Istalia

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Giunio opens to the proposal by D&L: financial sector development under discussion

An agreement on the proposal could cement a foundamental alliance in the name of stability and economic growth

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July 5651

ROMULA – In a politically significant but unusual move, Minister Secretary of State Valeriano Giunio has agreed to submit to the State Council a bill developed by Democrazia & Libertà. It is a package of proposals dedicated to the banking and insurance sector. After the tensions that followed Giunio's decision to allocate additional funds to the Armed Forces, a choice that had generated discontent both within the majority and in relations with D&L, the party has received reassurances from the head of government in recent weeks. These have now materialized with the executive's decision to give formal attention to the proposal, with the prospect that it could be adopted as a government initiative.

The decision comes at the end of a heated debate within the majority, where the Hosian Democratic Union had initially shown strong reservations towards the initiative, fearing excessive liberalization and an excessive advantage for large financial operators. However, it was the decisive intervention of the Liberal Republican Party, the smallest but increasingly influential party in the coalition, that broke the deadlock: the Republicans agreed to temporarily set aside their negotiations on the income tax reform, to favor an agreement that would allow the bill to be discussed.

A significant compromise, which, despite the tensions, confirms not only the solidity of the parliamentary majority that supports Giunio, but also the strategic importance that the government attributes to the collaboration with Democrazia & Libertà that, despite not being part of the executive, has guaranteed external support since the beginning of the legislature on numerous key reforms, especially in the economic, fiscal and labor fields.

The package proposed by Democrazia & Libertà, a set of proposals, many of them detailed, coming from expert economists close to the party, aims to favor the development and competitiveness of the Istalian financial sector. According to the rumors gathered, the main guidelines of the text would include:

• Targeted tax incentives for financial institutions that invest in technological innovation and digital tools for the provision of credit, in particular to small and medium size enterprises and high-potential start-ups.
  

• Regulatory simplifications to encourage the creation of new operators in the assurance, banking and non-bank credit sector. Particular attention will be given to fintech platforms and microcredit instruments.
  

• Greater regulatory flexibility for the establishment of private investment funds specialized in charitable, education, research, artistic sectors and economic strategic sectors, such as energy, infrastructure, applied research and digitalization.
  

• Reform of the financial supervision regime, with the aim of making the regulatory environment more efficient and competitive, while maintaining high standards of transparency and capital strength.
  

• New rules for the strengthening of the insurance sector, which provide incentives for territorial expansion and diversification of the offer, also through public-private partnerships in social areas (supplemental health insurance, supplementary pensions, etc.).
  

The aim is to strengthen the entire Istalian financial services sector, increasing the ability to attract capital, support private entrepreneurship and position Istalia as a competitive hub in the continental area.

The initiative was not at all welcomed with enthusiasm by the opposition forces. The New Communist Party immediately branded the proposal as "a gift to banks and speculators", accusing the government of focusing on supporting financial capital while families struggle to access credit and small savers receive no real protection:

It is yet more proof that the executive works for the economic elite, not for ordinary citizens!

Criticism also comes from the Democratic Socialist Party:

It's a weakening of public regulation in favor of private actors driven only by profit, a wild liberalization that furthermore will expose the markets to crises.

The text is expected to be examined by the State Council in the coming two months. If the proposal is deemed consistent with the general direction of the executive, it could be modified, integrated and finally presented as a formal bill to Parliament. A step that, if it materializes, would mark an important political victory for Democracy & Freedom and would further strengthen the unwritten pact with the Giunio government.