the reforms are at a standstill, let private individuals get involved»- Corriere.it

Even the Europe of industrial associations today is fragile. Faced with American competition with subsidies, the French of Medef and the Germans of Bdi had such different ideas that they asked for Italy’s mediation. Yesterday and today at the Luiss in Rome the meeting between Confindustria, Medef and Bdi is underway which indicates the ways for a European response. «Diplomacy is not my strong point – he says with a touch of self-irony Charles Bonomi, the president of Confindustria -. But we are focusing on our needs: designing a budgetary policy in Europe that boosts investment; reduce the dependence on the import of strategic raw materials; a European fund for any new emergencies; enhance the Recovery Plan. At least for Italy, involving the private sector more».

What do your German colleagues think?

«There has been a very intense confrontation between industrial associations of various European countries in recent weeks. It is a difficult phase for everyone, one of great tension. Paradoxically, we Italians are helped by the fact that we are more used to working in emergencies. But in the end we all agree on the important points, including Bdi».

Also on the idea that the European Stability Pact should leave room for strategic investments?

«I believe that in Germany as in the rest of Europe – not least Italy – there is awareness of three historical errors: having delegated our defense to the United States, technology to the United States and China and energy to Russia. A major overhaul is also underway in Germany. So also the Bdi understands the need to release public investments in the most strategic sectors from the constraints of the stability pact».

Why this breakthrough?

«The Chinese market is very important for everyone and for Germany it is the most important outside Europe, but China is experiencing a sharp slowdown and is refocusing on itself. In the United States, Joe Biden’s White House has implemented the Inflation Reduction Act which obliges companies to buy from American suppliers. Our position is that in Europe we must all work more on public-private investments and it is a point on which we all agree: investments for competitiveness must be detached from the Pact”.

With Medef and Bdi, Confindustria is also proposing a European anti-future crisis fund. What is it about?

«We all agree in asking the Commission to work on a financial instrument for the management of major crises. Even the Bdi. The important thing is that it is dedicated to the competitiveness of our systems».

It would appear that industrialists everywhere in Europe are preparing for a great ice age.

«It must be said that the economic situation is not evolving as negatively as everyone feared. The latest data show that inflation may be slowing, unemployment remains low and employment continues to recover, including in Italy. However, as the United States and China pump hundreds of billions of dollars into their industrial systems, we risk losing competitiveness.

Are you also asking for a European initiative on raw materials?

“What happens if there’s a crisis in Taiwan in a year or two? Europe would be in a panic again. Therefore, a careful analysis of the current and future needs of strategic raw materials is needed, to prevent shortages. And we need a European sovereign wealth fund that acquires stakes in the large global companies of strategic raw materials and minerals».

As European industrial associations, mention the Recovery Fund. But in Italy on the National Recovery and Resilience Plan (Pnrr) the picture is confused. Does not find?

“We got a little lost. In the initial spirit, the Pnrr was supposed to give an additional boost to new investments. Instead, we have aimed above all at financing works already planned, because we lack the ability to design and implement new projects in a few years. The Pnrr was supposed to be born and implemented on the basis of a public-private partnership, but little has been seen of it: it is almost all in the public sphere. Finally, the Pnrr had to resolve the administrative and regulatory bottlenecks that the country has been suffering from for decades. But the reforms are not being carried out, this is the reality”.

Isn’t that a bit harsh judgment?

«The first tender for the largest work, the breakwater of Genoa, was deserted due to the question of costs. In the second case, a company won and the other competitor immediately appealed to the regional administrative court. So, everything stopped. We have so many projects but I wonder if we have enough willing companies to execute them. We have many billions for investments and this was supposed to be used to review and reallocate public spending, but we don’t do it”.

The government points the finger at the alleged delays of those who preceded it.

«There are critical issues, it is undeniable. But we must all work together to do well and quickly. If the idea is to delegate a lot of management to the municipalities, most of them are not technically capable».

Luciano Monti, of Luiss, proposes to outsource the management of the old ordinary European funds to the private sector to allow the administration to concentrate only on the Pnrr. What do you think?

«A public-private management can help in my opinion. It was in the initial spirit and we should go back. I see no other way.”