Here Is Mario Draghi Again, Or How The Money Will Flow In Italy

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In Italy, ministerial instability is chronic: the second government of Giuseppe Conte fell on January 26 after the departure of a small party (Italia Viva of the former head of government Matteo Renzi), with the two large formations of the coalition (the Democratic Party and the Five Stars Movement) not having a majority on their own. And who do we see reappearing, with every chance of becoming President of the Council: Mario Draghi! He was received on February 2nd by the President of the Republic Sergio Mattarella to form a new government.

The former president of the European Central Bank (2011-2019), and of the Bank of Italy (2006-2011), is returning to the center of his country's political life. It is true that the time is serious, the GDP of the peninsula has fallen by 8.9% in 2020, and to revive its economy, Rome is counting on an aid plan of 200 billion euros financed by the European Recovery Plan. But precisely, the political crisis casts doubt on the country's ability to implement it. That's when the "savior" Mario Draghi appears.

The transalpine press is ecstatic to welcome the one who is presented as the savior of the eurozone in 2012, during the European debt crisis (Greece, Ireland, Portugal, Cyprus). A rescue, let's recall, which essentially consisted of pouring debt (but with a longer maturity) on these countries, in order to save the big European banks, but Greece is still fundamentally insolvent, in short. "Super Mario faces a new challenge: to save Italy after having saved Europe," proudly states Il Messaggero, for whom the former head of the ECB is the "last resort" when nothing else has worked to get out of the politician's swamp.

And Draghi's "plan" is debt, again and always. For Corriere della Sera, Mario Draghi will be the man of "whatever it takes", as he was during the debt crisis in Europe in 2012. This formula, taken up in France by Emmanuel Macron, will therefore find its application in Italy. As Il Fatto Quotidiano astutely notes: "Financing the economic rescue with government-guaranteed loans is reassuring for the banking and market circles from which Draghi comes. A credo that he stated as early as last May in an interview with the Financial Times ... in the form of a government program before its time". What a clever guy, Mario.

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James Hanshaw 4 weeks ago Contributor's comment

Good article, I doubt anyone or anything can save Italy. It is a failed state and the next government under Draghi will be the 67th since WW2. I doubt it will last long and I cannot see how the euro can be saved for much longer either. I have written a lengthy article on that talkmarkets.com/.../the-euro-is-in-crash-territory