21 January 2013

Mario Monti: Italy has led reform in Europe as well as at home

In his response to Wolfgang Münchau's FT article, 'Monti is not the right man to lead Italy', the Italian Prime Minister said Münchau had overlooked the achievements of the Italian government, which had been called to act in an emergency situation.

What this government has done to bring down prices and create more jobs in the services sector is without precedent for such a short period of time and given the lack of a genuine majority in parliament. Italy’s markets are now as open as the EU average, in some cases more, according to the OECD. It estimates the reforms will have lifted Italy’s economic growth potential by at least 4 percentage points of gross domestic product by 2020. But the job is not over and could easily be undone. This is why I have entered the political arena: to garner the support of the vibrant forces of society – and there are many! – that want the country to grow through change, merit and respect of the law.

With public accounts now healthier and among the most sustainable in the world, as noted by the International Monetary Fund, Italy can now allow itself some leeway to sustain activity and employment and to be more equitable.

On the need for all countries, including Germany, to contribute to the rebalancing effort, allow me to remind readers that ever since taking office I have been the first to push the European Council for an agenda of measures to sustain demand. My government also led the fight for the stabilisation of financial markets. Without fiscal consolidation and reforms in a crucial country such as Italy, and without our leadership and determination leading to the June summit, it is doubtful the European Central Bank would have felt comfortable in saying and doing what it did afterwards, which was indeed crucial.

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See also Wolfgang Münchau: Monti is not the right man to lead Italy

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