Monday, 23 October 2017

Italy's thinking on immigration


Italy is actually a great place to live, and the Italians know it. From an economic point of view they'd probably benefit from Merkel-style mass immigration. But most Italians would rather keep their own version of the dolce vita


Dolce_vita
Tuxedos at Dawn, in La Dolce Vita
Timwork
Tim Hedges
On 23 October 2017 14:24
Whisper it, but there is an air of confidence in Italy which we have not seen since the days of the Lira (still much mourned by the people). Italy’s growth rate has crept up to 1.5 percent p.a., and the country can borrow 10 year money at less than 2 percent (just as well given the size of its debt).
Perhaps to celebrate this, perhaps not, the newspaper Il Giornale (proprietor S.Berlusconi) has published a study by the government statistics unit Istat of where the country is now compared to where it was sixty years ago.
In 1957 the treaty founding the European Economic Community was signed in Rome. Italy at the time was undergoing a post war renaissance. Indeed it was making the change from simple agricultural to modern industrialised economy.
People had FIAT 500s or Vespa scooters, the films of Visconti and Fellini were on at the cinema, the bars and trattorie were full. People were not rich by international standards, but the economy was growing at 5 percent as it did throughout the 1950s and 1960s. La dolce vita - and not just the film - was known all over the world.
But it was not all it seemed in the films. In those days 15 perent of the workforce was employed in agriculture, life expectancy was one of the lowest in Europe and infant mortality was high. Now infant mortality is one of the lowest on the continent, life expectancy the highest and only 1 percent or so of the workforce is engaged in agriculture.
One of the most striking figures from the Istat study is that in 1957 the average age of the workforce was 31. Now it is 45. Only one worker in ten is under thirty; in the UK it is more than double that.
With better survival at birth and better life expectancy Italy is getting older. This is compounded by the extremely low birth rate of 8.7 per 1000, below the population replacement rate, whereas that in Britain and France is above 12, enough to keep the population expanding.
And Italy is getting less skilled. In 1957 emigration was of poor manual labourers, unable to find jobs due to automation in agriculture. Now it is of the young university educated and middle managers, who feel they have no future in Italy’s closed economy. Still, many posts are filled on ’recommendation’: who you know, not what you know.
Immigration is the most constantly discussed topic in Italy, and of course the incomers tend to be unskilled, often with no knowledge of the language. What is rarely mentioned is that immigration is fairly low. The ratio of the population born outside the country is around 8 percent, two-thirds that of Germany, Britain and France.
And this affects the birth rate. Native Italians have little confidence in their future and so either emigrate or apply for public sector jobs from which it is difficult to get fired and which have wonderful pensions. Immigrants by contrast feel a new sense of security. They start up businesses, they breed; their children are educated and the second generation become doctors and engineers and businessmen.
So would immigration be the solution to Italy’s demographic problems? I am convinced that is why Angela Merkel let in a million immigrants: Germany’s birth rate is even worse than Italy’s and soon the working population will be insufficient to pay the retired.
There is currently a vigorous debate on the merits of the ius soli and the ius sanguinis: whether nationality would be determined by whether you were born in this country or whether (as at present) you inherit it from your parents. A change would increase over the years the number of Italians; their taxes would pay for the old.
It won’t happen. The economic migrants (only a tiny proportion are refugees) want to go to Germany, Britain and Scandinavia. And whilst Italians are kindly folk, they really do not want the social upheaval caused by incomers with different lifestyle habits.
The Italians have a good thing going here and don’t want it spoiled, even though the Bel Paese will be underpopulated in a few years time and there won’t be enough workers to pay the retirement benefits of the old.
The food, the wine, the coffee, the weather, the people: it’s good here.
http://www.thecommentator.com/article/6683/italy_s_thinking_on_immigration

Sunday, 22 October 2017

How no Brexit deal really can work, and why it matters

It is quite clear from the different tone of remarks coming from Mrs Merkel, the Commission, and elsewhere within the EU that they are very worried at just how popular the idea of a no deal, WTO model is with many UK voters for Brexit. As reason sinks in, our hand gets stronger. We must use it


by John Redwood MP - 22 October 2017

Wto
The World Trade Organization

I am glad the government is going full ahead with showing how the WTO option can work for the UK, and will do what it takes to make sure we trade and do business after March 2019 if there is no deal.
That is a sensible contingency plan, as well as a good negotiating strategy.
It is quite clear from the different tone of remarks coming from Mrs Merkel, the Commission, and elsewhere within the EU that they are very worried at just how popular the WTO model is with many UK voters.
Brexit voters understand that this model delivers us full control over all our money from March 2019 with no additional payments, full control over all our laws including the laws transferred from the EU with the end of all ECJ jurisdiction, and full national control of our borders from day one out of the EU.
That is what we wanted from Brexit. That is what “taking back control” was all about.
The wider partnership agreement that the UK wants mainly revolves around adding a free trade agreement to that list of advantages from simple exit. The debate is going to be over how much damage should we allow to the many advantages of just leaving in order to secure that free trade agreement. Some seem to think it is worth billions in extra payments, and worth keeping some ECJ involvement. I don’t agree.
I suggest the government starts from a different perspective. It should remind the EU that a deal will only be acceptable if it is indeed better than the WTO “no deal” option.
That does not leave  scope for giving money away we do not owe, or for accepting continuing EU jurisdiction. So first, secure the WTO choice, then I suspect the EU will be more willing to seek tariff free trade which we know it wants.
We do not need to pay to trade. We certainly do not need to pay for talks.
Some say we do need a transition period after we have left. There is sufficient time to put in place all that is needed to conduct our EU trade on the same basis as we currently conduct our non EU trade under WTO rules before we leave. That should be the government’s overriding practical aim for the next seventeen months.
We will only need some implementation period beyond March 2019 if we have an Agreement reached late in the negotiations that requires something different from WTO border arrangements.
I am receiving numerous messages to get on with Brexit and keep to the March 2019 deadline to leave.
Mr. Redwood's writing is re-posted here by his kind permission. This and other articles are available at johnredwoodsdiary.com
http://www.thecommentator.com/article/6679/how_no_brexit_deal_really_can_work_and_why_it_matters

Monday, 16 October 2017

London office sales smash through £13bn barrier after German investment boost

A surge in investment from German and UK property firms has pushed London office transactions past the £13bn barrier.
Buyers from 27 different countries are active in the central London office investment market, estate agent Savills said today.
Monday 16 October 2017 5:03pm
Workers In Offices At Night In London
There have been £13.4bn of office transactions so far this year, Savills said (Source: Getty)

There have been £13.4bn of office transactions so far this year, some 23 per cent than 2016 and 35 per cent ahead of the 10-year average.
German investors have deployed £2.05bn and UK firms have invested £2.4bn. This compares with £250m and £1.2bn respectively in 2016.
“The breadth of diversity in investors active in London in 2017 highlights the continued appeal of the city’s commercial real estate market as an attractive destination for capital,” said Savills central London investment team director Felix Rabeneck.
“London displays liquidity across the spectrum. Sales such as the Leadenhall Building and 20 Fenchurch Street highlight the appetite amongst Asian investors for ‘trophy’ assets. Outside of this sphere of interest, we see assets perceived as non-core attract a broad professional investor base, so long as they are priced realistically.”
http://www.cityam.com/273960/london-office-sales-smash-through-gbp13bn-after-german

The West End wins big property deals as London office space take-up soars

Take-up of office space in central London surpassed a 10-year average in the third quarter this year.
Monday 16 October 2017 5:00am
First Look Inside The New National Cyber Security Centre
Businesses are snapping up office space in the centre of London (Source: Getty)

Central London take-up was 3.4m sq ft, marking a quarterly increase of three per cent, and beating a 10-year average of 3.1m sq ft, according to the latest figures from global real estate advisor CBRE.
The largest deal of the quarter was a 549,800 sq ft pre-let at 21 Moorfields, a proposed development connected to the new Crossrail station. The largest space under offer was a part of The Stage development in Shoreditch.
But the West End was the biggest winner, with three of the deals for spaces over 100,000 sq ft taking place in the area. The largest of these was a move by Dentsu Aegis which pre-let 311,800 sq ft at 1 Triton Square.
Emma Crawford, managing director of London leasing at CBRE commented: “The resilience of the Central London market shows no sign of abating as appetite for prime office space continues to see strong demand, particularly amongst the banking and finance, business services and creative industry sectors which accounted for the highest percentage of third quarter take-up."
Overall take-up of office space so far this year was eight per cent higher than the same period in 2016.
http://www.cityam.com/273915/west-end-wins-big-property-deals-london-office-space-take

London house prices fall at fastest pace since financial crisis

LONDON (Oct 16): London house prices are falling at their fastest pace since the aftermath of the financial crisis, confirming the British capital as the worst-performing part of a slowing market.
Bloomberg
October 16, 2017

Early data point to home values in London declining 2.7% in September from a year earlier, the most since 2009, according to Acadata and LSL property Services. A 0.7% fall in August marked the first negative reading since 2011 as sellers in some of the city’s most expensive boroughs, including Westminster, Wandsworth and Hammersmith, were forced to cut prices.
Outside of London and southeast England, the market appeared more buoyant, with prices on average rising in September by more than 3% on the year, though the pace of growth has been slowing since the end of 2016.
In London, values fell for a sixth consecutive month. If the provisional estimates are confirmed, the average price of a home in the capital was less than 582,000 (US$773,000), the lowest since the end of 2015.
The fall will be welcome news to people struggling to get onto the housing ladder after years of rocketing prices. Prime Minister Theresa May’s government announced an extension of its “Help to Buy” mortgage-assistance program earlier this month.
The downbeat picture was confirmed in a separate report from Rightmove Plc, which said asking prices in London fell an annual 2.5% in October. While they rose 3.1% on the month, driven by owners of more expensive properties, achieving these prices is far from assured as buyers now have more choice, according to Rightmove director Miles Shipside.