Italy’s new Finance Minister Giovanni Tria has said the government aims to stick with the euro and also cut debts levels. His words should help assuage fears of an Italian spending splurge and exit from the EU currency.
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In his first interview since taking office, the Italian finance and economy minister Giovanni Tria sought to reassure jittery financial markets.
Tria, a little-known professor of economics who has no party affiliation, said the coalition was committed to staying in the European single currency. He also told the Italian newspaper Corriere della Sera that the government would not allow debt levels to go out of control.
Italy is grappling with a €2.3 trillion ($2.7 trillion) debt, which is 132 percent of gross domestic product (GDP) — the second highest ratio in the eurozone after Greece.
"The position of the government is clear and unanimous. There is no question of leaving the euro," Tria said, adding that the government would work actively to prevent the likelihood of such an event.
"The government is determined to prevent in any way the market conditions that would lead to an exit materializing. It's not just that we do not want to leave, we will act in such a way that the conditions do not get anywhere near to a position where they might challenge our presence in the euro."
The original list of ministers from discussions between the far-right League and the anti-establishment Five-Star Movement (M5S) coalition members - was rejected by Italian President Sergio Mattarella. It included anti-euro economist Paolo Savona, who was replaced by Tria, which appeared to satisfy the president.
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After months of negotiations, Italy finally has a government with Giuseppe Conte at the helm. Conte's swearing in ended weeks of turmoil that rocked financial markets, but concerns among Italy's EU partners remain.
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Conte: Novice at the helm
Giuseppe Conte, a little-known law professor with no political experience, was picked by the League and 5-Star Movement (M5S) as their candidate for prime minister. He was forced to temporarily give up his leadership bid after the parties' cabinet selection was initially blocked. However, after the two parties struck a deal with President Sergio Mattarella, Conte was eventually sworn in on June 1.
Image: picture-alliance/dpa/S. Lore
Mattarella: President with the final say
President Sergio Mattarella faced calls for his impeachment after he prevented the populist alliance from taking office. He singled out its choice for finance minister, Paolo Savona, warning that an openly euroskeptic minister in that position went against the parties' joint promise to simply "change Europe for the better." After the parties agreed to replace Savona, Mattarella gave the go-ahead.
Image: Getty Images/AFP/A. Solaro
Di Maio: Anti-austerity advocate
M5S chief Luigi Di Maio secured his party 32 percent of the vote in the March election. With the populist M5S-League coalition in power, Di Maio assumed the role of joint deputy prime minister and took over the economic development portfolio. The M5S leader has come under fire for his anti-immigration rhetoric, including calling rescue missions to save migrants from drowning a "sea-taxi service."
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Salvini: 'The Captain'
Matteo Salvini is the leader of the anti-immigrant, euroskeptic League, which won 17 percent of the vote in the March election. A former MEP, he and his party have no experience in governing. Salvini has taken on the position of interior minister within Conte's Cabinet. Known for his hostile rhetoric toward immigrants and the EU, Salvini once described the euro a "crime against humanity."
Image: picture-alliance/AP Photo/A. Di Meo
Savona: Anti-euro radical
Paola Savona, initially tipped to lead the Finance Ministry, has called the euro a "German cage" and said that Italy needs a plan to leave the single currency. The 81-year-old's stance won him the backing of most Italian lawmakers but that wasn't enough to stop his appointment being vetoed. In his place steps Giovanni Tria, an economics professor without any previous government experience.
Image: Getty Images/AFP/F. Frustaci
Cottarelli: Temporary caretaker
Carlo Cottarelli was set to become Italy's caretaker prime minster after the M5S-League alliance failed to have its controversial cabinet picks approved. The former IMF economist's time in the spotlight was short-lived, however. Political uncertainty in Italy rocked Europe's financial markets and prompted Mattarella to swiftly renegotiate and approve Salvini and Di Maio's governing coalition.
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Berlusconi: Vanquished enabler
Silvio Berlusconi (right) and his Forza Italia entered a four-party electoral alliance including League in the March election that secured the bloc 37 percent. Berlusconi is now upset at his right-wing ally Salvini after the League leader moved to work with M5S. Berlusconi has said he would act as a "reasonable and scrutinizing opposition."
Image: picture-alliance/dpa/ANSA/E. Ferrari
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Tria's words echoed those of Prime Minister Giuseppe Conte, who earlier this week said a departure from the euro was "not up for discussion."
Tria also challenged the notion that Italy might indulge in a public spending spree after promises by the new government that it would roll back pension reform and increase welfare spending.
"Our goal is (to lift) growth and employment. But we do not plan on reviving growth through deficit spending," Tria said.
Tria said the government would reduce public debt and the deficit by stimulating economic growth. Policy would be "based on structural reforms" which, Tria said, should, in turn, create better conditions for investment and employment.
