"Many say we are slowing down because of the war. But back in November Confindustria was already pointing out that industrial production was slowing down, the war has only accelerated the process. For months we have been urging the necessary measures to sustain last year's strong rebound - because it was only a rebound - in order to ensure growth of around 4% in the years to come and to be able to cope with the enormous public debt. Yet almost nothing has been done so far. Now the risk is of stagnation which, without structural interventions, may become recession'. Thus Carlo Bonomi, President of Confindustria, in an interview with Il Messaggero, drew attention to the need for urgent action to address the serious crisis triggered by the conflict.

'We are hostage not only to bottlenecks in the supply of raw materials, skyrocketing energy prices, and generalised price increases, but also to decisions blocked by bureaucracy,' stressed Bonomi. Already at the end of December there were signs of this inertia. And when in May 2020 we asked the then government what the new energy plan was, the answer was that we did not need it'. Today, therefore, according to the President, "the energy mix must be changed urgently. The government has changed three versions in five days about the impact of Russian gas. They were already telling us last year that the price increases were transitory and that with the summer, energy prices would fall. I read that even now. It is time to learn from the mistakes of the past, which pushed the country to be dependent on Russian gas for 40% when already in 2014, after the Crimean war, the EU was asking partners to drastically decrease Russian gas imports. Italy, instead, doubled it,' Bonomi noted.

The sectors at risk are numerous and, in this regard, Carlo Bonomi recalled how Confindustria had long warned that the automotive industry would soon enter a crisis and now, with the lack of supplies of Ukrainian wiring harnesses, the sector will be in even greater difficulty. "The international context has completely changed, so decisive action is needed. Under these price conditions, we are unable to meet the 'Fit for 55' targets, while the NRP does not cover the actions needed to replace Russian gasnot only with energy from renewable sources,' the President noted.

Regarding the repercussions of the conflict on the industrial system, Bonomi warned that 'energy-intensive companies under the impact of these prices are stopping production. Steel mills in Sicily started, followed by those in Friuli and Veneto, then ceramics in Emilia, and now paper mills'. Therefore, for the President, the emergency decree that the government is about to pass must provide for "structural measures to remedy this situation before it becomes irreparable', first of all by immediately introducing a cap on gas prices.

According to Bonomi, 'Draghi has done very well in trying to involve Europe, but if the operation fails, Italy must do it alone'. Furthermore, 'we need a transparency operation on existing gas supply contracts. It is a matter, for each operator, of contracts relating to different volumes and times, with different prices and lower than the price of the daily spot gas market, which today incorporates the daily effects of the conflict," he explained, adding that "it is enough to start from those real contracted prices and indicate a fair ceiling that also includes reasonable profit margins, but not linked to the crazy trend of the daily price. It is unacceptable that even today the hourly price of electricity is set according to the least performing plant. At these prices, this means a super premium for those with lower costs, starting with those who produce electricity from renewables. Then, I hear about bonuses for petrol and diesel related to the extra tax revenue. Again, we are not there: indirect taxes on fuels should be cut once and for all. It is not possible for the State at this time to benefit from billions in extra revenue and then only think of lowering the price at the petrol station by 15 cents per litre. In no European country are excise duties and VAT equal to 123% of the industrial cost of fuel. It is crazy that even today petrol and diesel are still burdened with items such as the Suez crisis of 1956, the Vajont reconstruction, the Florence flood, the Friuli earthquake,' the President stressed.

The conversation also addressed the tax issue, on which Bonomi said that the Irpef reduction envisaged in the budget law, amounting to 8 billion, was not at all effective. 'It was explained to us that the moment for business would come with the tax delegation, providing for a structural cut in the wedge. Now we are told that the proxy does not provide for it. For 30 years we were told that there were no resources to do the reforms, now that there are resources in the NRP we expect those reforms that would make the country modern, efficient, sustainable and inclusive to be implemented,' he said.

The President then reiterated the need to a contributory cut in the tax wedge 'to make us competitive again also on labour costs at European level and a real change in the corporate taxation system'. In particular, according to Bonomi, the change should provide for "an ordinary IRES rate of 15%, in line with the international minimum tax, and an additional surcharge of up to 9% for those who prefer to distribute profits instead of reinvesting them. This is what I expect from the Prime Minister: Draghi must do Draghi. Today more than ever. It was he who in times past spoke of good debt and bad debt, now is the time to put those calls for good debt that we all shared on the ground. With the premier there is an ongoing exchange but now is the time to implement measures on companies, listening to them. We have already estimated 400 million hours of redundancy payments due to the impact that the additional energy costs have on industry, it is unacceptable that companies are not being asked to do what is needed. Everyone must assume their responsibilities and no one can hide behind the name of Draghi any longer,' Bonomi noted, adding that 'we are asking the government for courageous gestures. We entrepreneurs are not in the habit of raising cries of alarm, but the time has come to do so. It is the companies that have held the country together during the dramatic moment of the pandemic, they have ensured that medical supplies reached their destination, that food was not missing from the counters, that they have guaranteed jobs and income at a time of great difficulty. The export record in 2021 was set by Italian industry, not by those behind the desks,' the President stressed.

Finally, on companies doing business with Russia, Bonomi highlighted the great responsibility with which Italian companies have shared the heavy sanctions imposed on Moscow. "Yet we have a lot to say: suffice it to mention the 447 companies doing business in Russia, which risk losing investments worth 11 billion and which cannot be abandoned. And I would add that if we don't have the higher inflation in Italy that we have elsewhere in Europe, it is because in recent months the industry has not passed on the enormous extra costs to its customers. But it cannot continue like this,' he concluded.