ROME (AP) — Italy’s new populist government won the first of two votes of confidence needed to start governing after its leader denounced Europe’s “failed” immigration policy and warned Tuesday that his Cabinet would renegotiate Italy’s fiscal obligations so it can help struggling Italians.
The 5-Star-League alliance secured 171 votes in favor from Parliament’s upper chamber, well beyond the minimum needed to pass. Another 116 senators voted against the coalition government and 25 abstained.
Lawmakers in the lower Chamber of Deputies, where the two parties also have a majority, are set to cast confidence votes Wednesday that would launch western Europe’s first populist government.
In his inaugural policy address ahead of the Senate vote, Premier Giuseppe Conte readily acknowledged that the 5-Star-League partnership marks a radical shift from the Italian status quo.
“If ‘populism’ is the attitude of leaders to listen to the people … and if ‘anti-system’ means introducing a new system that removes the old privileges of power, then this government deserves both these descriptions,” said the premier, who was sworn into his first political office Friday.
Conte, who until last week was still teaching law classes at the University of Florence, was interrupted with applause nearly three dozen times during his 75-minute speech.
But during the debate that followed, opposition senators from left to right ridiculed the government’s proposed agenda as contradictory, superficial and fiscally unrealistic.
The heavy-spending plan calls for a two-tiered flat tax, a basic income for poor Italians, reforms to the pension system and a “dignified” minimum wage for workers.
“You’re deceiving the good faith of Italians if you’re trying to make us believe that it’s enough just to list these things, without saying how you’ll do it or how you’ll convince Europe,” said Sen. Annamaria Bernini of the center-right Forza Italia, which campaigned in an alliance with the League before the March parliamentary election but voted against the new government.
“Mr. President, you need heavy doses of reality, not just good intentions,” she said.
Conte sought to assuage fears in Europe about his fiscal program, but he offered no details on financing Tuesday and limited his comments to responding to concerns that Italy at some point might leave the eurozone.
“Do we have to repeat it? Leaving the euro was never up for discussion. It is not up for discussion,” he said. “The issue is another: Is it legitimate or not for a government of a country to re-negotiate economic policy?”
Fears of a possible exit strategy were stoked when an early draft of the government’s policy agenda leaked, showing plans to delineate rules to leave the euro and for the European Central Bank to cancel 250 million euros in debt. Those points were dropped in the final policy document.
Conte also said Italy was a “convinced” member of NATO and reaffirmed its “traditionally privileged” alliance with the United States.

“traditionally privileged” alliance with the United States = Weak Lapdog.

Only one-third of the 15 largest copper producers reported positive production trends – S&P Global

25th May 2018 – Henry Lazenby

http://www.miningweekly.com/article/only-one-third-of-the-15-largest-copper-producers-reported-positive-production-trends-sp-global-2018-05-25

German Healthcare Deficit 300% Greater than Expected Due to Refugees

Healthcare costs have been exploding even in Germany. The revisions in healthcare of about two years ago did expand the coverage, but the expanded costs were completely unexpected. That means Germany is also looking to now raise taxes to cover the higher costs due to their legislative reforms. The reforms have brought in more people in need of care and relatives than expected.

Currently, the tax contribution rate for healthcare in Germany is 2.55% of the gross wage and those who are childless pay even more since they lack a family to burden part of the costs. Their rate stands at 2.8% of their gross wage. In the United States, the Medicare tax is a fixed percentage of your gross pay as well with the percentage rate of 1.45%. There is no income cap for Medicare tax, so all of your gross pay is subject to this tax. Your employer pays another 1.45%.

The statutory long-term care insurance deficit in Germany came in at about three billion euros, which was much higher than expected. In fact, it was about 300% higher than the government’s forecasts. The Central Association of Statutory Health Insurance (GKV) has come out and stated that the sharp rise in the deficit was triggered by the reforms of the past two years. The move is to raise taxes even further since once benefits are given, they cannot just take them back. But what is absent from the discussion is the deficit has risen not simply because of the reforms. This sharp increase is due to the refugees who must be taken care of even though they do not work or pay the tax.

https://www.armstrongeconomics.com/international-news/germany/german-healthcare-deficit-300-greater-than-expected-due-to-refugees/