Mario Draghi, the “saviour of the euro” with his applied monetary policy (2010-present) in the Eurozone which he implemented after the global financial crisis of 2008 and went down in history with the phrase “whatever is needed” has otherwise returned to the political scene of the EU.
As the most prominent and popular European personality, Super Mario is the right man to take over the Italian Prime Minister ship after the fall of the government of the popular friend-European Giuseppe Conte.
by Thanos S. Chonthrogiannis
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Photo by the webiste www.varesenews.it
Mario Draghi has a high level and volume of scientific knowledge in economic matters, has served in responsible technocratic positions in Italy and as a Central Banker of Italy as well as in the private financial sector before accepting the position of Governor of the European Central Bank.
Its monetary policies were the glue that united the Eurozone, helping, among other things, to stabilise the heavily indebted economies of the Southern Eurozone.
Italy remains the eurozone’s big economic-political patient and as it is the third largest economy in the Eurozone. Its economy relies heavily on tourism, services, small and medium-sized enterprises where all these sectors of the economy have been hit relentlessly by lockdown measures and economic shutdowns to tackle the spread of the Covid-19 pandemic.
On the other hand, the political environment in Italy, apart from being unstable in terms of its cooperation, is also complex, causing the fall of Giuseppe Conte’s admittedly successful government and despite the high popularity rates of this Prime Minister (see analysis titled “New Scenarios Caused by Political Instability in Italy“).
The official reason for the collapse of the last Conte government was the controversy over Italy’s use of €209bn from the European Recovery Fund.
Unofficially, however, it was the intentions of former Prime Minister Matteo Renzi who wanted to impose his terms on a new co-operation government despite the low percentage of his Party of Italia Viva, resulting in the withdrawing of his two ministers from the Conte government.
On the other side was Matteo Renzi’s alliance with former Prime Minister Silvio Berlusconi who wants to support a right-conservative coalition government to nominate him and vote for him as President of the Italian Republic.
But the fact that Mateo Renzi began to isolate himself politically forced him to buy time to save himself in the polls, which is why he nominated Mario Draghi as his candidate for Prime Minister.
On the other hand, he supports Mario Draghi’s candidacy and Silvio Berlusconi’s Forza Italia along with Matteo Renzi’s party. It goes without saying that the main pillar of the pro-European direction and political stability respectively the Centre-Left Democratic Party supports Mario Draghi’s candidacy.
Mario Draghi’s personality is so great that conservative and far-right parties in Italy such as the Five Star Party and the Northern League find it difficult to say no now to Mario Draghi’s candidacy.
Perhaps because they believe that time is on their side while today Mario Draghi is in the column of his popularity. They believe that it should be they (the parties) who determine at the right time and the political battlefield in which they will “hit” and undermine Mario Draghi and his government.
Now they believe that a direct conflict with Mario Draghi’s candidacy will only have a political cost to them. They expect to use him first and then bring down his government.
Given these political conclusions, we therefore believe that a Mario Draghi government will also take a difficult and uncertain path, as will the Conte government.
The only thing that is certain is that if Mario Draghi succeeds in convincing the Italian people with tangible results in terms of his implemented policies, while at the same time taking Italy out of the political and economic stagnation that characterizes it over the last 20 years, then he will also be the only and steadfast ruler on Italy’s political scene.
The fact that his authority and knowledge enable him to speak directly with anyone who wants to listen to him with respect (Commission, Germany, The Netherlands, ECB, FED, President of the United States etc.) by showing the best policies on a case-by-case basis is also the right person in the right position to best defend the interests of Italy and the financially indebted Southern Eurozone in general.
The Commission will now cease to be concerned given that Italy’s new captain knows how to improve its economy and most importantly how to avoid an Italian accident that would cause a new crisis in the eurozone government bond markets.
