Maurizio Lauri, Giovanni Lombardi, Maura Magioncalda, Massimo Malvestio, Francesco Manna, Riccardo Martinelli, Lorenzo Mauri, Maurizio Mauri, Vincenzo Melluso, Oronzo Gaetano Milone, Luca Moroni, Pietro Musolesi, Alberto Musy, Alberto Nanni, Gabriella Pagliani, Auro Palomba, Alessandro Pasquarelli, Chiara Passalenti, Francesco Perilli, Marco Pescarmona, Bruno Prevedello, Ugo Runci, Marco Samaja, Ottaviano Sanseverino, Giuseppe Scassellati, Corrado Sciolla, Alfredo Scotti, Massimiliano Sforzini, Jacopo Silva, Daniele Sottile, Maria Cristina Storchi, Filippo Szego, Andrea Tavecchio, Chicco Testa, Alberto Toffoletto, Pier Giuseppe Torrani, Stefano Venier, Guido Roberto Vitale, Nicola Vitale, Cristiana Vanda Zavoianu

h/t Fabrizio Goria

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pan's picture

Barter bitchez!

MillionDollarBonus_'s picture

It's such a shame to see this country on the verge of credit collapse when they were once one of the most successful examples of monetary stimulus. The Roman empire was built by courageous politicians who had the foresight and genious to start expanding the money supply by reducing the quantity of precious metals in their coinage. It is this brave and bold idea that built one of the most amazing empires in all of history, the likes of which people could hardly have imagined before. Top nobel prize winning economists have studied these success stories and have been strong proponents of monetary and fiscal easing as a result. It's just so sad that these ignorant libertarians are causing a liquidity crisis when we could be living in a utopia.

TonyBoomBoom's picture

Why is this being downrated? It's sarcasm gold! I'm always up for some sarcastic humor!

Sancho Ponzi's picture

MDB sure sounds like Hamy, doesn't he?

JohnG's picture

Unless this is sarcasm you are a world class moron.  Please open a history book and read all about currency debasement.

Koffieshop's picture

Yes exactly. As long as everybody keeps betting on the economy growing to infinity, there will be prosperity for ever.
How is this not clear to everyone by now?

ForWhomTheTollBuilds's picture

Some of us appreciate well written comedy MDB.  The down-voters are totally embarrassing.

spdrdr's picture

Hear! Hear!  That was magnificent droll humour, MDB.  Well done indeed.

russki standart's picture

When in the heck has a tax increase ever solved excessive spending? Nevertheless, they should lead with a tax on the Catholic Church, and ask the Vatican to return some of the TRILLIONS they have stolen over the centuries. 

Oh regional Indian's picture

ohhhhh Russki, an angry old man in a yamulka, weilding a broken cross is going to be sending a Monsignouer your way for such blasphemy. 

It issssssss alllllll lbelongs to gawd. Precious all belongssssssssssss to ussssssssss.......


plonati's picture

In 1870, when the Savoia monarchy conquered Rome, the new italian state seized almost all the properties of the Vatican around the country, including trillions in artworks, starting from the Quirinale palace. This enormous fortune was spent by the monarchy to finance, among other things, the greatest house building program in the country's life, while artworks have become property of the Italian state. This bulding activity was the base on which the italian economy had relied upon for almost half a century. They stole, but they have been stolen. Deuce?

Gene Parmesan's picture

All the maximum on cash transactions will do is force both sides of the transaction to acknowledge that the taxes aren't going to be paid. In my experience, the purchaser knows (and doesn't care) anyway if it means they're getting a better price.

Underground economy is underground.

Negro Primero's picture

Strange,,,, no Machiavelli among the signatories

Sancho Ponzi's picture

Italian version:

'reducing to 1.000 the maximum limit for cash transactions and the introduction of the obligation of electronic payments for amounts that exceed 300 euro, possibly providing the elderly with a credit card through Poste Italiane and / or Banco Posta'

US version: 

reducing to $1 the maximum limit for cash transactions and the introduction of the obligation of electronic payments for amounts that exceed $500, providing the elderly with a credit card issued by JP Morgan, no 'possibly' about it.

indio007's picture

I'm pretty sure we are half-way there. Doesn't JP Morgan adminster EBT cards?

Rockfish's picture

Whith one exception - Political contributions can be made in any form (gold, cash, chickens ..)

entendance's picture

it's never too late for readers here to understand that the only and true news about Italy come from Beppe Grillo's blog




Azannoth's picture

Class warfare, bitchez!

Soon to be followed by Racial warfare(not the stealthy kind we've been fighting for the past few decades) but a more open kind

Religious warfare

and than any warfare you can name

Leopold B. Scotch's picture

Only a matter of time before anyone who bought gold is declared an economic terrorist for not blindly supporting the currency / for refusing to submit to repeated rapings by the policy authority political power oligarchy.

Azannoth's picture

Modern Marxists tend to hate anything that has an image of being strong, good and successful. They hate Europe, America, they hate Western civilisation, they hate white males, and they hate rationality. The reasons that modern Marxists give for hating the West, etc. clearly do not correspond with their real motives. They SAY they hate the West because it is warlike, imperialistic, sexist, ethnocentric and so forth, but where these same faults appear in socialist countries or in primitive cultures, the leftist finds excuses for them, or at best he GRUDGINGLY admits that they exist; whereas he ENTHUSIASTICALLY points out (and often greatly exaggerates) these faults where they appear in Western civilisation. Thus it is clear that these faults are not the leftist's real motive for hating Europe, America and the West. He hates the West because they are strong and successful.

(yes I copy&paste that btw.)

AnAnonymous's picture

How can the West be ethnocentric? Only in a racist mind, one could suppose.

Greeks might be ethnocentric. But how could this lead to the West being ethnocentric?

 US world order.

As to being successful, alas, with success, comes the revelation of the true self. Casting the blame for the state of the world at present times on one other part than the West is a hobby in this US world order, where propaganda is rife, denial of basic facts a genetic urge, dilution of responsibility as vital as breathing.

Oh regional Indian's picture

"alas, with success, comes the revelation of the true self"

That is a brilliant insight AnAnony. Hmmmmm.....


GoinFawr's picture

"(yes I copy&paste that btw.)"

 Directly out of Anders Breivik's manifesto?


Captain Obviousness's picture

But the really important thing to point out here is that Butters' last name is Stotch not Scotch.

trav7777's picture

racial warfare is already open if you are at one of these big state fairs or "black family reunions"

gwar5's picture

Economic Martial Law, Guido style.  That's amore'!  Oh sure, that'll just fix everything right up, spit spot.

magpie's picture

Absolutely hilarious.

sqz's picture

Back to 1950's style capital controls, just before the creation of the Euromarkets (foreign currency short term deposits) by a UK bank (think it was Midland Bank - precursor to HSBC) as a way to bypass strict worldwide government capital controls at the time? We seem to be coming back to full circle. All we need now is a gold/commodity money standard which no longer looks completely implausible. Ironic!

falak pema's picture

He is the hottest news about Italy :

There will be intense competition on this front if the Economy continues to tank. DSK, Berlu, the football crowd, you name it ...every man and his cock rooster...

Silvio Berlusconi Might Write A Book About All The Women He's Slept With

Read more:

Azannoth's picture

I wonder if he includes all the under-age callgirs too ? hmmmm

trav7777's picture

if you were him, wouldn't you?  WTF, hell yes you would

Catullus's picture

The term is oligarchy. And it's caused left liberals in the US in particular to black out and blame everyone and everything except the state which they've entrusted to elevate all of humanity. It's sometimes referred to as the fatal conceit. They've entrusted a organization with a legalized monopoly on violence to "regulate" the free movement of capital, then wonder aloud why there's a greater level of inequality and injustice.

I'm playing the democracy-Santa clause convergence.

MethodMan's picture

The more controls on currency the less useful it becomes. When it become useless to the general population...

New American Revolution's picture

Capital controls, yeah baby, that always works.

nah's picture

cash and PMs are overrated anyways... killing and bribing for influence is the way to future democratic capitol formation

Dick Darlington's picture

Or then You can take the popular path chosen by the greeks for example, say fuck austerity and call it general strike.

hunglow's picture

I drink a double espresso Italian roast each morning.

Helicon's picture

They didn't propose to sell off state assets and gold?

CrashisOptimistic's picture

Speaking of which, another $900 of drop and I might be a buyer.

Stuck on Zero's picture

We're looking at the first opening salvos of the final epic battle for financial supremacy.  It will be the mega-wealthy vs. government employees.  The middle class and the poor have dropped out of the race.

slackrabbit's picture

Great facists to the left, facists to the right...

Fed Supporter's picture

 "the one notable proposal is for all cash transactions over €300 to be banned, and to be permitted only in electronic format."

Cashless Society.

Coming soon to every country near you.

hedgeless_horseman's picture




Revelation 13:17

"So that no one could buy or sell unless he had the mark, which is the name of the beast or the number of his name."

Fed Supporter's picture

I only know one way that all buying and selling can be controlled, that is with electronic money.  Even if it is an electronic currency called XYZ backed by gold, oil or other commodities.

smore's picture

Total Slavery.

Coming soon to every country near you.

If you're lucky, otherwise it's a shallow grave, unless you start planning violent resistance NOW!

Kali's picture

Yes, that's what got me too.  Wow.  A partial ban on cash, full ban soon?  So much for "all debts public and private".  The Italians should be burning down every bank in the country.  And the politicians.  This is a VERY scary development, and, yes, coming here soon.

Mariposa de Oro's picture

So when can we expect our masters to impose these controls on us?