Italy and Europe

Italy's European vocation has come under question with its EU partners, following the resignation of the foreign minister, Mr…

Italy's European vocation has come under question with its EU partners, following the resignation of the foreign minister, Mr Renato Ruggiero, after a row about the introduction of the euro.

Mr Ruggiero was appointed by the new Italian prime minister, Mr Berlusconi, last summer. As a long-experienced figure, he was expected to ensure continuity in Italy's European policy, despite the formation of a right-wing coalition more critical of the state's traditionally Europhile approach.

Mr Berlusconi insists there has been no change in Italy's EU policy, saying "we are firmly convinced the future of our country lies in a Europe that is stronger, knows how to speak with one voice and follow up economic integration with political integration, with a new constitution". This has been backed by diplomatic assurances to European leaders arguing that the new government must be allowed space to define its own policies on integration and that there can be many ways to pursue a united Europe, including a greater concern for national sovereignty.

The Italians say support for the euro stands despite contemptuously dismissive remarks about the new currency by several ministers, which struck a very discordant note in the week of its introduction. Many commentators have pointed out how important participation in economic and monetary union has been for Italy, by reducing interest rates and the debt/GDP ratio so much that substantial savings have been made in state revenues. A relaxation of disciplines by the more sceptical Berlusconi government (possibly including a more permissive attitude to national budgetary balances) would alarm those in Germany and elsewhere who doubted whether they could be sustained in the longer term. Such a powerful economy has the capacity to disrupt the euro project as a whole if discipline is allowed to slip.

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That is why it is vital that Mr Berlusconi should fully clarify the European policies he intends to follow. Several of his government's decisions and pronouncements, since he came into office, have angered his EU partners. They do not see how it will be possible for him to combine the role of prime minister and foreign minister for anything but a short period. They are worried about potential changes in Italy's approach to European integration in the ambitious convention on the future of Europe launched at Laeken last month and anticipate problems when Italy assumes the EU presidency in July 2003 (just ahead of the Irish one).