The oil that shoulder strap does not scare Edward Garrone and it does not change, if anything it strengthens, the strategic choice of Erg which has moved, for years now, the bar of its core business to renewables: the interests of the group that has kept the joint venture with Total on the distribution of fuels are now concentrated here. A link, the one with hydrocarbons, which is in the family DNA even if it is now out of the group's consolidation which continues its vocation in energy, but green one. “2016 will mark a consolidation and development by organic growth of the core activities, with 400 million of additional investments in wind power in Europe by 2018”, says Garrone. If France, Germany and the United Kingdom are the areas on which the growth objectives for the next three years will focus, Italy still remains the headquarters.
And it is precisely about Italy, and Confindustria, and the new publishing scenarios that we talk to him, president of Erg and in the Confindustria team as Delegate for the internationalization of associations, in this all-round interview. Garrone is 54 years old and in the last sixteen he has worked with four presidents in viale dell'Astronomia in Rome (D'Amato, Montezemolo, Marcegaglia and Squinzi). While the wise men of Confindustria are probing the industrialists on four candidates, he has chosen that of Vincenzo Boccia and thinks that in the end the race will be reduced to just two names: "One, for sure, will be Boccia's, on the other - he says – I won't pronounce myself, but we are moving towards a selection before March 31st when the vote of the general council on the new president is expected ". And after the announcement of the Repubblica-Stampa merger, to the whispers that now accredit a possible marriage between RCS and Il Sole24Ore he replies without hesitation: “It is one thing to enhance the value of the asset, another thing is its strategic value. That can't be touched."
President, forward with renewables then? In recent days, Api has decided to change course and concentrate its activity on the downstream, freeing itself from green sources. Eni is betting above all on gas and oil remains very low for now…
“No one had foreseen the collapse of oil at 30 dollars but even in the face of unforeseen turbulence of this magnitude, in the short term, the global trend to invest in renewables in the medium and long term does not change. We are very convinced of this and the COP21 commitments will push government interventions, setting in motion a considerable mass of investments with important repercussions also in collateral businesses such as that of accumulations”.
What are Erg's goals for 2016 and the coming years?
“We are proudly the leader in Italy in wind power and among the top ten in Europe. Our goal is to permanently maintain a leading position among the major European producers and our 2015-18 industrial plan derives from this. There are two directions for development: on the one hand, bringing wind power capacity to around 2000 megawatts at the end of the period, which rises to around 3.000 Mw overall with hydroelectric and thermoelectric power. On the other hand, there is a need to consolidate and integrate our presence: in the last two years we have made important investments. Now is the time to work on efficiency and organization. This hasn't stopped us from announcing a strategic investment in the UK a few days ago in Northern Ireland. The expansion abroad continues”.
400 million investments are planned, all in Europe. Nothing in Italy, why?
“For three reasons. Because, for the new sites, there are no wind conditions that give guarantees of profitability comparable to those of Northern Europe; due to the need to balance the regulatory risk between the various countries in which we operate and because we expect policies to be introduced that facilitate the technological renewal, the so-called repowering, of existing wind farms. In France, Germany and the United Kingdom the legislation is very stable; not so in Romania and Bulgaria where we stopped new investments waiting for a stabilization. In Italy the best wind positions are already occupied by plants which, with repowering, can produce more electricity for the same land occupation. But adequate policies are needed to favor the process”.
Are you thinking about new incentives?
“I am thinking of an administrative simplification on authorizations given that we are not talking about new plants but to be renewed; as for the economic incentives, they can be of a different nature. Certainly we must not repeat some mistakes of the past which have led to an excessive and unbalanced situation, to the benefit of photovoltaics. Finally, few have joined the "spalmaincentivi" and for those who have not, all incentives are blocked. I hope that the government will remove these obstacles ”.
We stay in Italy. Two years have just passed since the birth of the Renzi government. From your point of view as an industrialist and as a Confindustria delegate, how do you evaluate these first two years and what are the priorities for the next two?
“From the point of view of political representation, Renzi has renewed the ruling class of two generations. He involves risks but investing in young people is an act of courage and foresight. From the point of view of government action, I give him great credit for having launched reforms such as schools and the Jobs Act that entrepreneurs have been asking for for years, even if it will take time for them to fully unfold their effects".
The priorities for the reforms still sketched or to be done?
“High on priorities? Simplify: the state system, the public administration, the tax authorities, the functioning of civil and administrative justice. I understand that it is complex and politically sensitive but I expect this to be worked on ”.
Confindustria: on Thursday, in an interview with La Stampa, he came out for Vincenzo Boccia. There are four candidates for the presidency. Do you think a two-way confrontation is possible with a Vacchi-Bonometti ticket on one side, Boccia-Regina on the other?
“I felt like indicating Boccia because I speak as a free thinker and I have no requests for seats in mind. Far from it: after 16 years, a replacement seems absolutely necessary to me. Boccia has shown that he knows how to gather consensus and I don't think he will make tickets with anyone. Rather, I think there will be a selection before March 31st. And someone, I foresee, will withdraw before the vote”.
Whoever takes Squinzi's place, what knots will the future president have to face? Industrial relations are the most important challenge, as you yourself mentioned a moment ago.
"Undoubtedly, the double level of national and integrative company bargaining must be achieved which rewards productivity in line with the path taken by Squinzi and with the trend implicit in the Jobs Act".
As we speak, the Repubblica-Stampa operation excels on the stock exchange and in the newspapers. It opens up new scenarios, also for RCS and for Il Sole24Ore, what do you think?
“The Agnelli family has given a strong and consistent signal with the current condition of FCA: having control of the press is no longer strategic. The operation could give rise to a series of reorganization operations in the Italian printed media and it is realistic that RCS will not stand by and watch. I know that in this picture we are also talking about the Sole24Ore: at the moment, changes in progress on the share capital have been officially excluded. But in the future? I repeat: it is necessary to distinguish between valorisation of the asset and strategic value. Il Sole24Ore is not just a listed company, it is a flag and a historical asset, vital for Confindustria. A loss of control is unthinkable."
The last question is for Sampdoria: is the Garrone family definitively out or is the umbilical cord not completely cut?
“The cord is severed. As a Genoese and a fan, my hope is that the Sampdoria club and the team will do better and better but my family has made a decision and won't go back no matter what the rumors say: in the transfer agreement we only kept a few bank guarantees that progressively will be replaced according to the contract. It was also a painful choice, obviously, thinking of the fans and my father. But it was the best and I don't regret it."
