Why Mario Draghi taking charge of Italy is great news for the EU (and also America)

The news that Mario Draghi has become prime minister of Italy has been saluted by many commentators as great news for the nation. Italy is in desperate need of a strong guide to save the country from one of its worst crises since the second world war, and the 73-year-old former president of the European Central Bank (ECB) is seen as having all the requisite skills.

Yet while most of the attention has focused on what it means for Europe’s fourth-largest economy, it needs to be acknowledged that Draghi’s appointment is also critical for the EU and the US. Here are four reasons why.

1. How to recover

One of Draghi’s new key responsibilities is to redesign the recovery plan that will determine how Italy spends the €209 billion (£180 billion) being provided by the EU in grants and loans over the coming years. A major criticism of Italy’s previous government led by Giuseppe Conte was the dearth of details on how these resources would actually be allocated and their usage monitored. Draghi’s mission will be to bring the plan to the next level while ensuring its proper execution.

His leadership and direction in this role can be an example for other member states as they decide how to spend their share of the EU’s overall €750 billion recovery fund. Italy is the largest recipient of the fund together with Spain, but both have poor records in deploying resources from Brussels. Draghi’s world-renowned competence on these matters – in conjunction with the fine political skills he forged leading the ECB – can therefore be crucial for the entire EU as so much of the recovery fund’s success will depend on Italy.

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Πηγή: theconversation.com