Italy: Mattarella and Draghi duo renewal softens economic and financial world

Posted on January 30, 2022 at 15:36Updated at 5:45 pm on January 30, 2022

Relief has been dominant since the reelection of President Sergio Mattarella of the Republic of Italy, and thus the announcement of his maintenance as Chairman of the Council of Mario Draghi. First, the bailout of Italy’s political class stems from the impasse that its incompetence and its deep fragmentation during elections cannot be overcome. Above all, Italy’s European partners and financial market bailouts.

From the Prime Minister’s Office to rating agencies, consulting firms and Anglo-Saxon economic news outlets, everyone considered the Mattarella-Draghi Tandem to be the only one that could guarantee the third largest economic stability in the euro area. A congratulatory chorus soon took place to welcome the president’s reelection. Starting with Ursula von der Leyen, he assured him of the support of the European Commission and would be happy to work with Emmanuel Macron. Build a united, strong and prosperous Europe “.

The market is already in danger enough to think among the pandemics of Ukraine, the energy crisis, and the pandemic to not add the political crisis of Italy.

Italian self-confidence

With no personality to enjoy the fame and authority to occupy the position of chairman of the board, financial centers were already prepared for the worst. The “spread” difference between Italy and Germany’s 10-year interest rates reached its highest level since the fall of 2020 at the beginning of the year. Do not change the winning team »Thus has become a partisan mantra of maintaining the current institutional balance, regaining the hope of carrying out an unprecedented international trust and modernization process on the peninsula.

The duo of Mattarella and Draghi is ” The best life insurance for the future of the country “, Comment on Trans Alpine Press all at once.” This is the best possible solution, and Confin Dustoria has expressed its satisfaction.Reacted to Carlo Bonomi, President of Trans Alpine Employer. This is a guarantee that strengthens the trust of Italians and businesses that demand that they address the slowdown in growth as quickly as possible. »»

Istat needs to confirm on Monday that it reached 6.5% last year. This is the best performance in the euro area after France. By continuing the announced structural reforms and implementing Europe’s reconstruction plans, it is up to Mario Draghi to ensure that this “new economic miracle” is more than just a mirage.

Accelerate the implementation of recovery plans

Mario Draghi did not want to satisfy the president’s ambitions at the expense of national stability. He is now resuming the actions of his National Unity Government, exhausted by two months of annoying speculation and potential struggle between the parties that support him. Two ministerial meetings are already on the agenda this week to restore his weakened authority.

From soaring energy costs to soaring inflation, there are many cases where business activities and household consumption must be curtailed in order not to slow down. In particular, 2022 will be the decisive year for implementing Europe’s reconstruction plan, with Italy, its first beneficiary, largely guaranteeing success or failure. Skepticism about the ability to (sufficiently) spend € 191.5 billion, including € 123 billion on loans, needs to be silenced. This is three times the sum of all EU countries.

Election deadline

Rome is now proud to meet 51 conditions prior to the first tranche payment of € 25 billion last year. We expect € 39 billion this year. According to Goldman Sachs analysts, Italy’s ability to commit this amount will increase to 60% this year if Mario Draghi is in power.

This objective promises to be much more difficult to achieve due to structural reforms. Head of Government will have to overcome the parties’ resistance to implementing those of the promised taxation, justice, competition or pensions in Brussels. Political forces already prefer to promise Italians for the 2023 legislative election and think about promises that are incompatible with reconstruction plans. Mario Draghi needs all the support of Sergio Mattarella while waiting for the same horror that his cross-alpine political life experienced in a year.