The Haizum Italian Insider Report is a monthly news service that monitors the most relevant issues in Italy. This document focuses on political, Economic, and Strategic matters, considering the role of Italy within the European Union, the MENA region, and Transatlantic Relations. The report will deliver clever insights by leveraging Haizum’s deep connections in the national institutional ecosystem.
Reading Time: 15 Minutes
Recent developments in Italy reflect an evolving landscape across political, economic, and strategic domains. As Italian politics transitions into a period of heightened activity, characterized by intense party maneuvers and significant appointments, key areas of focus include government reshuffles and economic reforms. The appointment of Raffaele Fitto as European Commissioner is reshaping the political stage, with implications for Italy’s positioning within the European framework. The government is also preparing an economic maneuver that could see substantial changes to welfare policies.
Minister Anna Maria Bernini’s proposed university reform aims to tackle job insecurity among researchers but has faced criticism from labor unions for potentially exacerbating the issue with precarious employment conditions. Meanwhile, the Technical Committee of the Mattei Plan, established to oversee strategic investments in climate and development, reflects Italy’s commitment to enhancing its global role through substantial initiatives.
On the strategic front, Italy is actively engaged in defense and diplomatic efforts. Italian Defense Minister Guido Crosetto’s recent discussions with Czech counterparts underscore the importance of enhanced defense cooperation and the upcoming G7 summit on defense under Italy’s presidency. Additionally, Italy’s diplomatic presence within the European Union has been strengthened with the appointment of Italian Special Representatives, including Luigi Soreca, who will focus on stabilizing Bosnia and Herzegovina.
In the economic sector, Italy’s Cassa Depositi e Prestiti (CDP) and Enel have made notable moves, including a significant financing agreement with Tunisia and the launch of the largest solar grazing project in the U.S., respectively. Eni has also secured approvals for a major offshore gas hub in Indonesia, marking a significant expansion in its global operations.
Amid these developments, strategic companies like TIM are realigning their portfolios, with TIM planning a complete exit from Inwit, and ongoing efforts to divest Vivendi’s stake in TIM facing complexities. Antonella Madeo’s appointment as Head of Communication at Trenitalia has stirred political controversy, reflecting the broader implications of political influence on strategic positions.
As August ends, Italian politics has resumed its customary activity. This phase is marked by intense party maneuvers and public displays of strength as parties vie for visibility and influence. The focus now shifts to several key issues: government appointments, the upcoming economic maneuver, and potential changes to welfare policies.
The appointment of Raffaele Fitto as European Commissioner is at the center of this political stage. This move will trigger a reshuffling of government positions. Meloni’s engagement with European People’s Party leader Manfred Weber underscores the strategic importance of this appointment. However, Weber noted that Meloni’s position is somewhat isolated, as German Chancellor Olaf Scholz and French President Emmanuel Macron have exerted pressure to limit the negotiation scope to certain political groups.
In parallel, the Italian government is preparing its economic maneuver, which has sparked significant controversy. Reports indicate that the administration might dismantle the universal child benefit introduced by Mario Draghi in 2021, a reform that currently supports over six mln families annually with a budget of 20 bln euro. Additionally, Economic Minister Giancarlo Giorgetti has assured that the new economic measures will not involve severe austerity. However, the government faces immediate challenges, including the contentious issue of beach concessions and the proposed reduction of numerous fiscal benefits.
Italian Minister of Universities and Research, Anna Maria Bernini, introduced a legislative proposal aimed at reforming research contracts within universities and public research entities, including the National Research Council (CNR). The reform seeks to address the issue of precarious employment in the academic sector, but it has sparked significant debate and criticism from various stakeholders.
The proposal includes the introduction of new contractual categories, such as postdoc contracts, research assistance scholarships, and the controversial role of adjunct professor. However, critics argue that the reform may exacerbate rather than alleviate job insecurity within academia. Labor unions, particularly the Flc-Cgil, have condemned the reform. They argue that the proposed postdoc contracts and research scholarships lack the protections of formal employment and may lead to further exploitation of young researchers. Additionally, the union criticizes the potential circumvention of competitive selection processes, which could undermine meritocracy in academia. Minister Bernini has expressed openness to dialogue, stating that the legislative process is just beginning.
In March, a decree was approved to establish a new governance structure for the Mattei Plan, including a Steering Committee led by the Prime Minister. This committee comprises the Minister of Foreign Affairs and International Cooperation as Vice President, along with other ministers, the President of the Conference of Regions, the Director of the Italian Agency for Development Cooperation, and the heads of several key institutions such as ICE, Cassa Depositi e Prestiti, and SACE.
Alfredo Mantovano, through a new decree, has outlined the composition and functions of the Technical Committee for the Mattei Plan, as stipulated by the Infrastructure Decree. The committee is composed of seven members, including four representatives from the Prime Minister’s office: Fabrizio Saggio (Chair), Lorenzo Ortona, Simonetta Saporito, and Angelandrea Falcone. Additionally, the committee includes Alessandro Guerri from the Ministry of Environment and Energy, Riccardo Ercoli from the Ministry of Economy and Finance, and Massimo Riccardo from the Ministry of Foreign Affairs and International Cooperation.
The Technical Committee operates within the Prime Minister’s office, specifically within the Mattei Plan’s mission structure. Its functions are outlined in a two-article decree. Article 1 specifies that committee members will not receive any compensation or reimbursements. Article 2 details the committee’s responsibilities, including approving interventions based on their alignment with the plan’s objectives and overseeing strategic orientations and investment priorities for the Italian Climate Fund.
Italian Defense Minister Guido Crosetto and Czech Defense Minister Jana Cernochova met in Prague to discuss various topics including support for Ukraine, international crises, and bilateral defense cooperation between Italy and the Czech Republic. Cernochova praised Italy’s assistance to Ukraine and highlighted the Czech initiative to use frozen Russian assets for Ukraine. The Czech Republic is also considering further cooperation with Italian companies, including Leonardo. The Czech Republic will acquire 24 F-35A fighter jets, with half of them being assembled at the FACO plant in Cameri, Italy, under a previous industrial cooperation agreement. This involves ongoing maintenance and support from Global Support Solution.
Crosetto emphasized the importance of appointing a European Commissioner for Defense, asserting that Europe needs to address defense matters more effectively and rapidly. He announced that under Italy’s presidency, the first G7 summit dedicated to defense will be held, stressing the need for increased investment and rapid decision-making. Crosetto highlighted the urgency of addressing threats from autocracies and hybrid warfare tactics, including anti-Western propaganda and disinformation. He expressed concern about creating divisions between BRICS and NATO, emphasizing that no European nation can tackle global challenges alone.
The role of Special Representatives (RsUE) within the European Union has grown significantly, reflecting their importance in supporting the EU’s foreign policy objectives and promoting stability in various regions. Among the eleven current Special Representatives, three are Italian: former Minister Luigi Di Maio, diplomat Claudia Del Re, and newly appointed Luigi Soreca.
Recently, the EU Council extended Claudia Del Re’s mandate and appointed Luigi Soreca as the new Special Representative for Bosnia and Herzegovina. Soreca will take over from Johann Sattler, whose term ends on August 31, 2024. He will begin his new role on September 1, 2024, for an initial period of two years. Soreca previously served as the EU’s Special Representative for External Migration since spring 2022 and was Head of the EU Delegation to Albania from 2018 to 2022. His mission will focus on advancing the stabilization process in Bosnia and Herzegovina, aiming to support its integration into the EU and ensure its cooperation with neighboring countries.
Moreover, several existing mandates have been extended: Emanuela Claudia Del Re’s term as Special Representative for the Sahel has been extended until November 30, 2024; Miroslav Lajcak’s mandate for the Belgrade-Pristina dialogue and other Western Balkans issues has been extended until January 31, 2025; and Annette Weber’s role as Special Representative for the Horn of Africa has been extended until August 31, 2026.
The Bank of Italy has released an update to its Strategic Plan for 2023-2025 following a mid-cycle scenario review. The strategic framework involves periodic assessments of the activities undertaken, resources utilized, progress achieved, and necessary adjustments. For the 2023-2025 period, the Bank has set five strategic objectives, which are divided into seventeen action plans.
The first objective focuses on maintaining a stable and secure financial system. Key actions include managing risks and ensuring stability, advancing FinTech and retail payment systems, combating financial crime, and enhancing the financial system’s cyber resilience.
The second objective is dedicated to fostering economic and financial innovation both domestically and in Europe. This includes contributing to the potential introduction of a digital euro, supporting the Eurosystem Integrated Reporting Framework (IReF), promoting payment infrastructure innovations, strengthening statistical functions, and enhancing research to support economic policies.
The third objective emphasizes the protection of banking and financial service customers and improving external communication. Efforts here are directed at strengthening consumer protection and financial education, increasing public and specialist knowledge of the Bank’s activities, and improving communication with the public and other stakeholders.
The fourth objective addresses the Bank’s commitment to environmental and energy transition challenges. This involves bolstering sustainable finance initiatives, combating climate change, and reducing the Bank’s environmental footprint through a long-term net-zero emissions target.
The final objective is about creating an inclusive, efficient, and innovative institution. The Bank plans to enhance skills for emerging challenges, promote diversity, expand the use of digital technologies, optimize hybrid work models, streamline organizational structures and processes, and improve risk management.
Giuseppe Del Deo has been appointed as the new Deputy Director of the Department of Information for Security (DIS), succeeding in his previous role as Deputy Director of the Agency for Internal Security and Information (AISI). Vittorio Rizzi, the current Deputy Chief of the State Police, will replace Del Deo as the new Deputy Director of AISI, with both appointments taking effect from September 2, 2024.
Giuseppe Del Deo, aged 50, has had a long-standing career within the AISI, where he previously headed the Economic and Financial Department and was recognized for his expertise in economic intelligence. His new role at DIS will see him collaborate closely with the department’s director, Elisabetta Belloni. Del Deo’s career trajectory has been closely tied to the Fratelli d’Italia, and he was once considered a candidate to lead AISI before Bruno Valensise was selected for that position by the Prime Minister.
Italy and Tunisia took a significant step forward in their bilateral cooperation with the signing of a 50 mln euro financing agreement between Italy’s Cassa Depositi e Prestiti (CDP) and the Central Bank of Tunisia. This agreement is part of the broader Mattei Plan and follows an earlier accord signed on April 17, aimed at supporting Tunisia’s budget in the areas of renewable energy and energy efficiency.
CDP, acting as the manager of the Revolving Fund for Development Cooperation (FRCS), will channel this aid through the Tunisian government via the Central Bank of Tunisia. The funds are intended to bolster Tunisia’s macroeconomic stability and facilitate structural reforms essential for a sustainable economic recovery.
The anticipated impact on Tunisia’s public finances includes a decrease in the commercial deficit and public expenditure on energy subsidies. This reduction will help alleviate fiscal pressure on the state, allowing for the reallocation of public resources to socio-economic development initiatives. These investments are expected to benefit both public and private enterprises, contributing to the overall economic growth of Tunisia.
Enel North America unveiled the largest solar grazing project in the United States, an initiative that will see 6,000 sheep manage vegetation across over 10,100 acres of land in Texas. This project, which involves eight solar photovoltaic (PV) installations, marks a significant milestone in sustainable land management beneath solar panels.
Known as “solar grazing,” this practice is gaining traction among companies aiming to maintain vegetation in a sustainable manner under PV systems. Enel’s project, facilitated by Texas Solar Sheep, will cover a substantial area, reflecting the broader adoption of this approach in the U.S. solar market. According to the American Solar Grazing Association, there are currently 100,000 acres (over 40,000 hectares) in the U.S. utilizing solar grazing.
In addition to the Texas project, Enel is also advancing a 326-megawatt (MW) solar PV plant with an 86-MW storage system in Hopkins County, Texas. This facility, known as Stampede, will supply approximately 522,000 megawatt-hours (MWh) of energy annually to Nestlé North America’s production sites over the next 15 years. This initiative is part of Nestlé‘s strategy to achieve “net zero” emissions by 2025 by transitioning to exclusively renewable electricity across its global operations.
Eni obtained critical approvals from Indonesian authorities to develop new offshore gas fields in the Kutei Basin. This initiative will establish a significant new gas and condensates production hub, marking a substantial increase in Eni’s production capacity and strategic expansion in the Asian market.
The project will integrate the Geng North and Gehem fields into what will be known as the “Northern Hub.” This hub is expected to capitalize on substantial reserves, including 5 trillion cubic feet (tcf) of gas and 400 mln barrels of condensates from Geng North, and 1.6 tcf of gas from Gehem. The development will involve the installation of subsea wells, flowlines, and a newly constructed FPSO unit. Additionally, Indonesian authorities have approved the development of the Gendalo & Gandang fields, which are expected to extend the production life of the Jangkrik floating production unit by at least 15 years. This approval follows a recent 20-year extension of Eni’s licenses for the Ganal and Rapak blocks.
Eni’s collaboration with SKK Migas, Indonesia’s oil and gas regulator, has been instrumental in advancing these projects. The development is anticipated to enhance local content, optimize the Bontang LNG plant’s capacity, and secure a reliable gas supply for domestic needs.
Starting September 2, 2024, Cécile Paillard will take on the role of Chief Transformation Officer at Generali, tasked with accelerating the group’s transformation towards greater digitalization and innovation. This role will focus on enhancing both internal structures and customer experiences. Marco Sesana, Generali’s General Manager, emphasized that innovation is a cornerstone of the company’s “Lifetime Partner 24: Driving Growth” strategy, and Paillard’s leadership is expected to advance their commitment to developing a cutting-edge, agile organization.
Generali’s strategic plan outlines three primary areas of intervention to foster innovative growth. First, the company aims to create greater value for clients by further digitalizing its Partner di Vita advisory model, adopting an omnichannel distribution approach, and expanding its direct business presence in the European market. Second, Generali plans to optimize operational efficiency by refining internal processes and competencies, with an investment of 1.1 bln euro in digital transformation initiatives over the three-year period. By the end of 2023, 75% of this investment had already been allocated, with the goal of completing the full investment by the end of the strategic cycle. The third focus area involves leveraging data and automation to achieve profitable growth, enhance efficiency, and increase productivity.
Antonella Madeo is set to take on the role of Head of Communication at Trenitalia. This appointment, made by Trenitalia’s CEO Luigi Corradi, has stirred controversy within the Italian political landscape. The move is widely attributed to the influence of Edoardo Rixi, the Deputy Minister of Infrastructure and Transport, prominent member of the League party.
The decision has faced significant pushback from members of Fratelli d’Italia, who view this appointment as a continuation of the League’s increasing sway over key positions. Madeo’s political affiliations have further fueled dissent, given her previous connections with the center-left, including her role as spokesperson for Matteo Renzi and Raffaella Paita in the Democratic Party. Despite the internal disagreements, Rixi’s support for Madeo appears to have been decisive. Her extensive experience in communication, coupled with her established relationships in both political and transport sectors, has ultimately secured her new position at Trenitalia.
Telecom Italia (TIM) has finalized an agreement to completely exit its investment in Infrastrutture Wireless Italiane (Inwit), the telecommunications tower company. TIM will sell its remaining 10% stake in Daphne 3, the holding company that controls 29.9% of Inwit, to Impulse I, a consortium led by the private equity firm Ardian, and Daphne 3 itself. The transaction is valued at approximately 250 mln euro. This sale is expected to be completed in the fourth quarter of 2024, pending certain conditions. The deal aligns with TIM’s strategic plan and is set to provide additional cash flow beyond the company’s 2024 financial guidance.
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