Daily Briefs


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09 February 2022, Wednesday | NIAS Europe Daily Brief #120

Italy: Return of President Mattarella. Short term stability, long term challenges

European Commission cut down funds to Poland; Trilateral meeting in Germany; EU to reduce chip storage;

IN FOCUS

By Ashwin Dhanabalan

Italy: Return of President Mattarella. Short term stability, long term challenges

On 30 January, Italian President Sergio Mattarella, who was due for retirement, withdrew his plans. He won at the end of the eight-round voting, with 759 counts, more than the 505 needed. The turn around indicated that Italy wanted him to stay. 

Italy had to hold elections as Mattarella had initially remarked that he did not want to continue for a second term. But the political and economic circumstances made him call off his retirement, as he merged victorious, saying: “I had other plans, but if needed, I am at your disposition.” 

The political stalemate and the elections

Italy saw eight rounds of voting that eventually led the party heads to urge Mattarella to change his mind. Mattarella had already prepared to move out of his Presidential Quirinale Palace to a new apartment in Rome. However, he had to recall his decision in the wake of a potential power vacuum;Italy saw six days of inconclusive voting, with around 1,009 lawmakers and regional representatives voting only for a political stalemate. 

Incumbent Prime Minister Mario Draghi was the prominent candidate for the post. However, Parliament members equate Draghi’s victory with political instability, and therefore in no round, he was able to secure more than five votes from the 1000+ voters. Besides the above, nationalist League leader Matteo Salvini on the fifth day of voting towards the conservative Senate president, Maria Elisabetta Alberti Casellati, did not work out as Casellati had received only 382 votes in place of 505, losing by a small margin. 

The call for unity 

With Sergio Mattarella at the helm for a second term, he called on all Italians to pull together and support Italy’s recovery from the COVID-19 pandemic. Mattarella, a figure of respect in Italy because of his calm ways of handling crises, also said: “We still need to work together to strengthen Italy, beyond the current difficulties.” Mattarella, as the President, had an influential role to play as he appoints the Prime Minister is often called on to resolve the country’s political crisis and protect the Italian constitution. 

Short term stability, but long term challenges 

Italy will see stability, however, a short-lived one, as it leaves a lot of ambiguity for future elections. But, Italy can continue on its path to pandemic recovery, and Draghi could now focus on governing the coalition and avoid destabilizing the country into early Prime Ministerial elections. The political stalemate had highlighted the deep divisions within Draghi’s ruling coalition as the voting went on for eight rounds before concluding. Lawmakers had also agreed on calling back Mattarella to stabilize the government and secure their jobs and pensions as, if Draghi changed positions, his government would have fallen by default. 

The elections also showed how Italy’s right-wing unity was collapsing. The whole week revealed how the right-wing bloc was split into factions, with a few agreeing to back Mattarella while the rest disagreed. One could also see a rise in leadership battles within the 5Star Movement. As a result, even the current grand alliances will soon see ideological differences while discussing the programs of reforms, pensions, and taxes in the assembly.

Italy can now be back on its path of rapid economic growth with two of its best leaders at Rome’s leadership. This could also be seen as an opportunity to kickstart the economy by unlocking the European recovery funds and bringing in structural reforms before the next race for Prime Ministerial elections began in June 2023. 

Reference 

Hannah Roberts, “Italy chose a president for stability. It may not last long.,” POLITICO, 04 February 2022.

Angelo Amante, “Italy’s president calls for unity as he starts second term,” Reuters, 03 February 2022.

By Gavin Jones, Angelo Amante and Giuseppe Fonte, “Anyone but Draghi” - how an Italian presidential bid fell flat,” Reuters, 03 February 2022.

Holly Ellyatt, “Italy’s 80 year-old president really wanted to retire. He’s just been re-elected amid political stalemate,” CNBC, 31 January 2022. 

Italy: Mattarella re-elected president in eighth round of voting,” Euronews, 30 January 2022.

Jason Horowitz, “Italians Vote for a President. Here’s Why It Matters.,” New York Times, 24 January 2022. 

IN BRIEF

By Joeana Cera Matthews and Padmashree Anandhan 

GERMANY

Investigation launched to look into the speed cross incident

On 09 February, Germany motorways are well-known for having no-speed limit stretches. Recently a Czech millionaire who owned a Bugatti Chiron was found to be crossing the limit of over 417km/hr. The video which was casted in the YouTube, was spotted by the police. An investigation has been launched after the incident was tracked in the German media. According to the police report: “According to the criminal code, a solo drive can still constitute an offence if the driver "moves at an inappropriate speed and in a manner that grossly violates the traffic code and is reckless." (“Czech millionaire investigated over alleged 417km/h motorway drive in Germany,” BBC, 10 February)

THE UNITED KINGDOM

New minister for Brexit opportunities appointed

On 08 February, UK Prime Minister who was in the process of shuffling the cabinet, positioned Jacob Rees Mogg as the new minister for Brexit opportunities. Rees-Morg who was a prominent campaigner in the 2016 EU polling, is viewed as more fitting to the economic role of the cabinet. With the ongoing after-effects of the Party gate scandal, where senior ministers are resigning, a new set of ministers are being placed in the various responsibilities. (“Jacob Rees-Mogg made Brexit opportunities minister as PM reshuffles team,” BBC, 08 February 2022)

REGIONAL

Poland: EU to hold back Warsaw-bound funds over Turow coal mine

On 08 February, the European Commission announced that EUR 15 million would be cut from Poland’s funding. The decision comes in the backdrop of Poland’s unpaid fines of EUR 500,000 a day, imposed by the Commission over the Turow coal mine dispute. Responding to the announcement, Poland’s government spokesperson said that the country would appeal against the decision. Although the Czech Republic and Poland signed a dispute-ending agreement recently, the fines to be paid remain. (“Turow coal mine: EU to withhold Poland funds over dispute,” Deutsche Welle, 08 February 2022; Jennifer Rankin, “EU to withhold funds from Poland over unpaid fine,” The Guardian, 08 February 2022) 

Germany hosts trilateral meeting on resolving issue of Ukraine

On 08 February, a trilateral meeting was hosted by the German Chancellor Olaf Scholz between the French President Emmanuel Macron and Polish President Andrzej Duda in Berlin. The meeting was held to over the building tensions between Russia and Ukraine. The leaders called Russia for a de-escalation at the border and urged for a diplomatic dialogue taking the European security into concern. Scholz said: "Our common goal is to avoid a war in Europe.” Duda said: “We have to find a solution to avoid war, in my opinion what's most important today is unity and solidarity.” Macron said: “We must together find ways and means to engage in a demanding dialogue with Russia.” (“Ukraine crisis: 'Our goal is to avoid a war in Europe,' says Germany's Scholz,” Deutsche Welle, 07 February 2022)

Ukraine: Germany’s Baerbock visits conflict-ridden Donbas region

On 08 February, German Foreign Minister Annalena Baerbock during her trip to Kyiv visited eastern Ukraine which is the conflict front line. Baerbock, who spent around 40 minutes in the region, was briefed by a Ukrainian general about the situation in Donbas. She commented on the "depressing" views in the region and said: "(it would be impossible) to solve this aggression from the Russian side militarily, so I am doing everything I can to make sure that we move forward step by step at the negotiating table." Baerbock is also scheduled to meet with representatives from the Organization for Security and Cooperation in Europe (OSCE). (“Germany′s foreign minister visits front line in Ukraine,” Deutsche Welle, 08 February 2022) 

SCIENCE AND TECHNOLOGY

EU plans to reduce chip shortage with EUR 43 billion 

On 08 February, European Commission President Ursula von der Leyen announced a EUR 43 billion plan to reduce the bloc’s dependency on Asian chip makers. The announcement comes amidst the global supply chain crisis. Von der Leyen stated: “Chips are at the centre of the global technological race. They are, of course, also the bedrock of our modern economies… The pandemic has also painfully exposed the vulnerability of its supply chains. We have seen that whole production lines came to a standstill. While the demand was increasing, we could not deliver as needed because of the lack of chips.” However, the plan is yet to be approved by the EU parliament and member states. (Martin Farrer, “EU hopes €43bn plan will fix chip shortages as supply chain crisis bites,” The Guardian, 09 February 2022)

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