“Napolitano was a great president, it's a shame he's gone. Renzi? I haven't framed him yet: he talks a lot, but let's give him time. While Draghi has known him for almost 30 years: I trust him, even if I don't know if Quantitative easing is the right solution". The judgment comes from the German diplomat Joachim Bitterlich, interviewed at the European Parliament in Strasbourg on the sidelines of an initiative by the Escp Europe business school, of which he is a professor, and by ENA (the Ecole Nationale de l'Administration in which the 'élite transalpina), of which he is a member of the board as well as a former student.
But above all Bitterlich was, at the turn of the 80s and 90s, the years of the fall of the Berlin Wall and the acceleration of the united Europe project, the foreign policy and security adviser to Chancellor Helmut Kohl: few know international politics like him, who is also chairman of the energy company Veolia Environnement in Germany as well as vice-president of the France-China Committee and member of several European think tanks.
The Berlin Wall fell 25 years ago but Europe still seems to have not found its identity.
“Europe has disappointed because we have become selfish and withdrawn into ourselves: there is no longer the momentum of the post-war generation, now young people take Europe for granted and don't look to the future. At an institutional level, everyone thinks about their slice of the cake, the ability to dialogue with partners, with the population and with the economy itself has been lost”.
Why did the process get stuck?
“The years 89-90, with the fall of the Berlin Wall and the dissolution of the USSR, were a breaking point. The truth is that some countries have not yet digested that change. Germany is certainly among these countries, but the most striking case is that of France, which until then had absolute leadership on the continent. Now both France and Germany are still looking for a role: the Germans are asked to take on more responsibility, but then when they do the other countries pull back".
Anti-Europeanism is growing, even in Italy.
“Berlin and Brussels have now become the scapegoats for the difficulties of others. A dangerous tendency to go around talking nonsense is developing, as I recently happened to hear even from Italian economists. Let's also take the case of Greece: Germany is not at all hostile to Athens, indeed thanks to the way the emergency was managed, with the albeit hesitant consent of Angela Merkel, the Greeks have reduced their public debt by 40%.
And now comes Tsipras…
“We will see what he proposes. From my experience I say that the electoral campaign is one thing, the facts are one thing: we will see what the new Greek government really wants to do. For now, it seems clear to me that Germany is willing to help Athens, provided it keeps its commitments and doesn't look for shortcuts".
To get out of the crisis, the ECB's Quantitative Easing is at hand.
“I have known Mario Draghi since 1986 (he was a senior official at the Ministry of the Treasury, ed), he is a friend and one of the rare bankers who really know the banking reality. I trust him, although personally I'm not sure Qe is the best solution. His is a move that I would define as desperate, but it is good to try: we will see if it works ”.
So what is the solution?
“The central problem is the banks, which no longer provide credit to businesses. Draghi intervenes in this sense but I fear that the point is the inability to adapt economic policies to the crisis, to the markets, to global competition. The truth is that for too long we have underestimated the lack of proper regulation of the banking sector. Let me give you an example: Berlin has become the European Silicon Valley, in its region 700 million euros have been invested in startups and innovation, and 100 jobs have been created. But where did that money come from? Not from banks, but from US venture capital. Because the banks, due to the regulatory delay, now have much more trouble to solve".
So are new rules needed?
“New rules are not needed but common sense and initiative: each country must try to find its own way, focusing on the things it does best. In this case there is no need to homogenize the rules, because in the end each country has its own characteristics, weaknesses and strengths. At most, successful models can be exchanged: for example, as regards employment, France itself is studying the Austrian model, while the German model is famous for training”.
So politics is also needed.
“Of course, and that's why Germany is the first economy in the eurozone. Because, even after much hesitation, he has been able to carry out economic reforms. Some of these, particularly on social policies, I suggested to Kohl as early as 1988, but then there was the fall of the Wall, they were complicated years. Then came Schroeder who initially hesitated, but in 2002 he understood and acted. It took 14 years after the fall of the Wall, but the first benefits of the reforms arrived already in 2005-2006”.
Ten years ago, while other countries like Italy are still at a standstill. Is something changing with Renzi?
“Renzi I'm still studying. He talks a lot, like all Italians, but he seems intent on changing Italy. The reform of the Senate is certainly excellent, while I still can't say about the Jobs Act. As for the Pact of the Nazarene, I say that he did very well: he needed Berlusconi to govern. I only reproach Renzi for one thing: when he says that Europol must have operational powers he is absolutely right, but he forgets to mention Helmut Kohl, who at the time was the first to propose a European police force on the American FBI model. We took the issue to a European council in Crete in the late 90s, but were sabotaged by various interior ministers. Except from one."
Who?
"Giorgio Napolitano. In those years he was Minister of the Interior (of the first Prodi government, ed) and he was among the few who understood and appreciated our initiative. I have immense esteem for him, Napolitano has been one of the best interpreters of European politics in recent decades, and his resignation is a great loss for you. Even as President of the Republic he was excellent: he was right to entrust the emergency government to Mario Monti, who never became a politician but was perfect as a coach. Then he was able to accommodate the advent of the new generation represented by Renzi. It will be difficult to replace him and I don't know by whom, since I don't follow much internal Italian events. I knew the previous generation better: for example, I also have a relationship of esteem and friendship with former president Ciampi, who also played a decisive role in the growth of the European Union”.
Let's go back to Europe: do you have faith in Juncker?
"Absolutely yes. Barroso was a weak president, as was Prodi, which was a big disappointment for me. Juncker can be a strong president for three reasons: he has nothing left to lose, he is at the peak of his political career and knows how to relate very well with all countries. And then he has a first-rate staff, far superior to that of his predecessor. I'll give you three names above all: the vice-president, the Dutch Frans Timmermans, the Polish Elzbieta Bienkowska, in charge of the internal market, and the Danish Margrethe Vestager (of the radical left party, ed)”.
Last question: when will economic growth return?
“I believe that with Juncker, Europe will be able to restart. Meanwhile, the +1,5% recorded by Germany in 2014 is a good result, and in 2015 other countries such as Italy should grow again, albeit slowly. The problem is that there is little room for manoeuvre, because we have got stuck. This is why I say that more than QE, each country needs to return to giving its best: maintaining the status quo is convenient for someone, but it's time to make reforms".
