Read news from:
Austria
SHARE
COPY LINK

POLITICS

Coronavirus bailout is ‘an opportunity to design a better Italy’, says PM Giuseppe Conte

The €170 billion recovery fund granted to Italy by the EU is a chance for the country to invest in reform and catch up with its European neighbours, the prime minister says.

Published: 17 June 2020 09:20 CEST
Coronavirus bailout is 'an opportunity to design a better Italy', says PM Giuseppe Conte
Prime Minister of Italy Giuseppe Conte this week. Photo: Tiziana Fabi/AFP

Italian Prime Minister Giuseppe Conte on Tuesday sought to reassure Europe that forthcoming coronavirus recovery funds would be spent wisely to revive the battered economy after a crippling lockdown.

In an exclusive interview to AFP, the leader of Europe's third-largest economy said Italy's share of the €750 billion recovery plan agreed by the European Commission would be the impetus to fix longstanding problems at home.

Economists say entrenched structural problems have put the brakes on progress for decades. They include Italy's burdensome public bureaucracy, sub-par infrastructure, including slow adoption of digital technology, and widespread tax evasion.

READ ALSO:

“It's an opportunity for us to design a better Italy, to work on a serious, comprehensive investment plan that will make the country more modern, greener, and more socially inclusive,” Conte said.

The first European country to be hit by the coronavirus pandemic, Italy is reeling from the economic effects of a lockdown imposed in March to stem the spread of the virus that has killed nearly 34,500 people.

“I often say it's not a handout to benefit the current government, it's an investment we must make in Italy and in Europe for our children and grandchildren,” Conte said.


Conte at an EU summit in February. Photo: Aris Oikonomou/AFP

After months of wrangling among EU leaders and opposition from northern European countries, the European Commission in May agreed an unprecedented recovery plan, comprised of €500 billion in grants and €250 billion in loans. 

Under the biggest EU stimulus package in history, Italy is expected to receive €172 billion, the largest share.

READ ALSO: 

Italy and Spain had fought hard for a deal that would prioritise grants rather than loans, against the wishes of northern EU member states who insisted on a loans-only rescue package. On Tuesday, Conte had words of praise for his European partners, saying he recognised that in Germany, “there was a great internal debate” over how Europe should respond to the economic crisis set in motion by the coronavirus.

“Compared to the very rigid initial stances, there has been an improvement,” he said. “Germany has understood that it would not be appropriate for it either to have a Europe, a single market, that is so divided and fragmented.”

Conte said he and France's President Emmanuel Macron had “shared this battle from the beginning”, referring to early French support for Italy's call for budget solidarity within the EU. “We were among the protagonists of those who immediately called for a strong, solid and immediate European response,” Conte said.

As for post-Brexit negotiations with Britain, Conte said the month of July would be “crucial” but he was confident that a solution would be found “in the mutual interest of the parties”.

“Especially during this pandemic, it's of no use to the EU or to the UK if an agreement is not reached with a historic partner like the UK.”

READ ALSO: 

Conte will head to Brussels in September, where he will present a detailed plan for how the EU funds will be spent. Broad outlines of that plan are being debated at a general assembly organised by Conte that began in Rome on Saturday and is due to continue until June 21st.

With Italy's economy expected to shrink at least by 8.3 percent this year, the country's main employers' organisation has sounded the alarm, calling for serious reforms and a plan to help businesses facing potential bankruptcy.

The prime minister has invited economists, academics, unions and business associations, as well as EU leaders, saying he wanted to unite “the country's strongest forces” to come up with ideas for Italy's economic rebound while removing structural and bureaucratic barriers.

Priority areas include the green economy, investment in research and training, the modernisation of Italy's slow judicial processes, and more support for the key tourism, automobile and food industries.

“Italy has had a lower growth rate in recent years compared to other European countries. Today is an opportunity for us, with these resources, to catch up,” Conte said.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
Paywall free

POLITICS

‘It’s time to reset Britain’s relations with Europe’

As he begins his first overseas trip, the UK's new Foreign Secretary David Lammy writes for The Local on how Britain plans to rebuild ties with Europe and become a better neighbour.

Published: 7 July 2024 08:54 CEST
'It’s time to reset Britain's relations with Europe'

I am a man of multiple identities. Londoner. English. Patriotic Brit. Proud of my Caribbean heritage. A transatlanticist. And, throughout my political career, absolutely committed to a close partnership with our European neighbours. 

As the new British Foreign Secretary, with our Prime Minister Keir Starmer, this government will reset relations with Europe as a reliable partner, a dependable ally and a good neighbour. 

That is why I am travelling immediately to some of our key European partners. Sitting down with Germany’s Annalena Baerbock, Poland’s Radek Sikorski and Sweden’s Tobias Billström, my message will be simple: let us seize the opportunity for a reset, working even more closely together to tackle shared challenges. 

READ ALSO: New UK foreign minister in Germany for first trip abroad

The most immediate of these challenges, of course, is Ukraine. We will stand by the brave people of Ukraine, as they defend their freedom against Vladimir Putin’s new form of fascism.

British military, economic, political and diplomatic support for Ukraine will remain ironclad. But we are always stronger when we work with others. Germany, Poland and Sweden are all also staunch supporters of Ukraine. European security will be this government’s foreign and defence priority.

Russia’s barbaric invasion has made clear the need for us to do more to strengthen our own defences.

Next week, the Prime Minister, the Defence Secretary and I will all travel to Washington for the NATO Summit. 75 years ago, my political hero and former Labour Foreign Secretary, Ernest Bevin, was pivotal to forming the Alliance. He would have been delighted to see NATO grow larger over the years, with Germany, Poland and now Sweden all joining the most successful defensive alliance in history. 

This Government’s commitment to the Alliance is unshakeable, just as it was in Bevin’s time. I will be discussing this weekend how NATO allies can go further in investing in our tightly connected defence industries and providing Ukraine with its own clear path to joining our alliance. 

Alongside security, we want to do more together to bring prosperity to our continent. None of us can address the urgency of the climate emergency alone – we need coordinated global action. This is particularly important in Europe, whose energy networks are so closely connected – together, we must invest in the industries of the future and deliver sustained economic growth for all.

And finally, we must do more to champion the ties between our people and our culture. Holidays, family ties, school and student exchanges, the arts, and sport (I was of course cheering on England in the Euros…). Thanks to this, our citizens benefit from the rich diversity of our continent. 

We can deliver more cooperation in many areas bilaterally, via NATO and in groupings like the G7, the Joint Expeditionary Force or the European Political Community which will gather at Blenheim Palace on July 18th. 

But if we are to fulfil our ambitions for a reset, we must also improve Britain’s relationship with the European Union.

I will be explaining to my new fellow Foreign Ministers how our new Government’s proposal for an ambitious and broad-ranging UK-EU Security Pact would underpin closer cooperation between us, enshrining a new geopolitical partnership. I also look forward to hearing their ideas for how we can rebuild trust and reset the relationship between the UK and the EU. 

Over centuries, our individual and national stories have come together to tell a wider story of shared progress. Today, we all share a commitment to democracy, human rights and international law. Tragic experiences in our continent’s shared past have helped us to understand how our shared security and prosperity depend on these shared values.

And I believe these values also offer a foundation for closer partnership in the future. My visit this weekend is just the beginning. I look forward to seeing Britain reconnect with our European neighbours in the years ahead.

SHOW COMMENTS