Italy and Germany in the future Europe

The conference opened with a reflection on the Italian and the German economies, their differences and similarities. The priority for Germany is to strengthen domestic demand, given their good performance on international markets and a restructured private sector. Italy needs to become more competitive and to guarantee greater discipline in its fiscal policy. The two countries face some of the same challenges, especially as regards reforming their respective pension systems and health sectors. Resources must be shifted from old welfare state expenditures to areas such as education, research and development. On the European front, participants considered institutional issues as well as the upcoming enlargement, especially in light of candidate countries Bulgaria and Romania, with an eye to solid political and economic governance. Discussions touched on the domestic market, on the so-called “national champions” (a country’s largest successful company in any given sector), and on the increasingly urgent energy question – all against a background of great competition among old and new global players. Participants also considered the complex situation in the Middle East and prospects for success of the mission in Lebanon, within a scenario filled with unresolved difficulties: from the state of Palestinian affairs to relations between Israel and its neighbors, from the unwieldy process of “democratization” to the specific goal of keeping Iran from developing nuclear arms. Europe’s role in a world of rapidly changes equilibriums was naturally at the center of attention.