At midnight yesterday (6:00 in Italy), the United States officially entered Shutdown, that is, the blocking of the country’s administrative activities started. It is the first time in seven years that such a situation occurs, and at the moment and at the moment there is no agreement between the Republicans and the Democrats at the congress regarding the federal budget. But what does it mean concretely and when does it take?
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What is shutdown and activities that are paralyzed
The term “shutdown”, which literally means “shutdown”, refers to a political and economic procedure that involves the US executive every time the congress cannot approve the budget law. In these circumstances, the administrative activities are not refined and stop and continue only the essential ones, linked to the safety of human life and the protection of property. The tax year in the United States begins on October 1 and the congress has until 30 September to approve the federal spending plans, since it is the only organ that holds the power to manage the budget. Without an agreement, therefore the Shutdown takes place and it is precisely what happened in the past few hours.
Shutdown involves the immediate closure of public parks, museums and monuments. The medical research centers, such as national health institutes, suspend the admission of patients, while civil processes and NASA staff are postponed to minimize. Some veterans assistance services are suspended, and state funding for small businesses and individuals undergo delays. But postal services, medical assistance, law enforcement activities and air traffic control and air traffic and meteor services continue without interruption remain active in the USA.
In the USA the first Shutdown dates back to 1976, during the presidency of Gerald Ford. Since then, it has occurred about twenty times, with a maximum duration of three weeks. The best known was that of 1 to 17 October 2013, under the presidency of Barack Obama, caused by a conflict between Democrats and Republicans regarding the financing of the “Obamacare” health reform. Also under the presidency of Donald Trump, several shutdown, albeit short -lived, occurred.
This time paralysis took place in the absence of an agreement on the funds intended for health care. Both parties find themselves in a hard contrast on the question and the Democrats have refused to support a republican law proposal which, according to their point of view, will make it more difficult for Americans to have access to the care and ask for the cancellation of the cuts to the Medicaid made by Donald Trump and the government health agencies.
But how do you get out of the impasse? There are two main routes to overcome the Shutdown: Republicans can extension of the health subsidies required by the Democrats or these will have to yield. At the moment Trump administration has not been willing to make concessions and blame the Democrats of paralyzing the country.
What political and economic consequences for Italy?
Such an impasse in the United States not only an internal problem: its consequences inevitably reflect on Europe, including Italy. Here’s how the shutdown could impact our country.
First of all, a block of federal activities in the United States can generate global economic uncertainties. In particular, Italy, with its economy linked to exports, could undergo a braking of its transactions with the USA, which are one of its main commercial partners. Now European exports to the USA could undergo inconveniences and delivery and arrival times of goods can also lengthen the costs for shipments, while the financial markets could react with turbulence, influencing the prices of shares and bonds also in Italy.
The scientific research sector could also be affected by Shutdown. The US research centers, such as national health institutions, could interrupt the collaboration with Italian researchers and universities, delaying ongoing projects and creating uncertainties in funding. This would affect the entire scientific and technological panorama, including the sectors that collaborate with Italian companies. In addition, the temporary paralysis of the American government could reduce the effectiveness of US diplomacy, slowing down international negotiations in which Italy is involved, such as those relating to trade, safety and international cooperation (in a particularly critical socio -economic situation).
Finally, the closure of national parks, monuments and museums in the United States can affect the tourist flow, in particular for Italian visitors who planned a trip to the USA.
