By Silvia Marchetti
ROME (MaceNews) – Italy’s Prime Minister Mario Draghi said on Wednesday that the euro is irreversible and called for a common European budget to tackle challenges ahead.
In a keynote speech at the Senate ahead of a confidence vote, Draghi pledged to efficiently implement pandemic European direct aid and implement a series of structural reforms to prepare Italy for the post-COVID world, warning that a return to normality would not be like “switching back on the light” after a prolonged period of darkness.
In his first public speech since his appointment, Draghi outlined his ruling agenda.
“To support this government means to share (the belief) of the irreversibility in the choice of the euro, the vision of an ever-more integrated European Union that can lead to the (creation) of a common budget able to help countries in times of recession”, said Draghi.
The former European Central Bank chief has already secured a wide majority of 6 leading parties but needs to overcome a vote of confidence in both branches of parliament to fully legitimize his technocrat-political cabinet.
Voting procedures are expected to start at 11 pm CET. It is more than likely that Draghi wins the vote even though a few dissident 5 Stars Movement senators have announced they might vote no or abstain.
“Without Italy there is no Europe. But outside of Europe, there’s less Italy. There can be no sovereignty in solitude”, he added, arguing that in order to be more resilient in areas where they are failing member states must give up parts of their sovereignty to strengthen European sovereignty.
Appealing to all political forces Draghi said “today unity is not an option, unity is a duty led by what I am sure binds us all: the love for Italy”.
The speedy definition of a plan to deploy direct EU aid through the Recovery Fund is the top priority, given it must be forwarded to the European Commission by April. Draghi made it clear that the funds would be centrally and efficiently handled by the Economy minister in cooperation with other competent ministries, such as the one for economic development. Any extra share of loans Italy may request must be in accordance with public finance targets.
The roughly EUR 200 billion in EU aid stands as a unique opportunity for Italy to push forward key reforms, boost competitiveness, research and investments to tackle climate change.
“The response of economic policy to climate change and against the pandemic must be a combination of structural policies that may improve innovation, of financial policies that support resilient firms’ access to capitals and credit, and of accommodative monetary and fiscal policies that spur investments and demand for new sustainable activities that will be created”, said Draghi.
Not all economic sectors can be saved by economic policy in COVID and post-COVID times, he warned, but only those that can adapt to the changing scenario and have a growth potential.
Other top reforms of Draghi’s government include a comprehensive tax reform, a reform of public administration, justice, welfare system, education and health system.
Draghi will be facing another vote of confidence on Thursday at the lower house.