{"id":5551,"date":"2024-12-10T12:25:56","date_gmt":"2024-12-10T11:25:56","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=5551"},"modified":"2024-12-10T12:25:56","modified_gmt":"2024-12-10T11:25:56","slug":"we-were-pro-europeans-then-came-berlusconi","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2024\/12\/10\/we-were-pro-europeans-then-came-berlusconi\/","title":{"rendered":"We Were Pro-Europeans. Then Came Berlusconi"},"content":{"rendered":"

Before Berlusconi\u2019s \u201centry into politics,\u201d Italians were staunchly pro-European\u2014even the Cavaliere himself was among them. But when a scapegoat was needed for the failure to implement an economic program of tax cuts and increased spending, the euro was chosen. This marked the beginning of a decline in trust toward the EU, leading to the current wave of Euroscepticism and the yearning for a golden age that never existed.<\/span><\/i><\/p>\n

There was a time when we were all pro-Europeans. In the mid-1990s, nearly 80% of Italians believed that being part of the twelve-star club was clearly beneficial for the country. Today, just over half hold that belief, while those advocating for a mandate to go to Strasbourg \u201cto sabotage the Parliament\u201d are amassing votes.<\/span><\/p>\n

Answering the question \u201cWhat happened?\u201d would require a lengthy elaboration on topics ranging from the substantial failure of economic revival policies to the opportunistic transformations they inspired. But in answering \u201cWho was responsible?\u201d one can be direct and say: \u201cBerlusconism.\u201d That is, the narrative spun by the center-right leader, who, in just a few years and for the sake of political expediency, shifted from declaring that the single currency was \u201can advantage\u201d to claiming it was a \u201cdisaster\u201d and the source of all Italy\u2019s economic troubles.<\/span><\/p>\n

Silvio and the Euro<\/b><\/h3>\n

The rhetoric of \u201cnational Silvio\u201d permeated public opinion and created a combative army of anti-euro skeptics, enthusiastically joined by the nationalist right, parts of the Five Star Movement, and, when convenient, factions of the left.<\/span><\/p>\n

Let\u2019s take a step back. The 1990s were a time of devaluations; the lira in those days donned the tattered garments of the \u201clittle lira.\u201d Amid this turbulent monetary period, Parliament ratified the Maastricht Treaty, which established the rules for creating a single currency in Europe. By signing that treaty, Italy committed to reducing its deficit to 3% of GDP and its debt to 60%, or at least showing a downward trend. The path required blood, sweat, and tears. By the time Italy joined the Eurozone, the exchange rate of 1936.27 lire to one euro encapsulated the devaluations of preceding years. The euro officially came into being in January 1999, entering citizens\u2019 wallets three years later.<\/span><\/p>\n

Italian support for European integration gradually waned. By the turn of the century, pro-European sentiment was at 60%\u2014a decline, but still a majority and higher than levels in France, Spain, and Germany. Among the enthusiasts was Silvio Berlusconi, who on June 11, 2001, resumed leadership of the government and retained it for the entire legislature. His dealings with Brussels swung unpredictably between declarations of faith and sharp critiques.<\/span><\/p>\n

How Many Supported Membership in the European Union<\/b><\/h4>\n
\"\"
Note: The figure shows the percentage of respondents who answered positively to the statement, “My country\u2019s membership in the European Union is a good thing.” Source: Eurobarometer.<\/figcaption><\/figure>\n

In 1997, when things were looking grim, Berlusconi assured that \u201ca delay in adopting the euro would (for Italy) be a drama in terms of inflation, exports, and employment.\u201d After becoming prime minister, in late 2001, he reiterated: \u201cThe advantage for the country is enormous because all of Europe, with 300 million people, will have the same currency, and we can operate without exchange rate difficulties.\u201d Then came the day of the changeover, and within two weeks, the president was jubilant: \u201cThe euro works; this is an undeniable truth.\u201d However, Berlusconi\u2019s euphoria for the single currency lasted less than two years.<\/span><\/p>\n

The Turning Point: A Shift in Strategy<\/b><\/h3>\n

After taking the leap, Berlusconi realized that public sentiment was shifting. A widespread perception emerged that prices had risen dramatically, that the exchange rate had effectively been set at 2000 lire per euro, and that indiscriminate rounding had eroded citizens\u2019 purchasing power. Simultaneously, the fiscal constraints imposed by Maastricht made it difficult for the government to honor the \u201cContract with Italians,\u201d which promised sharp tax cuts, higher minimum pensions, and a million new jobs. Without the necessary funds, unwilling to tell the truth, and fearing a loss of face, a scapegoat was needed. The euro and Europe were chosen as targets. This narrative became publicized, making previously unrealistic goals seem within reach. At this point, Berlusconi\u2019s attacks on Europe escalated in tone, becoming increasingly fierce.<\/span><\/p>\n

By December 2003, after perpetuating the metaphor of the \u201cold lire\u201d like water eroding stone, Berlusconi broke the dam: \u201cThe rise in prices is mainly due to the introduction of the euro, which was decided by governments prior to ours.\u201d His critique of the treaty enabling the single currency evolved into an offensive against his rival Romano Prodi, who, in the meantime, had become President of the European Commission.<\/span><\/p>\n

In January 2004, Berlusconi claimed that \u201cthe single currency was adopted without adequate studies and negotiations.\u201d By 2005, the Economy Minister Giulio Tremonti summed up the situation, stating, \u201cThe only negative thing about the Berlusconi government was the euro, which we didn\u2019t want, and which created a disaster for Italian households.\u201d Here it is, let\u2019s roll back the footage: \u201cA disaster for households that we didn\u2019t want.\u201d In other words, the euro doesn\u2019t work, and the center-right government would have done without it if they could.<\/span><\/p>\n

The record shows that it was Tremonti himself who first proposed the 1000 lire per euro exchange rate. A decree from his ministry dated December 28, 2001, can be seen as the father of all roundings, as it raised the minimum Lotto bet and other gambling wagers from 1000 lire to one euro. A symbolic choice, of course, but not an insignificant one, and certainly not as damaging as never making operational the provincial price control commissions planned by previous center-left governments precisely to prevent unjustified price increases.<\/span><\/p>\n

Dr. Berlusconi and Mr. Silvio<\/b><\/h3>\n

By the summer of 2005, we enter the realm of Dr. Berlusconi and Mr. Silvio. The latter advised his allies in July to \u201cassociate and link public discontent over the euro to Prodi\u2019s actions.\u201d The former publicly admitted in September that \u201cthe euro has been absolutely positive, and I recognize Prodi\u2019s merit.\u201d In a publication distributed during the 2006 electoral campaign, the leader of Forza Italia even protested that the exchange rate should have been set at 1500 lire to one euro\u2014making the lira so strong it would have been lethal for Italian exports.<\/span><\/p>\n

From one oddity to the next, Berlusconi lost in 2006 but won again in 2008. The global crisis that erupted that year caused, among other things, a sovereign debt storm that nearly emptied the coffers and jeopardized the Italian Republic. In the autumn of 2011, the embattled prime minister declared that there was \u201can attack on the euro, a currency that has convinced no one, because it belongs to many countries that do not have a unified government, a reference bank, or guarantees.\u201d<\/span><\/p>\n

His government fell, and the technocrat Mario Monti took over. The storm subsided. Berlusconi did not. In July 2012, he suggested asking the European Central Bank to issue more money, threatening to leave the Eurozone if they refused. At the same time, he proposed that the Bank of Italy print more currency, preparing to reintroduce the lira.<\/span><\/p>\n

Legal troubles stopped him in July 2013 with a four-year sentence for tax fraud. After serving his term, he returned with new ideas. In the summer of 2017, he floated a chilling proposal. Drawing inspiration from the AM-lire of dual circulation introduced after the American landing in Sicily in July 1943, Berlusconi suggested \u201cdiscussing the partial recovery of our sovereignty, perhaps by creating a second currency.\u201d Illegal and useless, but evocative. His reasoning was clear: \u201cThe left has done nothing after that disastrous exchange rate of the lira for the euro, which halved Italians\u2019 purchasing power.\u201d<\/span><\/p>\n

The Benefits of the Euro<\/b><\/h3>\n

We could go on endlessly, but the essence of the story is that, by this time, a significant portion of the population had come to see things his way\u2014identifying Europe as the enemy and the euro as the engine of many ills. Nostalgia for the \u201cold lira\u201d had set in. Was it true?<\/span><\/p>\n

The Bank of Italy offers a succinct analysis: \u201cInflation, close to 20% in the early 1980s and still around 5% in the early 1990s, fell to 2% in the two years before the euro\u2019s introduction and stayed at that level on average until just a few years ago,\u201d essentially until COVID. Additionally, \u201cthanks to reduced inflation and exchange rate risks, as well as access to a broader financial market, interest rates on government bonds and loans to households and businesses decreased during the lead-up to the euro.\u201d<\/span><\/p>\n

In his final remarks, the governor Ignazio Visco assured that \u201cItaly\u2019s weak growth over the past twenty years was not due to the European Union or the euro; almost all other member states outperformed us. What are sometimes perceived as costs of euro membership are, in reality, the result of Italy\u2019s delayed reaction to technological change and the opening of global markets.\u201d<\/span><\/p>\n

Was it really the euro that impoverished us? Let\u2019s not joke. \u201cIf we had taken the constraints seriously instead of trying to circumvent them,\u201d said Fabrizio Saccomanni, former director of the Bank of Italy and former Economy Minister, \u201cwe would have achieved the results of everyone else.\u201d One only needs to imagine the cost of servicing the public debt without the single currency, with Italian interest rates naturally diverging from the rest of the Union.<\/span><\/p>\n

When Europe Becomes a Political Alibi<\/b><\/h3>\n

It\u2019s all in vain. According to Eurobarometer, 50% of citizens in the Republic do not trust the European Union. About 37% identify solely as \u201cItalian.\u201d In 2022, 534,950 people voted for Italexit, drawn by the wild idea of escaping the Eurozone. Last June, almost as many supported the provocateur Roberto Vannacci, nicknamed \u201cthe General.\u201d<\/span><\/p>\n

It is to this segment of the public\u2014citizens who see Europe as an enemy and an alibi for remaining unchanged\u2014that the center-right has primarily directed its attention, deriding the European dream and celebrating the myth of a golden age that never existed.<\/span><\/p>\n

Like Berlusconi, almost everyone has sought to appeal to the anti-euro crowd. In November 2012, Beppe Grillo proposed a referendum on staying in the Eurozone\u2014a flash in the pan. In May 2014, at Pontida, Matteo Salvini donned a \u201cBasta euro\u201d T-shirt and declared the urgency of \u201cescaping the euro\u2019s mad cage, outside of which we can produce and work again.\u201d Among Brussels correspondents, Prime Minister Matteo Renzi\u2019s jokes about the tedium and pointlessness of European meetings were legendary. The Prime Minister, Giorgia Meloni, who claims to have never been against the single currency, forgets that in 2012, she presented Fratelli d\u2019Italia as a \u201ceuro-critical movement opposed to this Europe that crucifies us.\u201d Moreover, the party\u2019s 2014 European election platform called for the \u201cagreed dissolution of the eurozone.\u201d<\/span><\/p>\n

Today, as head of the government, the leader of Fratelli d\u2019Italia demonstrates a \u201cDr. Giorgia & Mr. Meloni\u201d approach, much like Berlusconi. On the international stage, she shows near-total adherence to the European project and acts responsibly toward the obligations imposed by participation in the twelve-star club. However, when addressing Italians, the tone shifts to emotional appeals, targeting the core Eurosceptic base within the center-right electorate.<\/span><\/p>\n

An example: In August, controversy erupted over the single allowance for dependent children. A newspaper reported that the government intended to suspend it. Palazzo Chigi denied this, with Giorgia Meloni reiterating her support for the measure and lashing out at \u201csome overzealous European bureaucrat\u201d who had initiated infringement proceedings, requesting the removal of the residency requirement in Italy for non-working allowance recipients. She labeled the proposed changes as \u201ccrazy, unfair to families, and unsustainable for the state\u2019s fiscal balance.\u201d<\/span><\/p>\n

Unnecessary excuses. Defensive posturing. It\u2019s worth clarifying that the \u201cresidency requirement\u201d stipulates that the allowance is not granted unless one has been a resident in Italy for at least two years. However, the premise of the single market is that all European citizens should have the same rights within it. In cases like this, the Commission intervenes with infringement procedures.<\/span><\/p>\n

Italy is in the wrong. But the government, unhappy with the current structure of the allowance, points the finger at the \u201coverzealous European bureaucrat,\u201d who becomes both scapegoat and enemy. If the measure is later modified or abolished, it will take no effort to claim, \u201cIt was Europe,\u201d and half of Italians will find peace in blaming Brussels. Maximum effect with minimal effort, as taught by decades of Euroscepticism. Eurosceptics are easy to please, and it usually works. Berlusconi would have found this deeply satisfying\u2014but not publicly. Not always, at least.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Before Berlusconi\u2019s \u201centry into politics,\u201d Italians were staunchly pro-European\u2014even the Cavaliere himself was among them. But when a scapegoat was needed for the failure to […]<\/p>\n","protected":false},"author":9005,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"coauthors":[206],"class_list":["post-5551","post","type-post","status-publish","format-standard","hentry","category-non-categorizzato"],"acf":[],"yoast_head":"\nWe Were Pro-Europeans. 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