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Obama hails Renzi’s reforms, criticises EU austerity

Euro & Finance

Obama hails Renzi’s reforms, criticises EU austerity

US President Barack Obama. Virigina, 2012. [Barack Obama/Flickr]

Barack Obama praised Matteo Renzi in a newspaper interview yesterday (18 October), endorsing the under-fire Italian Prime Minister’s reform agenda ahead of his state visit to Washington and a referendum that will define his political legacy.

Renzi has said he will resign if he loses the 4 December referendum on constitutional reform, in which two of his predecessors said yesterday they would support the ‘no’ camp – along with what opinion polls say is a majority of Italian voters.

Renzi concedes he made a 'mistake' to personalise Italy's constitutional referendum

Italian Prime Minister Matteo Renzi said on Tuesday (9 August) it had been a mistake to personalise a referendum, due to be held later this year, in which he originally promised to resign if he failed to convince voters to support the need for constitutional change.

“I believe the austerity measures have contributed to slowing growth in Europe,” the US president told la Repubblica daily, adding that Renzi understood the need for reforms to increase productivity and stimulate investments.

Renzi, who was visiting Washington on Tuesday, has set out a 2017 budget that targets a fiscal deficit higher than previously agreed with the European Union.

Obama said European policies aimed at capping budget deficits and lowering debt had led to years of stagnation and high unemployment in several countries.

“That is why I believe the vision and the ambitious reforms Prime Minister Renzi is following are so important,” he said. Renzi “recognises the need to make the investments necessary to sustain growth and jobs and increase opportunities.”

Renzi compares EU to sinking Titanic’s orchestra

Italian Prime Minister Matteo Renzi has stepped up his war of words with Brussels by comparing the European Union to the orchestra that kept on playing as the Titanic sunk to the bottom of the Atlantic.

Renzi’s reforms in areas such as the labour market, the state bureaucracy and education have so far failed to boost Italy’s chronically sluggish growth and his popularity has fallen over the last 18 months.

Renzi on the verge of reforming ‘unreformable’ Italy

Italian Prime Minister Matteo Renzi was poised for a historic victory as the Senate votes today (13 October) to relinquish most of its power in a revolutionary move to end decades of political instability.

The referendum is on his plan to overhaul the constitution by reducing the role of the Senate and cutting the powers of regional governments. A large majority of recent opinion polls put the “no” camp ahead.

Former prime minister Mario Monti, whose austerity measures are widely credited with saving Italy from a debt crisis in 2011 and 2012, said on Tuesday he would vote “no”.

He told Corriere della Sera daily the new role of the Senate was unclear and criticised Renzi for what he said was an irresponsible budget that undermined public finances by offering hand-outs to persuade people to support the referendum.

Another former prime minister, media tycoon Silvio Berlusconi, also declared his support for the “No” camp.

“After a “No” we can approve a real reform, a different reform, all together,” Berlusconi told Canale 5 television, adding this should include reducing the number of deputies in the lower house, and a constitutional limit on taxation.

Brussels will issue a verdict this year on the budget. European Commission officials are concerned about Italy’s inability to bring down a public debt of around 133% of national output, the highest in the eurozone after Greece’s.

Italy presents 2017 budget, seeks compromise with Brussels

Italian Prime Minister Matteo Renzi announced his 2017 budget plan on Saturday (15 October), hoping to persuade the European Commission to approve its minimal reduction in the budget deficit next year while avoiding unpopular belt-tightening.

However, they are also reluctant to hurt Renzi ahead of the referendum which they fear could bring political instability if he loses and favour the rise of the eurosceptic 5-Star Movement.