The so called “Global Crisis” erupted some three year ago had a devastating impact of European economies and on Mediterranean (MED) Countries. Different States tried different reactions to it, with a strong (but not so effective) coordination of the European Union in this respect. Despite of the efforts for a common reaction, the national different background determined the necessity to implement different ways and means to get out of troubles. In the case of Italy, for example, the huge public debt prevented the Italian Government from the implementation of qualified deficit-spending policies that where the leit motiv in other European States and in the US. Italy pointed on some short scale amendments to tax system, virtually at zero cost. In other words, it amended the way taxes are applied without changing significantly their structural amount (excluding the “once and for all” ones). This approach to taxation (tweaking the way taxes are applied and not their amount) could be another way to interact with MED Countries, different from the one ever used in these cases. More precisely, the author points out the possibility to implement a common concept of permanent establishment for all the business investing in the MED area, and for the southern part of Italy more in particular (considering the business texture of this area and the strongest interactions with other MED States). A common concept of PE (a MED-PE, therefore) based on the OECD one would make investments easier and circulation of capitals too, including the creation of new workplaces with the loss of revenue for the source State possibly compensated by a branch profit tax to be levied on the outbound profits generated by the PE.
Tackling Global Crisis: the Italian Example and the Possible Impact on the Mediterranean Area
GREGGI, Marco
2011
Abstract
The so called “Global Crisis” erupted some three year ago had a devastating impact of European economies and on Mediterranean (MED) Countries. Different States tried different reactions to it, with a strong (but not so effective) coordination of the European Union in this respect. Despite of the efforts for a common reaction, the national different background determined the necessity to implement different ways and means to get out of troubles. In the case of Italy, for example, the huge public debt prevented the Italian Government from the implementation of qualified deficit-spending policies that where the leit motiv in other European States and in the US. Italy pointed on some short scale amendments to tax system, virtually at zero cost. In other words, it amended the way taxes are applied without changing significantly their structural amount (excluding the “once and for all” ones). This approach to taxation (tweaking the way taxes are applied and not their amount) could be another way to interact with MED Countries, different from the one ever used in these cases. More precisely, the author points out the possibility to implement a common concept of permanent establishment for all the business investing in the MED area, and for the southern part of Italy more in particular (considering the business texture of this area and the strongest interactions with other MED States). A common concept of PE (a MED-PE, therefore) based on the OECD one would make investments easier and circulation of capitals too, including the creation of new workplaces with the loss of revenue for the source State possibly compensated by a branch profit tax to be levied on the outbound profits generated by the PE.I documenti in SFERA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
