Contract with the Italians

Berlusconi agreed to move to a system of two rates, a 23% (for incomes up to about 100,000 euros) and a 33% (for incomes over 100,000 euros), with the addition of the exemption from fees for incomes less than 11,000 per year, also provided for the total abolition of taxes on inheritance and donations. The economic measures led to a change of tax brackets. The two aliquots have not been introduced, while taxes on inheritance and donations have been effectively abolished for incomes over 350 million Lire (€180759.91). According to ISTAT data the tax burden from 2001 to 2004 decreased by 0.1%, from 40.7% to 40.6%, while according to estimates by the Berlusconi government, the tax burden from 2001 to 2004 would have fall by 0.4%, from 42.2% to 41.8% of GDP.[1] From the estimates of Marco Travaglio and Peter Gomez, however, the tax burden during the legislature has increased overall, taking into account the increase of local taxes and tariffs.[2]

The district police have been introduced gradually and according to estimates by the Ministry of the Interior in August 2005, arrived about 2200, covering about 500 districts or areas of 10,000 inhabitants (approximately 9% of Italian population). This has not positively impacted on the number of offenses, which increased during the term: in the first two years, from 2001 to 2003, the increase amounted to 6.7% annually.[3] From 2003 to 2004, allegations of crime that have led to prosecution increased by 3.7%.[2][4]

Also in 2001, according to accounts by ISTAT, the number of crimes reported to the police was not 3 million, but 2,163,826.

In 2001, the Italian Labour Union (UIL) has calculated that the elders who received less than one million lire a month pension was 5,901,244, at the end of 2002 rose to about 8 million, according to statistics of the economist Tito Boeri. Those who have actually cashed the increase to one million lire (€516) were 1.8 million, about 25%, while about 6 million continue to receive a pension lower. To keep the promise, would have served from 11 to 17 billion EUR (about 1 and a half points of GDP). Therefore, Berlusconi decided to increase them only to those who was older than 70 years and couples with incomes not exceeding cumulative €6,800 per year (clause not mentioned in the Contract).[2]

The goal of halving unemployment has not been reached. According to Eurostat in January 2001 the unemployment rate was 9.9% (a halving would require to go down to 4.95%), five years later, in 2006 had fallen to 7.1%, a record low in Italy, but still above the 4.95%. The objective of the creation of 1 million and a half new employment, according to data published by Il Sole 24 Ore has not been achieved. In fact, although in 2006 has been reached a historic high of employed amounted to 22.5 million, the total increase in employment was 1,074,000 units, which should be deducted 343.000 regularized workers, then coming down to about 700.000 employment.

The fifth point involved "The opening of the sites for at least 40% of the investment scheduled in the Ten Year Plan for Great Works." Infrastructure Minister Pietro Lunardi claimed that adding up the works under construction and those entrusted, could be reached in June 2006 the 45% of investments. Considering only the actual opening of the construction sites, the data showed that the Ministry of Infrastructure in January 2006 has achieved 21.4% of the planned investments. If the forecasts come true the Ministry of Infrastructure, reported in the budget document known as the Law on goal four years after its approval, could be reached by June 2006 to cover a maximum of 25.4%. It is considered that the time that elapses from reliance, not counted in the Contract with the Italians, until the opening of its site can be significant.[5]