Italy has more weight in Europe: What consequences?

Since Mario Draghi became prime minister of Italy, with a programme of reforms (land registry, justice, tenders, taxation, competition) and necessary public investments, particularly in digitalisation and energy transition, Italy’s weight in Europe has certainly increased, even though Italy’s economic situation remains poor. But Europe understands that these policies are Italy’s last chance. This means that the decisions taken in Europe will be more in line with Italy’s interests: Keeping long-term interest rates low, as Italy’s potential growth is low; Control by the ECB of yield spreads between countries, as Italy’s public debt ratio is high; European fiscal rules allowing the financing of major public investments through debt.