The resignation of the government of Giuseppe Conte has drawn Italy into a political crisis, which is added to the economic crisis and the health crisis. A difficult situation that the president, Sergio Mattarella, hopes to resolve by appealing to “Super Mario”. The Milan Stock Exchange reacted very well to the idea that the savior of the euro is working to save the country.
Super Mario arrives, Milan climbs 2%
Nicknamed Super Mario, Mario Draghi is well known in the financial world: former governor of the Bank of Italy, he was then head of the ECB after the 2008 economic crisis.. Since 2012, he has been considered the “savior of the euro” by some, having taken steps that allowed the single currency to survive the impact of the subprime crisis.
Such a technician at the head of Italy can therefore only be praised by the Milan Stock Exchange. While the main European indices ended the day of February 3, 2021 without much variation, Milan posted a rebound of 2.09%.
A future government without political color?
The good news of Mario Draghi at the head of the next Italian government remains uncertain, however: as practice dictates, after the meeting with Sergio Mattarella, Mario Draghi accepted the mandate “subject to”. This reserve is that of succeeding in unifying the political parties in order to have the possibility of governing, a complex task in Italy which, if it fails, will end in new elections. Some parties, especially the far right, have already announced that they will not participate in this new government, preferring that the Italians go to the polls. But in the midst of a pandemic, the organization of these elections could become a puzzle.
However, Italy needs to quickly organize its economic response against the crisis: According to Eurostat, the country’s GDP fell by 8.9% in 2020, one of the worst results in the euro area.
Is Draghi “right” or “left”?
Mario Draghi, however, remains a new name in the Italian political scene: his high-ranking missions have always been in the field of the economy and he has never officially been invested with a political mission, even that of Minister of the Economy. Catapulted to the head of the country, he could make interesting strategic choices for his team.
But it will be especially the Italians who will discover a new face of the former president of the European Central Bank (ECB). After the announcement of his convocation to Palazzo Chigi, one of the most common searches on Google in Italy was that aimed at answering this question: ” Is Mario Draghi on the left or on the right? “
Anecdote: Mario Draghi is the real inventor of “whatever the cost”
Repeated by Emmanuel Macron since the start of the health crisis, the “whatever it costs” is far from being an invention of the French president. Others, before him, used it… but it is Mario Draghi who is at the origin.
During a historic speech on July 26, 2012 in London, in the midst of the sovereign debt crisis, he declared that he was going to save the euro and Europe ” whatever it takes “… or, precisely, “whatever it costs”.