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Europe needs Italy: less debt and more reforms

The speech made in the Montecitorio hall on the occasion of the debate on Europe with the premier Paolo Gentiloni - Italy must be the protagonist of the new phase that is opening up in Europe but it must do so by resuming the path of reforms

Europe needs Italy: less debt and more reforms

The wind is changing in Europe: the worst phase of the crisis, both economic and political, appears to be over. The dangers deriving from international instability, the uncertainties of the new US policy and the aggressiveness of Russia, make Europe once again considered a reassuring place, able, if desired, to better manage geopolitical crises and to overcome the fears that had driven many citizens in many countries to seek reassurance in a nationalistic closure within their borders. The elections in various European countries, and in particular the French ones, have seen a clear retreat of the "sovereigns", while opinion polls also confirm that European citizens are once again looking to the potential of the old united continent with greater hope. From the economic point of view, European growth, excluding Italy, is now higher than that of the United States, while unemployment is rising at a good pace. The consequence is that a new phase of the integration process is about to begin and we have to decide how to participate in it as protagonists.

But Italy appears to be lagging behind both in outlining a credible political strategy and in the opinions of citizens where Euroscepticism, albeit a minority, is still quite widespread. The responsibility lies above all with many political forces, the old ones in an attempt to offload the responsibility for the long and deep crisis the country has gone through, and the new ones because they have no idea what to do and we take refuge in the easiest demagoguery. So both found nothing better than to blame Brussels, German-imposed austerity, or the Euro for the sacrifices we had to make. But continuing to say that "we only want to stay in Europe if it is convenient for us", or repeating slogans such as "Europe yes, but not like this", or insulting the alleged bureaucrats in Brussels because they do not take the citizens' wishes into account, entails high costs as sows uncertainty among savers and economic operators about our country's prospects and spreads distrust in our potential partners about Italy's real ability to participate in the construction of a path to strengthen European integration.

We are convinced pro-Europeans, and indeed pro-Europe activists, but that doesn't mean we don't see the things that are wrong, the mistakes made, and the need to proceed on a path of greater integration in order not to remain in the middle of the ford. But this must not be confused with sterile battles against the fiscal compact or with demagogic and therefore illusory battles against the Fornero law or for a citizen's income. All these statements are seen by our partners as proof that Italy wants to continue spending money it doesn't have, and that with the debt it has, it will be difficult for it to continue to find a loan. Hence the bizarre theories on the exit from the Euro or on the dual monetary circulation which, if implemented, would not only not help those who are really in need, but would bring a breath of poverty to the whole country.

Instead we are beginning to benefit from the sacrifices made and the reforms set. We have decent growth rates, and jobs are on the rise. There are still many difficulties but it is clear that the path taken is the right one. There is no reason to go back. Indeed we must continue with greater commitment. Unfortunately the word "reforms" after the outcome of the referendum of 4 December seems to have gone out of fashion. Few party leaders make it the banner of their political proposal. On the contrary, powerful forces are at work to water down the reforms already made, forces not sufficiently opposed by the protagonists of that season. Yet if we want to be among the main players in the relaunch of European integration which could give a strong boost to the growth of the entire continent, we have to work hard to consolidate the trust of others in us and there is only one way to do this: confirm a credible reformist strategy and outline a path to reduce the debt/GDP ratio. For the next budget law, the bickering has already begun over who should benefit from a possible reduction in the tax burden, businesses or citizens. I don't think there will be much room for distributing resources left and right, beyond the necessary recomposition of revenues and expenditures that should be done to make both more efficient and more suitable for supporting investment and growth . Instead, it would be very important to focus again on streamlining bureaucratic procedures, on speeding up civil justice, on privatizations and liberalisations. Thus, expectations could be changed and investments stimulated, even from abroad.

After all, our crisis was deeper than that of the others and the recovery was slower and more difficult, not because of the mistakes of European politics (which there have been) but because of our sharp decline in productivity that began in the early 2000s and only now does it seem to have stopped. It coincides with the advent of the Berlusconi government and perhaps the Hon Brunetta, a talented economist, can explain the underlying reasons better than us.

If we give clear and convincing signals and if we have the ability to offer political stability similar to that of France and Germany, then we will be able to fully participate in the table at which the renewal of Europe will be decided and we will certainly be able to derive significant and lasting benefits.

Great Britain appears to be in considerable difficulty in carrying out Brexit, a decision probably made more with guts than with brains. We must confirm our friendship with London but we must be tough in defending the rights of many of our fellow citizens who live in Great Britain. On immigration, it seems that progress is finally being made in defining the contributions of all Europeans to the management of this epochal phenomenon. But we are only at the beginning of a journey that must be much more ambitious. Security and defense will have to be at the top of our agenda together with progress in economic integration starting with banking and common unemployment insurance.

In conclusion, I would like to say emphatically that the time has come to stop accusing Europe of faults it does not have. This deranged shouting of ours causes us serious reputational damage which will then have to be paid for by all citizens. Secondly, we must implement an economic policy that aims above all at improving our competitiveness by ceasing to deceive ourselves that the salvation of the country as a whole and that of the unemployed and the poor can come from the public budget and deficit spending. If so, given our debt levels we should be the fastest growing country in the world!

There are no alternatives to Europe. And it is our utmost interest to participate in the front row in this relaunch phase. Both Macron and many German exponents have explicitly said they want Italy at the negotiating table. The French president won against nationalist closures with a pro-European project and arousing the pride of the French by saying "the world needs France". Realistically, we must clearly aim to mobilize the many energies of European citizens who in recent years had weakened due to the howling demagoguery of those who glibly pass from separatism to nationalism or from declaring themselves Franciscans to rejecting any welcoming policy. Europe needs us. It's up to us, as President Ciampi once said, to participate in the match as active players or assist you from the sidelines.

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