Mauro Congedo has been finding and renovating small architectural treasures with his brother and father for 25 years in Salento — a peninsula in the southeast of Italy that makes up the “heel” of the boot-shaped country.
The apartments and houses that Congedo restores in this rather remote region are now suddenly finding buyers from Germany and England.
“Things are going well again,” said the 50-year-old architect.
During the coronavirus pandemic, business almost came to a standstill. But what happened afterward in Italy’s industry was “crazy” he says, dragging out the “a” for a long time.
Congedo isn’t the only one enthusiastic about the economic recovery in Italy.
Architect Mauro Congedo works in the Salento region, which offers a lot of coastlineImage: Yuriy Brykaylo/Pond5 Images/Imago Images
Italy goes from problem child to head of the class
While governments in Rome were used to announcing depressing growth forecasts and poor debt rankings in the years before the pandemic, the country is now quickly becoming Europe’s growth engine.
In the last quarter, the Italian economy grew by 0.6%, while the German economy shrunk by 0.3% in the same period. Beyond this short three-month snapshot, other figures for Europe’s third-largest economy are impressive, too.
“The Italian economy has grown by 3.8% since 2019,” Jörg Krämer, chief economist at Commerzbank, told DW. That is “twice as much as the French economy and five times more than the German economy.”
In Germany, the prospects are indeed looking bleak. The Organization for Economic Cooperation and Development (OECD) predicts growth of 0.3% this year for Germany. Leading German experts are only expecting growth of 0.1%. Italy’s economy, on the other hand, is expected to grow by 0.7% this year, according to the OECD.
The Italian stock market is also benefiting from the optimistic mood. The FTSE MIB benchmark index, which is made up of 40 big companies, rose by around 28% last year, more than any other European stock market indices. And Italy is on track for more growth.
Italy’s growth based primarily on new debt
It didn’t always look so encouraging. Economists initially reacted very cautiously when Giorgia Meloni became prime minister in October 2022. During the election campaign, Meloni and her Brothers of Italy party announced a nationalist “Made in Italy” economic course, agitated against migrants and did not clearly distance themselves from Russia.
After her election, the German weekly Stern described Meloni as the “most dangerous woman in Europe.”
But in terms of economic policy, Meloni has so far largely remained on the same course as her predecessor Mario Draghi. This course is paying off for Italy, at least on the bond market. The interest rate at which the county borrows money is back to the level of before she took office.
Things are currently going better economically for Giorgia Meloni than for German Chancellor Olaf ScholzImage: Kay Nietfeld/dpa/picture alliance
At a press conference earlier this year, Meloni tried to take credit for the economic upswing. Above all, the lack of political stability in the past had slowed the economy she said, speaking from a position firmly in the saddle.
But how much of the growth is down to Meloni’s success?
“Not much,” said Krämer from Commerzbank. “The strong growth can be explained by Italy’s loose fiscal policy.”
That means Italy’s growth is based primarily on new debt. While the Italian state’s new debt before COVID-19 was 1.5% of gross domestic product (GDP), it has shot up in recent years and was 8.3% of GDP in the first half of 2023.
The country’s overall mountain of debt is growing, too. In January, the EU Commission estimated that it would exceed 140% of GDP this year and continue to rise in 2025. For comparison, in Germany the debt ratio is 66%, in France it is almost 100%.
Italians received huge state subsidies for construction projects
To help the economy, the Italian state has been funding various home renovation measures since the end of 2020. For some measures they pay around 50% of the cost, others get even more. The most popular is called the “Superbonus 110” for energy-efficient renovations. Through this program anyone who renovated their house or apartment to make it more energy-efficient got the entire expenses reimbursed plus a 10% refund on top through a tax reduction scheme.
“You can imagine that construction investments have skyrocketed,” said economist and Italy expert Krämer. “This effect explains two-thirds of the strong growth we are seeing.”
Italy: A village at the end of the world
Architect Congedo is not overly enthusiastic about the Superbonus 110 program. Everything has become more expensive. On top of inflation, the program drove up the costs of materials and workers.
“If the state pays for everything, then people don’t care how much it costs,” said Congedo. In addition, no one controls the prices. Construction companies from Naples, Bari and the provincial capital Lecce asked him several times to adjust his costs upward. “They wanted me to charge twice as much. I didn’t do it. It feels like stealing,” he said.
He thinks a bonus for the energy-efficient renovation of buildings is a good thing in general. However, owners should have to contribute to the costs and not just get it all from the government. Congedo doesn’t think too highly about Giorgia Meloni either. The only good thing she did was get the Superbonus 110 program under control, he says.
Money from the European Union keeps flowing
In fact, the ultra-right head of government has slowed down the Superbonus program introduced by the left-wing Five Star Movement. In 2023, it covered a maximum 70% of costs and this year up to 65% of the renovation costs.
Nevertheless, the tax credits resulting from the program will significantly reduce government revenue in the next few years. For the government in Rome it is probably very convenient that billions are still flowing — primarily from Brussels. Italy is one of the biggest recipients of the EU’s COVID recovery fund.
By 2026, almost €200 billion ($216 billion) will be paid out to Italy in the form of subsidies and loans.
“The Italian state must reduce its very high budget deficit by this time at the latest,” said Krämer. “If they only start saving then, this Italian growth miracle will probably end because they didn’t use the time for structural reforms.”
Congedo is worried that remnants of the Superbonus 110 program will remain for a long time: “The prices are very high, and we have incurred a lot of debt.”
Luckily, he won’t run out of work anytime soon. He’s currently working on eight projects at the same time.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.
Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.
The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.
“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.
“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”
Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.
The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.
The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.
Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.
More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.
Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.
“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.
Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.
“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.
Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.
Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.
Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”
“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.
This report by The Canadian Press was first published Sept. 18, 2024.
