Italy Has New Government: Economy and EU Top Priorities

2013 ITALIAN ELECTIONS DIARY

F R O M T H E E X P E R T S I N A P C O ’ S R O M E O F F I C E

MAY 07, 2013



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Italy Has New Government: Economy and EU Top Priorities

Executive Summary

• Two months after its elections, Italy finally has a new government. Enrico Letta (PD, centre-left) is the new prime minister.

• The new government is a “grand coalition” with the support of the Democratic Party (centre-left), Silvio Berlusconi’s PDL Party (centre-right) and former Prime Minister Mario Monti’s Civic Choice Party (centre).

• The opposition is comprised of the 5 Star Movement, a new online-based movement led by former comedian Beppe Grillo, together with minority parties Sel and the Northern League (former allies of the PD and PDL parties respectively).

• The new government, backed by President Napolitano, has three main objectives:1. To introduce measures to boost the Italian economy and mitigate the current economic crisis2. Deepen European integration, including a review of recent austerity policiesTo support deeper European

integration, including the review of recent austerity policies.3. Approve institutional reforms that will enable a more effective and transparent political process in Italy

Letta’s Government: the New Coalition

PD109

PDL91

M5S54

Misto

Lega Nord

Autonomie

Gal

Scelta Civica

10

10

16

8

21

PD293

PDL97

SEL37

Lega Nord20

Misto

Fratelli d’Italia9

Scelta Civica47

18

M5S109

Senate: the new coalition is supported by 241 of 319 members

Chamber of Deputies: the new coalition is supported by 455 of 630 members

Opposition Majority PD - Democratic Party PDL - People of Freedom Party Civic Choice - Scelta CivicaM5S - Five Star MovementSEL - Left Ecology and Freedom Party Northern League - Lega Nord

GAL - Large Autonomy and Freedom Party Autonomy – AutonomiesOthers – Misto Brothers of Italy - Fratelli d’Italia



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The Prime Minister and his Government

The Prime Minister

Enrico Letta• Democratic Party (centre-left)

• 47 years old

• Graduated in International Law, holds a Ph.D. in European Community Law

• In 1998 he became the youngest minister of the Republic, holding the

office of minister for European Affairs in the centre-left government led by

Massimo D’Alema

• In 2000-2001 he became minister of Industry and Trade, and later also

served as minister of Foreign Trade

• From 2006-2008 he served as secretary of the presidency of the Council

during Romano Prodi’s government

• He served as deputy national secretary of the Democratic Party (centre-left

party) since November 2009 and resigned from this role on 20 April 2013

• He is vice president of the Aspen Institute Italy and is a member of the

Steering Committee of the Bilderberg Group and the European Committee

of the Trilateral Commission (founded in 1973 by David Rockefeller)

• He speaks English and French fluently

LETTA’S GOVERNMENT PRIORITIES

Overall Priorities • In terms of economic policy, the prime minister expressed his desire to move beyond the policies of austerity, while

maintaining the commitment to reduce public debt and undertake measures to support an economic and industrial recovery. These measures include halting a planned VAT increase and reducing labour costs for companies, which also

aim to increase youth employment and reduce the number of workers on temporary contracts.

• The government will place great emphasis on the role of the European Union, both in terms of trying to redefine some

EU economic policies and pushing for a greater political union between EU member states.

• In terms of industrial policies, these are yet to be fully developed, but statements so far seem to point to an emphasis on developing further the digital and green economies, with particular attention paid to small and medium-sized

enterprises.



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Public Finance

• Undertake a public spending review

• Loosen the budgetary constraints imposed on local authorities by the government, in response to the EU-driven internal stability pact

Industry and Business

• Reduce labour costs, with the aim of creating new jobs, especially for youth

• Reform the welfare state along the lines of the European model

• Increase support for small and medium-sized enterprises

Taxes

• Respect EU commitments and fiscal consolidation, without losing sight of necessity to boost economic growth

• Combat tax evasion



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Relations with the European Union and International Relations

• Renegotiate some of the constraints on public finances imposed by the European Union

• Strengthen Italy’s role within the European Union

• Incentivise greater political integration among EU member states, with the aim of increasing the democratic legitimacy of the European institutions

Energy and Environment

• Help develop a stronger green economy and reflect environmental concerns as part of Italian industrial policy

Digital Agenda

• Establish the digital agenda as a key pillar of a long-term plan for research and innovation, financed by “project bonds”

• Improve existing methods for promoting new technologies



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Digital Agenda





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Digital Agenda





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Minister for Economic AffairsFabrizio Saccomanni Technocrat

Saccomanni graduated with a degree in Business Administration from Bocconi University in Milan. He continued his studies at Princeton University in the United States. Since 2006, he has served as general manager of the Bank of Italy, which he joined in 1967. He also worked at the International Monetary Fund, the European Central Bank, the Bank for International Settlements and for the European Union. He aims to find ways to reduce the tax burden, support businesses and the more vulnerable sections of society, while still respecting the EU-imposed budgetary constraints.

Minister for Economic DevelopmentFlavio ZanonatoPD

Zanonato served as mayor of Padova for three terms. A professional politician, his political career began in the Italian Communist Party before he joined the PD. He has always emphasised the need to combat unemployment in youth. He has committed to reduce the budgetary restrictions facing the municipalities as a result of the internal stability pact.

The Ministers(colour code PD – PDL – Technocrat – Monti & others)

Secretary to the Presidency of the CouncilFilippo Patroni Griffi Technocrat

Griffi is a magistrate and was president of the Chamber of the Council of State (the highest administrative Court); for many years he was also head of the Legislative Office of the Ministry of Public Administration. From 2011 to 2013 he was minister of public administration under Monti’s government.

Deputy Prime Minister and Minister for Internal Affairs Angelino Alfano PDL

Alfano is the political secretary of the PDL. A lawyer by profession, from 2008 to 2011 he held the position of minister of Justice. He is considered by many to be Silvio Berlusconi’s chosen heir.



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Minister of JusticeAnnamaria Cancellieri Technocrat

Cancellieri is a prefect and experienced public servant. From 2011 to 2013 she served as minister for Internal Affairs in Monti’s government.

Minister of LabourEnrico GiovanniniTechnocrat

Giovannini is an economist and statistician. Since 2009, he has held the position of chairman of the National Institute of Statistics (Istat). Previously, he served as chief statistician and director of the statistic directorate of the OECD. Since 2002, he has been professor of economic statistics at the University of Rome “Tor Vergata.”

Minister of DefenceMario MauroCivic Choice

Mauro is both a politician and an academic. A graduate in philosophy, Mauro started his political career in Forza Italia (center-right). In 1999, he was elected to the European Parliament for the first time. After his re-election in 2004, he was appointed head of the PDL party’s delegation and vice president of the Parliament. In 2013, he joined the new Civic Choice party of former Prime Minister Mario Monti.

Minister for Foreign AffairsEmma BoninoRadical Party

Bonino is the leader of the Radical Party and former European commissioner for Humanitarian Aid, Consumer Policy and Fishing. In 2006, she became minister for International Trade and European Affairs. She was a member of the executive committee of the International Crisis Group, initiator and promoter of the International Criminal Court and a professor at the American University of Cairo. She led the Italian Government delegation to the UN General Assembly for the “Moratorium on the Death Penalty” initiative. Bonino is renowned for her liberal views and is an avid supporter of the European Union and all issues related to the further integration of EU Member States.



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Minister for EducationMaria Chiara Carrozza PD

Carrozza studied physics in her youth. Recently, she was rector of the S. Anna High School of Pisa. She has held positions responsible for scientific coordination in many European research projects. This is her first parliamentary mandate.

Minister for European AffairsEnzo Moavero MilanesiCivic Choice

Milanesi is a graduate in law and specialized in community law. From 1995 to 2000, he was the chief of staff to Mario Monti. During this time, he also served as the European commissioner for Internal Market and Services and later as the European commissioner for Competition. From 2002 to 2005, he was deputy secretary-general of the European Commission. In 2006, he was appointed judge of first instance to the Court of Justice of the European Union. Since 2011, he has been minister of European Affairs with Prime Minister Monti. He brought forward the European negotiations for budgetary policies.

Minister for EnvironmentAndrea OrlandoPD

Orlando is a professional politician, and this is his third term in Parliament. He was previously a spokesman of the Democratic Party and was responsible for justice matters for his party.

Minister of HealthBeatrice LorenzinPDL

Lorenzin is a parliamentarian and professional politician. She has been part of the centre-right since the beginning of her political activity. She was elected for the first time in 2008 and she is considered a rising star in the PDL. This is her first ministerial post.

Minister for Constitutional AffairsGaetano QuagliarielloPDLA political science graduate, he is a professor of the history of political parties at LUISS University. He has been elected to parliament for the centre-right several times. He will have the task of mediating on the delicate issue of institutional and constitutional reforms, starting with electoral law.

Minister. for Transport and InfrastructuresMaurizio LupiPDL

Lupi was a student of political science earlier in life. He is now a leading member of the influential Catholic Association, “Communion and Liberation.” He has been a professional politician since 1993. He was previously vice president of the Chamber of Deputies.



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Minister for Regional Affairs Graziano Del RioPD

Del Rio studied medicine earlier in life. He was the mayor of Reggio Emilia for two terms and from 2011 he was president of the National Association of Italian Municipalities (ANCI). He will handle federalism and autonomy.

Minister for AgricultureNunzia De GirolamoPDL

Girolamo is a lawyer and expert in civil, labour and banking law. Since 2008, she has been an MP with the PDL. She is considered a rising star in the centre-right and this is her first ministerial post.

Minister for Equal Opportunities and SportJosefa IdemPD

An Olympic champion of canoe, she is a symbol of integrity and fair play. Born a German citizen, she became an Italian citizen in 1992. From 2001 to 2007, she was councillor for sports of the Municipality of Ravenna. She is serving her first term as a senator.

Minister of Culture and TourismMassimo BrayPD

Bray studied the arts and philosophy earlier in life. He was the managing editor of the Italian Enciclopedia Institute, founded by Giovanni Treccani. He is presently the editorial director of the journal of the foundation “Italianieuropei,” led by former Prime Minister Massimo D’Alema. This is his first ministerial position.

Minister for Territorial CohesionCarlo TrigiliaPD

Trigilia is a professor of economic sociology. His primary area of interest is local development linked to the high-tech districts in Europe.

Minister for Public AdministrationGiampiero D’AliaUDC

D’Alia is a lawyer and politician. He is the former undersecretary for Internal Affairs and a member of the Chamber of Deputies. This is his third ministerial term. He is considered very careful and strict on the issue of crimes committed via the Internet, especially with regard to incitement to murder.



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Minister for Parliamentary LiaisonDario FranceschiniPD

A lawyer and politician, Franceschini is a former national secretary and whip of the Democratic Party. Of Catholic extraction, he began his career in the Christian Democrats, keeping progressive positions.

Minister for Cooperation and IntegrationCecile KyengePD

Kyenge studied medicine earlier in life. She was born in the Congo and she became an Italian citizen in the 1990s. This is her first ministerial post, and she is the first minister born in Africa in the history of the Italian republic.

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Contributors to this article from our Italian public affairs team included: • Luca Francescangeli, Associate Consultant • Matteo Martone, Project Assistant

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Italy Has New Government: Economy and EU Top Priorities

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