Stability pact, Giorgetti vs LSD: model on laxity, subsidies and debt

The Def passes the House and the Senate

The Chamber approved the majority resolution on the Def with 197 votes in favour, 126 votes against and 3 abstentions. Subsequently, the green light arrived in the Senate Chamber for the resolution presented by the majority on the Economic and Financial Document with first signature by Lucio Malan, group leader of FdI: 96 yes, 66 no and 2 abstentions. The other resolutions presented did not receive the government’s positive opinion and were not put to the vote. The text commits the government to present the programmatic framework as soon as possible, within the medium-term fiscal and structural plan”. Immediately after the vote on the majority resolution at the Def, the President of the Senate Ignazio La Russa convened the Conference of Group Leaders .

Def, Giorgetti: “We have invested in work and in favor of low incomes”

“The stability pact approved yesterday in the EU is certainly a compromise. It is not the Italian proposal, brought forward repeatedly by the undersigned at the European level, which seemed coherent to us because it was going to reward investments. But when 27 of us discussing, we need to be able to obtain what is possible and reasonable. What has been obtained is certainly a step forward compared to the budget rules that would come into force starting next year”. The Minister of Economy Giancarlo Giorgetti said this during the debate in the Chamber on the Def.

EU: Giorgetti, growth not with laxity, subsidies and debt – “This stability pact does not exactly meet the criteria of those who think that growth depends on the LSD model, i.e. laxity, subsidies and debt. I continue to think that the growth model is what made this country great in the post-war period, which passes through sacrifice, investment and work”. The Minister of Economy Giancarlo Giorgetti said this during the debate in the Chamber on the Def.

Def: Giorgetti, government deserved the trust of the people, the Chamber and the markets – “I think that this government has deserved the trust. First of all that of the people, I think that seeing the electoral results this is there. The trust of Parliament, and this is there. In a parliamentary democracy with a debt as high as the Italian one The trust of the markets also counts, which we deserved.” The Minister of Economy Giancarlo Giorgetti said this during the debate in the Chamber on the Def.

Def: Giorgetti, invested in work and in favor of low incomes – “It was contested by someone who lacks programmaticism in this Def: whoever wants it can find it. The trend in the employment rate, in particular the female one, an absolute record, means that we have invested in work and not in subsidies. We will continue to invest in parenting support, because with the birth rates we have in the country there is no subsidy that matters”. The Minister of Economy Giancarlo Giorgetti said this during the debate in the Chamber on the Def. “I contest that the government has made a policy against low incomes – he added – it’s exactly the opposite: everything this government has done has been done in favor of the lowest incomes”.

Related

The share of the yuan in settlements through the international SWIFT system in March reached a historical record of 4.69% after a decline in February, according to system data reviewed by TASS, Day.Az reports.

The highest share of Chinese currency in payments via SWIFT was recorded in November 2023, when it rose to 4.61%.

At the same time, the share of the euro in March decreased to 21.93% from February levels of 23.25%. The dollar continues to be the most popular currency for international payments, increasing its share in March to 47.37% from 46.56% in February.

Also traditionally, the British pound has entered the top three in international payments. Its share in March was 6.57%, down slightly from February levels of 6.9%.

SWIFT is an international interbank system for transmitting information and making payments. About 10 thousand financial institutions in more than 200 countries of the world are connected to it. After the introduction of sanctions, SWIFT ceased to be the main channel for Russia, where the main exchange takes place through the Financial Message Transmission System of the Central Bank of the Russian Federation (SPFS, the Russian analogue of SWIFT), which by the end of 2023 has 556 participants from 20 countries.

Automotive sector

Tesla shares rose sharply after disappointing quarterly results. The promise that a new cheap model will come onto the market next year convinces investors that improvement is on the way.

Investors prefer to look forward rather than backward. This stock market wisdom was once again underlined by the price reaction of the Tesla share. It gained 11.8 percent after poor first-quarter results. Sales fell 9 percent to $21.3 billion. Net profit halved to 1.13 billion and during the first quarter Tesla burned more cash than it took in due to the many investments. It had been since 2020 that the car company had been in that situation. Those poor figures were not entirely a surprise, as Tesla had previously published poor sales figures. Tesla sold 8 percent fewer cars in the first quarter, because of the slowdown in sales of electric cars and competition from China. That bad news was already incorporated into the stock price.

Investors were mainly interested in the prospects. Many doubts have arisen about Tesla’s growth strategy in recent weeks. Elon Musk had said that Tesla should focus on the Robotaxi, a self-driving car, and much less on the cheap ‘Model 2’. However, the market was counting on the $25,000 model for a new growth spurt.

Earlier than expected

CEO Elon Musk has now assured that that car will be available and even sooner than expected: a cheap Tesla should roll off the production line by the middle of next year. The car manufacturer is changing its plans. Initially, Tesla wanted to build the car on new production lines that were designed in a revolutionary different way. Tesla has decided not to do this for the time being. It will build the Model 2 on the existing lines, allowing the cars to enter the market earlier and achieving better utilization of the existing assembly lines in the four factories. They can theoretically build 3 million cars per year. Tesla is confident that it can produce 50 percent more cars in this way, without having to invest in new expensive factories.

In this way, Tesla is more similar to classic car builders, who also build multiple models on the same line. The disadvantage of such a flexible line is that it requires more manpower. In Musk’s original plans, that cheap car had to be built on a new, extremely automated line.

Musk did reiterate his belief that Tesla will be the first to crack the code for self-driving cars. Artificial intelligence would convert the many data from the driving Teslas into an operating system. Anyone who does not believe that Tesla will be the first should not invest in the stock, the CEO said during a conference call.