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The former ECB president takes the helm of Italy with a diary of reforms and a return to Atlanticism.

After a few years of political instability, in mid-February Italy inaugurated a government that is stronger in principle, headed by Mario Draghi, former President of the European Central Bank. His technical profile , his prestige after eight years in European governance and the formation of a government with a certain national unity character are an opportunity for Italy to overcome the current health and economic crisis and to undertake the reforms that the country needs.

Mario Draghi, accepting the assignment to form a government in February 2021 [Presidency of the Republic].

article / Matilde Romito, Jokin de Carlos Sola

For more than a year, the government of Italian Prime Minister Giuseppe Conte had been strongly contested from within, especially due to the disagreements of Italia Viva, the party led by Matteo Renzi, at subject economic. The straw that broke the camel's back was Renzi's civil service examination to Conte's proposed plan for the use of aid from the Recovery Fund launched by the European Union to deal with the crisis caused by the Covid-19 pandemic. Conte lost his majority on January 13 following the resignation of three ministers belonging to Italia Viva and on January 26 he presented his Withdrawal. On February 3, the President of the Republic, Sergio Mattarella, entrusted the training of the new government to Mario Draghi, former President of the European Central Bank (ECB).

At the start of his mandate, Mario Draghi set out his objectives. He stressed the importance of the country maintaining a certain unity in such a difficult historical moment and indicated that his priority will be to offer more opportunities and fight against the status quo that prevents the implementation of reforms.

On February 17, Mario Draghi obtained the confidence of Parliament, recording one of the largest majorities since the Second World War. management Draghi then formed a government made up of different political forces, with the purpose to face the consequences of the pandemic in a framework of national unity: in addition to various technical ministers (8), the 5 Star Movement (4), the Democratic Party (3), the Lega (3), Forza Italia (3), Liberi e Uguali (1) and Italia Viva (1) are represented in the Cabinet. This internal diversity, which on some issues manifests itself in opposing positions, could lead to some governmental instability.

National policy: recovery and reforms

The Draghi Government has proposed as a priority the vaccination campaign and the economic reactivation, as well as reforms in the tax system and in the public administration and Justice system. The former President of the ECB has shown a certain capacity both for innovation in the organizational Structures and for delegating tasks, all of which will be tackled quickly, according to his maxim that "we will do it soon, we will do it very soon".

Accelerating vaccination

As for the vaccination campaign, Draghi is applying maximization and firmness. First of all, he reformed the administrative summits in charge of the vaccination plan and appointed General Francesco Paolo Figliuolo, a military expert in logistics, as the new extraordinary commissioner for the Covid-19 emergency. By then the daily doses supplied reached 170,000, but Figliuolo, together with the director of the Civil Protection, Fabrizio Curcio, and the Minister of Health, Roberto Speranza, have set as goal to triple that issue. To this end, new vaccination sites have been set up, such as companies, gyms or empty parking lots, and a mobilization of staff has been promoted for vaccination work.

The Draghi government has also adopted greater firmness at the international level, as was the decision to block the export to Australia of 250,000 doses of the AstraZeneca vaccine. Although supported by the EU, the measure took many countries by surprise and made Italy the first EU member to apply such a legal mechanism. On March 12, the Government announced the possibility of future production in Italy of some of the vaccines already approved internationally.

Economicsstructural reforms

The new Government's economic diary will be characterized by structural reforms to promote productivity, as well as by the application of economic aid aimed at those most affected by the crisis, with the goal aim of relaunching the country and fighting against new social inequalities. The Government is finalizing the Recovery Plan to be submitted to Brussels in order to obtain the funds provided by the EU.

During his term as ECB President Draghi promoted structural reforms in several European countries; therefore, his leadership will be core topic for the promotion of reforms aimed at increasing productivity, reducing bureaucracy and improving the quality of Education. The Government promises more expense at Education and the promotion of a more sustainable and digitized Economics , as called for by the EU Green Deal.

Through the "Sostegni" legislative decree, the Government is implementing an aid plan. Some of them are aimed at defraying the modification of the framework layoffs implemented by Conte, but this requires a more consensual negotiation.

Streamlining of public administration and Justice

The reform of public administration has been entrusted to framework D'Alberti, lawyer and professor of Administrative Law at La Sapienza in Rome. The reform will follow two paths: greater connectivity and an update of the competencies of public officials.

In relation to Justice, the purpose is to implement several of the recommendations moved by the EU in 2019 and 2020. Among other measures, the EU calls for a greater efficiency of the Italian civil judicial system, through a faster work of the courts, a better distribution of the burden of work, the adoption of simpler procedural rules and an active crackdown on corruption.

Foreign Policy: Atlanticism and less enthusiasm for China

One of the first consequences of Draghi's election as Prime Minister has been the new image of stability and willingness to cooperate that Italy has come to project not only in Brussels but also in Washington, both politically and economically. Nevertheless, many aspects of Conte's foreign policy will be maintained, given the continuity of Luigi di Maio as Foreign Minister.

Beyond Europe, Draghi's priorities will be mainly two: the new rapprochement with Washington - in the framework of a convinced Atlanticism, within multilateralism - and the reinforcement of Italian policy in the Mediterranean. Draghi's arrival also has the potential to break with the rapprochement with China effected by Conte, such as the inclusion of Italian ports in the New Silk Road. While this may secure Italy as a major U.S. ally, any decision will have to take into account the Chinese investment that may be committed.

Contribution to European governance

Italy is the third Economics in the EU and the eighth in the world, so its economic performance has some international repercussions. Draghi has assured his commitment to the recovery and his contacts with European elites may help to ease the tension in discussions with other EU members on the distribution of funds, especially the so-called Next Generation EU. During the Euro Crisis Draghi was one of the main advocates of structural reforms and now these are again vital to avoid an increase in expense that could cause debt to grow too high or cuts from budget that would hurt growth.

Draghi has stated that "without Italy there is no Europe, but without Europe there is less Italy" and he intends to make Italy a more active and engaged subject in Europe, while trying to balance the interests of France, Germany and the Netherlands. Merkel's departure at the end of 2021 opens the possibility of a power vacuum in the European committee ; with France and Italy being the second and third Economics her partnership could bring stability and ensure the persistence of the Recovery Fund. This in turn may end up causing governance problems with Germany and the Netherlands should there be disagreements over the use of the funds. However, Draghi has been reticent about France's geopolitical proposals to establish Europe as an independent actor from the United States. This may end up poisoning the potential new special relationship between Rome and Paris.

The advertisement of willingness for dialogue and concord with both Turkey and Russia may end up causing problems in Brussels with other countries. In the Turkish case it may compromise relations with Greece in the Mediterranean. However, the strong criticism of Erdogan, whom he called a dictator, for having diplomatically humiliated Ursula von der Leyen in his visit to AnKara, seems to rule out counterproductive approaches. On the other hand, his desire for dialogue also with Moscow may end up sitting badly in the Baltic capitals, as well as in Washington. 

The Mediterranean: immigration, Libya and Turkey

Draghi also referred to strategic areas outside the EU close to Italy: the Maghreb, the Middle East and the Mediterranean. Regarding the latter, Italy's priorities do not seem to change: the goal is to control immigration. To this end, Draghi hopes to establish cooperation with Spain, Greece and Cyprus.

In this area the stability of Libya is important, and the Italian support to the Government of agreement National (GNA) established in Tripoli, one of whose main advocates in the EU has been Luigi Di Maio, who remains at the head of Foreign Affairs, will follow. Libyan Prime Minister Abdul Hamid Dbeibah has declared to be ready to collaborate on Immigration issues with Draghi, but the latter seems to be skeptical towards bilateral deals and will prefer it to be done in a European framework .

This goes against the policy of Greece and France, who support the Libyan National Army, based in Tubruk, because of the GNA's Islamist connections and Turkey's support for them. These differences in relation to Libya have already caused problems and made it difficult to establish sanctions against Ankara.

Seizing the opportunity

The new Draghi Government represents an opportunity for Italy to achieve a certain political stability after years of ups and downs. The integration in the same government of people from different ideological backgrounds can contribute to the national unity required by the present status. The emergency and exceptional nature of the Covid-19 crisis gives Italy an opportunity to implement not only anti-pandemic measures but also radical structural changes to transform Economics and public administration, something that would otherwise be too much of a hindrance.

On the other hand, although within a certain continuity, Draghi's government represents a change in the international strategic chessboard, not only for Brussels, Berlin and Paris but also for Washington and Beijing, given that the more Atlanticist tendencies will distance it from both Russia and China.

Italian governments are not known for their duration and neither does this one offer any guarantee of permanence, bearing in mind that the effort of unity made is due to the temporary nature of the crisis. Nevertheless, Draghi's own profile projects an image of seriousness and responsibility.

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