Home Economy Draghi under high pressure as the spotlight falls on Rome

Draghi under high pressure as the spotlight falls on Rome

Good morning and welcome on board Europe Express! My name is Valentina Pop and I’ll be the one to guide you through the European maze of news, to help you understand what’s important to keep you ahead.

Today we will make a stopover in Rome, where the Prime Minister is Mario Draghi to parliament to present Italy’s 220 billion euro spending plan. Stakes could not have been higher, as the plan was likely make or break general EU coronavirus pandemic recovery. Not presure! In any case, the European Central Bank leadership was previously accustomed to making market-changing decisions. So far, the market has remained calm on Italy’s rapidly growing deficit and debt situation.

We will also consider the French president Emmanuel Macronwho soon entered the campaign path with themes close to the heart of the right person – migration and security. The fact that the policewoman was killed in a suspected Muslim attack on Friday added fuel to that debate.

France and Italy will decrease lock restriction on Monday and the EU’s agriculture ministers will make an adjustment to an online panel. We will get these and other items in the agenda for next week in a minute.

But before we do, a word about Ukraine, where the President is Volodymyr Zelensky has called on the United States, the United Kingdom and Canada to do so larger diplomatic role in ending conflict in the Donbas region. Interview with editor FT Europe Ben hall, president, who recently had to endure one Russian presence deployed and subsequently withdrawn from their own country’s borders, demonstrating the lack of flexibility of the current peace process. “I am now involved in the pre-designed process of my time,” said Zelensky, who was elected in 2019 with a promise to end the war. (Read Full story here).

At Draghi, we believe

Mario Draghi is a man accustomed to writing high expectations Miles Johnson, Reporter FT Rome. When Draghi was the president of the ECB, traders not only heeded his every word – they even tried to draw meaning from the color of the tie he decided to wear during meetings. newspaper.

However, the pressure that Draghi is under meaningful reform for a brief stint in a position arguably greater than any other time he has faced at the ECB.

Draghi will appear before Italian lawmakers on Monday to speak Plan to restore 220 billion euros Many hope it will not only be the catalyst to end decades of economic stagnation, but also mark a turning point in EU solidarity.

The spending plan, which is expected to include 191.5 billion euros in loans and grants from the EU’s next generation pandemic recovery fund, will combine Large spending on infrastructure in an attempt to resolve some of the structural problems of an economy that has not grown on real terms for twenty years (Learn more about the plan here).

Expectations in Italy were sky high, with many hailing Draghi’s plan as the country’s first serious attempt in generations to sever the country’s twisted twin Gordian. ineffective public administration and awful the slow legal system.

Up front, Draghi has options his predecessors lacked. Not so long ago, any attempt by Rome to slightly increase the country’s budget deficit sparked panic in the bond and stock markets in Brussels. However, given Draghi’s unprecedented confidence in investors, this time may be different. It also helps Draghi there Repairs Italy’s reputation among European leaders.

His plan will highlight the country missing or missing for 2021 it was 11.8% of gross domestic product, the highest level since the early 1990s. Debt GDP will increase to nearly 160%, the highest level since the birth of Italy after World War II.

Driven by looser leashes and EU money, the Italian government was on the forecast developed economy 4.5% this year and 4.8% in 2022. This projected growth is in turn expected to have a debt-minimizing effect on the country’s GDP, possibly down to 152, 7% by 2024.

All of this is encouraging and has the potential to help turn an economy lagging behind Germany and France. A developing Italy will eliminate one of the main uncertainties facing the euro zone over the next few decades.

But the success of Draghi’s reforms will not be up to him. He’s almost certain resigns as prime minister in 2023. Italy’s prized national politics will return to harshness, and there is a risk that potentially unpopular potential reforms will be canceled out.

Daily chart: Electricity (wind) of Europe

The Generated Capacity (GW) column chart shows Europe-led Offshore Wind Power

The Biden administration plans to install 30 gigawatts of offshore wind power by 2030, creating 77,000 jobs. But catching up with Europe will be quite a challenge (Find out why). To comply with climate and energy policies in depth, registration to our Energy Sources newsletter.

Hit the campaign trail, Macron style

Emmanuel Macron has not announced that he will run for re-election as French president, but with his enthusiasm Focus on law and order and national security amid the coronavirus pandemic made it clear that he is ready to campaign for the competition a year from now, writes Victor Mallet, Chief of Office FT Paris.

French President Emmanuel Macron

French President Emmanuel Macron is expected to run for a second term next year © AP

With the left held prized and marginalized in national politics, most of the French voters favor center-right or far-right parties and politicians. Islamic crime and terrorism, and immigration, are likely to be featured on the political agenda of 2022 alongside the management of the Covid-19 crisis.

Macron, voted four years ago as a young liberal politician who claims to be “neither left nor left”, begins to tackle favorite right-wing topics, such as The country’s “too lax” immigration policies are back in 2019More about that here).

But with the latest opinion polls confirms that his main rival to the Elysée would be Marine Le Pen of the far-right Rassemblement Country, Macron has doubled security issue, expressed support for the police and promised to hunt down drug dealers and criminals.

Current threat of Islamic terrorism is also an issue, highlighted by female police knife by a Tunisian man during a suspected Muslim attack near Paris on Friday. “We will achieve nothing in the fight against Islamic terrorism,” Macron said.

Last week, the French President spent 40 minutes in an unsigned police car in the southern city of Montpellier to be pointed out the locations where drug dealers buy and sell and hear complaints. of residents of gangs, violent crime and a lack of racial mix in poorer counties. of the city.

“I’m fighting for the right to live in peace,” Macron told conservative newspaper Le Figaro in one interview dedicated to law and order.

He also vowed to complete the lease plan 10,000 additional police officers and dedicate themselves to the end of their mission next year and tackle the “booming” drug trade.

“This trade is the economic foundation for violence in our country,” he said. “Eradicating it has become the mother of wars, because drugs feed some [Islamist] The separatist network, but also daily criminals, even in small towns are now forgiven ”.

Macron’s push for law and order and Islamism, headed by tough-line Interior Minister Gérald Darmanin, aimed at attracting votes from Le Pen and the far-right as well as from potential opponents in the center-right, whose political skin resembles him. The most prominent of these at the moment is Xavier Bertrand, the leader of the Hauts-de-France region in the north, who announced his candidacy and promised to restore law and order and crush Islamists.

The French presidential election is a year away – and the country is in the third wave of a pandemic – but the campaign has been well underway.

Three content to see today

  1. France and Italy loosen restrictions on locking

  2. Conference of the European parliament continues

  3. EU agriculture ministers meet online

. . . and this weekend

  1. The EP votes on the EU-UK trade deal on Tuesday

  2. The UN negotiations on Cyprus unification take place in Geneva from Tuesday to Thursday

  3. EU governments must submit national recovery plans by Friday

Notably, it is possible to quote

  • Chaotic and ridiculed for their diet, the Germans became a political machine lubricated by a gunshot at the prime minister.Find out why).

  • European Commission President Ursula von der Leyen said American tourists who have been fully vaccinated with Covid-19 will be able to visit the EU, raising hopes for the summer tourism season. (THE CURRENT)

  • The US and the EU still emit more CO2, but China is catching up (Mirror).

  • Turkey fight in the United States after President Joe Biden on Saturday recognized the first world war-era Armenian genocide.

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The Europe Express team today: [email protected], [email protected], [email protected], [email protected]. follow us on Twitter: @MilesMJohnson, @VJMallet, @hallbenjamin, @valinapop.



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