Draghi begins to design reform plan to bail out Italy | International

Mario Draghi will be submitted to the investiture vote of the Italian Chambers on Wednesday and Thursday. The former banker will deliver his first speech as Prime Minister there and show some of his letters. But Draghi has already started to work. He has crucial issues on the table such as the overhaul of the stimulus plan to invest the 209 billion in EU aid (the one made by Giuseppe Conte’s government is unworkable). In return, it will have to undertake reforms of the justice system, the public treasury and the administration. And, above all, decide whether Italy should decree a second major lockdown.

Mario Draghi is already working for Italy. The first meeting of the Council of Ministers, which took place last Saturday, lasted 40 minutes. The former banker refused to ring the traditional bell. No folklore. He asked his ministers not to talk too much to the press. “Be good,” he told them. And his team has reported to the media that they will not release anything until there is something to release. And it was not. This will be the first change a country accustomed to political noise will notice. Draghi and his smaller team come from the business world, where every additional word can cost a lot of money (the three legendary words he said in July 2012 saved the euro). This will therefore be the rule for carrying out a complicated schedule.

Mario Draghi will dress as a politician on Wednesday and Thursday for the first time and make his debut in the Chamber of Deputies and the Senate. He will deliver speeches and his nomination will be voted on. The only question is whether the 5 Star Movement will support it en bloc or crack with a group of opposing MPs. Immediately after, he must clarify the most pressing issues, such as the overhaul of the stimulus package that the previous executive had drawn up and the establishment of a governance body. It will also have to face the eternal problem of the airline Alitalia – which has already cost more than 9 billion euros to public funds – that of the Monte Dei Paschi bank and the Ilva steel industry. He will also have to take an urgent decision on blocking layoffs: on March 31, the deadline given by the previous executive expires and the unemployment rate could skyrocket. All of this, with the first big decision regarding the pandemic.

New containment. Pandemic data is not good in Italy (7,531 infections were reported on Monday). They increase again, as does the rate of transmission for each infected. Top virologists and top health ministry adviser Walter Ricciardi are advising the total shutdown of the country. “It can last one, two, three or four weeks. It depends on how long it takes to reduce the incidence again, ”Ricciardi said. Draghi, aware that the Italian economy would have many problems to resist a new confinement, will have to look for formulas to preserve it. Los datos de crecimiento de Italia (3.4%), penúltima de los 27 países de la UE, estarán de nuevo por debajo de la media de la Unión Europea in 2021. La llegada de Draghi ya ha provocado la caída en picado de la risk premium. Despite this, part of the new government, led by the current League and Matteo Salvini, is pushing for there to be no more closures.

Draghi also wants to speed up the vaccination plan, which began on Monday with the over 80s. Italy is the second country in Europe for vaccine administration rate. But the new prime minister wants to establish a single platform across the country and try to establish a vaccine production point in Italy. The goal is to reach 300,000 vaccinations per day. All this while waiting for the first Italian vaccine (Reithera), which could arrive in June.

No more appointments. Draghi has set up an executive with 23 ministries, 15 of which are occupied by political profiles. It is the surface of a government that will take shape with at least 36 additional posts between secretaries of state and deputy ministers. The most difficult game will be played now, as you will have to restore a balance of power and, at the same time, infiltrate your trusted men in each of the areas.

This Monday, he entrusted the post of chief of staff to Antonio Funiciello, 43 years old. He is a journalist and communications expert who has already occupied a similar place in the executive of Paolo Gentiloni and linked to the orbit of the Democratic Party (PD). Draghi has yet to say who will be his spokesperson.

Tax reform and justice. Reform of the tax system will be one of the priorities of Draghi’s tenure. Already during consultations with the parties, he announced his intention to increase the escalation of rates, just the opposite of the package that the League wanted. The idea that parties have counted these days is that the pressure on incomes below 40,000 euros could be somewhat reduced. But it would be offset by new rules against tax evasion.

The reform of civil justice, entrusted to the new minister and former president of the Constitutional Court, Marta Cartabia, also aims to have an impact on the economy. This is an express request from the European Union as part of the recovery plan. The particularly long and cumbersome processes in Italy do not offer sufficient guarantees to foreign investors. Speeding up public works is another goal. Draghi gave the example of the Genoa model, where the Morandi Bridge was rebuilt quickly and efficiently. Italy currently has 59 large key infrastructure projects. To do this, a major administrative reform must be undertaken to simplify the regulation and the public concession process.

Leadership in Europe. Italy aspires to become the voice of the European Union under Draghi. The year in which the transalpine country will chair the G20 coincides with the withdrawal of Angela Merkel in Germany and it will be the same year that Emmanuel Macron will have to immerse himself in an intense electoral campaign for 2022. After the United Kingdom’s exit from the EU, Draghi will be the most authoritative profile among his peers. “To dream of breaking the Franco-German axis is too much. But it is obvious that there are few voices more respected at the moment on the continent ”, indicate sources of the new executive to this newspaper.

Italy also aspires to conduct relations with the United States. Draghi maintains excellent relations with several members of the new administration Joe Biden. The US president has already said he is eager to “start working” with him and that he could also mediate in recent disputes over European trade agreements with China.

Rebel PD women

Mario Draghi designed an executive in which, apparently, politicians outweigh technicians (15 to 8). But it must be analyzed according to the relevance of the portfolios. Where there is no possible debate on the proportion of women (it is also 8 against 15) and their flagrant absence in the quota of ministries assigned to certain parties.

The paradox is that the Democratic Party (PD) has not given any of its three ministries to a woman. Quite the contrary, for example, from Forza Italia by Silvio Berlusconi, where none of his three portfolios were for a man. The women of the PD rebelled against this decision on Monday. They protested angrily. And the response from Secretary General Nicola Zingaretti was the promise that only women will be elected as Under-Secretaries of State or Deputy Ministers. A decision that even more heated the spirits. PD MEP and former president of the Emilia-Romagna region Debora Serracchiani said in a Facebook post that Zingaretti’s response to fix the problem was like “mending a broken vase with duct tape”. Assistant Laura Boldrini joined the complaint. “A few Under Secretary positions will not be enough. The DP must put an end to the currents that it eliminates. Otherwise, it will end up losing its progressive identity and its social purpose ”.