(Bloomberg) — Mario Draghi said Italy’s stability won’t be in jeopardy in the future, even without him as prime minister, hinting he might agree to become the country’s president next month if parliament votes to select him for the post.
“I am a man and a grandpa, if you like, at the service of the state,” Draghi told reporters during the traditional year-end press conference on Wednesday in Rome. “My own destiny doesn’t matter.”
The premier said that “conditions for stability are in place” regardless of who leads a future government, as long as it is supported by the same broad majority that exists now, and that early elections before the end of the parliament’s term in 2023 are avoided.
Draghi, a former head of the European Central Bank, is considered a top candidate for the presidency when the legislature votes in a secret ballot next month. The election, which can last for days and is often compared to papal conclaves due to its opaque and complex procedures, often requires several rounds of voting before a consensus is reached. There are no official candidates.
The quirky selection process also means it’s unusual for public figures like Draghi to offer any clear statements about whether or not they want the post, with most generally adopting a wait-and-see approach.
Market Uncertainty
The situation has kept markets nervous as Draghi is considered the man in charge of Italy’s economic makeover and the guarantor of more than 200 billion euros ($226 billion) of European Union recovery fund cash coming the country’s way over the next few years.
Italy’s benchmark 10-year yield rose 3 basis points to 1.04% on Wednesday.
The uncertainty about Draghi’s future is also destabilizing the ruling coalition, which includes Matteo Salvini’s rightist League, the populist Five Star Movement and the center-left Democratic Party.
The 74-year-old Draghi would still have power as president, albeit of a different sort. Though the post is mostly ceremonial, Italian presidents do pick prime ministers and nominate ministers chosen by the premier.
As president, Draghi would also have the ultimate say in decisions on whether to dissolve parliament, making him a stabilizing force in Italy’s often rambunctious political arena. Italian presidents can also reject laws and decrees on constitutional grounds.
Two-Hour Conference
“It is essential, to continue to contrast the pandemic, relaunch growth and implement the recovery plan, and that the legislature continue until its natural end,” which is in 2023, Draghi said responding to a question on the possibility of early elections in the event that he moves to the presidential palace next year.
During his press conference, which lasted almost two hours, Draghi touched on many other topics:
- He said Italy has fulfilled all the commitments it had undertaken to receive its initial share of EU post-pandemic funding.
- There is no need for now to revise down growth forecasts on account of the spread of the omicron variant but the government is ready to step in to support the economy if needed.
- He said big energy producers that are making “fantastic profits” from current high prices must play their part in helping families hit by the crunch.
- He warned that the EU must continue engaging with Russia as it has no tools, economic or otherwise, to deter it while the NATO alliance has shown it has “different strategic priorities, centered on the indo-pacific quadrant.”
- As it evaluates the future of phone carrier Telecom Italia SpA, the government’s priorities are protecting “jobs, infrastructure –meaning the network — and technology.”
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