Economy

How a home-improvement subsidy is actually damaging Italy's public financial resources

.ONLY THINKING about it "offers me a belly ache", mentioned Italy's money management minister, Giancarlo Giorgetti. He was describing a home-improvements subsidy that has actually become the economic equivalent of Master Kong: a beast cutting loose, ruining the country's seldom-robust public accounts. On April 9th Mr Giorgetti exposed that insurance claims of the aid, known as the "superbonus", created in the 4 years that the scheme has been actually running, alongside insurance claims of an additional that offsets the price of refurbishing fau00e7ades, would inevitably drain pipes the treasury of EUR219bn ($ 233bn). That is actually almost 10% of Italy's GDP in 2014. How on earth performed factors come to this aspect?