President Meloni attends Confindustria General Assembly

Good morning everyone, and thank you.

I wish to thank President Orsini for this invitation and for the many important points he has raised this morning. My greetings go to all authorities present – the Ministers, Vice-President of the Council of Ministers Tajani, members of parliament, local authorities – it would take too long to list them all. I also wish to greet and thank the President of the European Parliament, my friend Roberta Metsola, also for her words just now. As she said, the European Parliament is on your side. I’ll be honest, Roberta, that depends on the majorities that are formed from time to time, but you have certainly been on our side, and are on our side. So, my sincere thanks. 

Despite a very complex agenda in these days (I’m actually about to leave again), it was nevertheless important to me to be here with you, mainly because I want discussions with industry sectors to be a hallmark of this Government, but also because I think it is particularly important at a time like this to stress the key importance of Italy’s industrial fabric for the prosperity and future of this nation.

We have tried to acknowledge this key importance not with words, but with facts. We have put in place many measures, several of which have also resulted from our continuous dialogue with you. We may not have always agreed, which is actually a healthy thing in a democracy, but we have all done our best to work towards a goal that is shared by all sides: quite simply, we all want to do our job well. This is something we can obviously agree on. With regard to the Government’s work, our commitment has focused above all on putting this nation back in its rightful place on the international chessboard, on the global stage, where it was sometimes missing, and pursuing an economic strategy substantially based on three pillars: seriousness, effectiveness and a long-term development vision.

Today, I feel confident in confirming this strategy with you, given that some important results are arriving, albeit in a complex context and despite the many difficulties this nation still faces. Today, Italy presents itself as a credible nation in the face of an economic and financial situation which, as you know, is extraordinarily complex. This is what the markets, investors and savers are all telling us. I think this can be seen in the level of the ‘spread’ [the difference between the yield on an Italian BTP with a ten-year maturity, and the yield on a German Bund with the same maturity], which has more than halved since we came to office, in the record performance of the stock market, in the new appeal of our Italian government securities, in the newfound attractiveness for investments (I’ll briefly come back to this point), and, although I can sometimes, often, be critical on such matters, also in the ratings by rating agencies, with the most recent being Moody’s, which revised its assessment of Italy upwards, something that hadn’t happened for around 25 years.

As I have said many times, we often tend to reason, in the past we have reasoned, as if decline was our destiny, right? As if Italy was too far behind, as if it was impossible to change course. It is possible to change course. What is needed is time and a lot of work; we all need to work together and row in the same direction, which is something that doesn’t always happen in this nation, but when we manage, it really is possible to change course. 

Choices, of course, need to be made so that we can change course. This Government has chosen to be serious in its management of public finances, focusing resources on real priorities and setting itself a strategy, with the courage to say no to absurd measures that squandered public funds and giving central importance to employment. I think the important numbers we are seeing, with record employment figures, show that this was, and is, the right choice. Certainly, we must now work together to stabilise this trend; in other words we must not think we have completed our work, absolutely not. However, we must consider the fact that we are on the right track, especially if we manage to strengthen this strategy.

As I was saying, the other positive element is that Italy is going back to being an attractive market for foreign investment. There are excellent reasons to invest in Italy, as we know. One of those reasons is you: a first-rate industrial and manufacturing system which we can offer to those coming to invest in Italy. The second is that we are, as the President of the European Parliament mentioned and so I cannot but fully agree with her, the homeland of beauty, craftsmanship and creativity. We are sought after, as demonstrated by the worldwide demand for Made in Italy products. Our economy is in any case solid and resilient, as we have shown. This does not depend on politics, as you yourselves have demonstrated and have done so during times of great difficulty, but what politics does add today is stability: stability for the system and a continuity of vision. You know better than I do that it is much more difficult for someone to invest if there is unpredictability regarding what will happen in the coming years. 

We have therefore tried to strengthen Italy’s ability to attract investments and a number of results have been achieved in this regard too. I think it is worth citing some examples.

The Norwegian sovereign fund, the wealthiest in the world, has increased its investments in Italy by 14%. Microsoft has announced a EUR 4.3 billion investment to expand its data centre infrastructure. Silicon Box has chosen Italy as the home for its new major semiconductor assembly plant, with an investment of EUR 3 billion. Google has chosen Sicily to implement a network of undersea fibre optic cables in the Mediterranean. On the occasion of the visit by Sheikh Mohamed bin Zayed, the United Arab Emirates announced the intention to invest EUR 40 billion in Italy, perhaps the most substantial foreign investment ever to be announced in this nation. However, also following on from what President Orsini said, I would also like to say that, in our meetings to decide how to invest these resources, we are focusing on strategic investments, from artificial intelligence to critical raw materials, through to the underwater domain and space research.

The leverage provided by foreign investments has also enabled us to address very delicate industrial issues. In this regard, I am thinking of the commitment by the KKR fund together with the Italian Government and other national institutional investors to acquire TIM’s landline telephone network, or the ITA-Lufthansa agreement, a strategic operation that protects the Italian market, ensuring our production system has better connections and greater competitiveness. We are trying to do the same thing also with the former Ilva steel plant. Despite the objectively very complex situation, which we inherited, the Government will continue to do its part. I am sure that everyone will do the same to guarantee the future of steelmaking, defend employment levels and safeguard the related industries because, allow me to say, all players need to lend a hand, with no room for those that prefer to put obstacles in the way. I believe everyone understands what is at stake.

In any case, the Government will continue to do all it can to create the conditions for more and more companies and investors to choose our nation for their production needs. We also intend to work to strengthen our own Made in Italy brand, boosting the ability of our productive fabric to create unparalleled products. Bringing together these two things, the message we want to send to Europe and the entire world is “Make in Italy”, a message we have already turned into concrete action with a measure regarding major foreign investment programmes in Italy, for which we have provided regulations to simplify procedures and have appointed a commissioner, which means there is a single point of contact, also to ensure rapid time frames and reliable responses.

This is some of the good news.

That said, there is still a lot of work to do, as households and businesses in this nation face some structural problems that we must have the strength, courage, vision and clarity of mind to address once and for all. In my view, the most urgent issue that needs to be addressed, with a serious and I would like to add fearless approach, is the problem of energy costs, which President Orsini extensively talked about in his speech.

It is pointless for me to tell you that the Government is perfectly aware of the impact energy costs have on households and businesses, especially small and medium-sized enterprises, and we also know this because, since this Government took office, we have earmarked approximately EUR 60 billion to try and ease costs, which is the equivalent of two budget laws. It is now clear that continuing to try and patch things up by spending public funds cannot be the solution, which is why we have accompanied resources with several measures, some of which meet the needs highlighted by Confindustria.

One tool that is already available to decouple the price of energy produced from renewable sources from the price of gas regards multi-annual, fixed-price contracts for the purchase of energy produced from renewable sources, where the fee is agreed between the parties and reflects actual production costs for each type of technology. I would like to mention the Energy Release and Gas Release measures that need to be worked on; we are liaising with the European Commission (Roberta, put a good word in for us). We are also working on an analysis of the functioning of the Italian market in order to understand whether possible anomalies in how the single national price is formed may be the cause of unjustified increases, because it would be unacceptable if there were speculation going on at the expense of those who produce and create jobs.

Then, as I have said, long-term measures are needed, such as the choice to resume the path of nuclear power, focusing on the most innovative technologies in order to implement safe and clean mini reactors that can allow us to have greater energy security and significantly lower costs than the ones we have today. This is a brave choice to meet decarbonisation goals, while strengthening Italy’s industrial and economic sovereignty, and thus remain competitive on the market because, as President Orsini rightly pointed out, it is not enough for our products to be quality, they also need to remain competitive.

While the draft law on nuclear power is heading towards parliamentary review, the company Nuclitalia has been established which will focus on studying next-generation nuclear technologies and will be able to count on three excellent major players in our ‘Sistema Italia’: Enel, Leonardo and Ansaldo Energia. However, with regard to energy, President Orsini, I want to tell you that we are always open to suggestions, new ideas and serious proposals. All well-meaning people need to work together on this issue, as it is crucial for our competitiveness. The Government’s doors are always open on this matter, and will remain so.

It is just as crucial for competitiveness, in this case that of Europe’s entire production system (and here I am making the most of President Metsola’s presence), that we have the courage to challenge and correct an ideological approach to the energy transition (as President Orsini has done extensively and as Roberta Metsola also underlined in parts of her speech), which has caused huge damage to the economic and social sustainability of our societies, without actually producing the environmental benefits that had been touted.

President Orsini is right when he says that technology cannot be changed because of regulations. Only someone who had never set foot in an industrial building could have thought this was possible. And yet, this is precisely what Europe has done over the last years, opting for the forced path of a transition dominated by electric solutions, whose supply chains today are mostly controlled by China. I still can’t manage to understand how such a choice can make strategic sense. However, the point is that certain choices were made because ideology was put before realism, and this has had a predictable outcome which many of us here in this hall, also coming from different viewpoints, had predicted and denounced.

Some deliberately chose to pursue a strategy that pushed our products out of the market in order to pursue, at all costs, but against all logic, options that went against European industry. The strange thing is that, today, no one owns up to having made those choices, but they instead have precise names and surnames. The automotive industry is paying the highest price, with serious repercussions for overall industrial production, as we know.

As you know, we have taken a stand on this issue since day one, working very hard, and, as you know, the European Commission has initiated several corrective actions regarding the initial course undertaken. Thanks also, perhaps above all, to Italy’s efforts, there has been a suspension of the fines on car manufacturers, although unfortunately still not for producers of HGVs. As President Orsini rightly said, the goal is to break the absurd spiral that has seen production facilities close or green quotas being bought from major Chinese and American competitors rather than be subject to sanctions. We were also successful in getting the review of the entire regulation on light vehicles to be brought forward to the second half of 2025.

We are aware this is not enough. We must insist, insist on fully affirming the principle of technological neutrality, as this is an essential step towards focusing on alternative energy sources that can contribute to decarbonisation. The method used to calculate emissions needs to be reviewed to take into consideration the pollution produced by a vehicle across its entire life cycle. The automotive industry, and indeed all other energy-intensive industries, must be guaranteed the opportunity to purchase energy at lower and competitive prices.

The good news, however, is that we are less and less alone in this battle. This can be seen in the fact we managed to get the principle of technological neutrality down in writing for the first time in the conclusions of the last European Council meeting, a battle spearheaded by Italy. This can also be seen in the fact that our non-paper on the automotive industry, which was drawn up by Minister Urso and put forward by Italy together with the Czech Republic, is today supported by another 15 European nations.

I am confident much more can change with the new German government. With Chancellor Merz, we have already begun discussing how to revitalize our industrial base. I think that if Italy and Germany manage to collaborate, if Europe’s two main manufacturing economies find a common platform for action, then there will be the conditions to achieve excellent results. As you know, we are focusing our action on making the goals of the Green Deal more sustainable also in other sectors that are strategic for European industry. Together with other governments, we have presented specific non-papers on regulatory simplification, microelectronics, the CBAM review and space. These proposals are being met with growing consensus regarding issues where we expect significant steps forward.

Likewise, we consider it is of fundamental importance, all the more so in a context of instability for international markets, that Europe has the courage to remove the internal tariffs it has imposed on itself over these years, and this was something else President Orsini mentioned.

Just take this figure: according to the International Monetary Fund, the average cost to sell well among European Union Member States corresponds to a tariff of approximately 45%, compared with an estimated 15% for internal trade within the United States. That’s not to mention services, where the average estimated tariff amounts to 110%. This cannot be sustainable. Relaunching the European single market is therefore a priority, as this would clearly enable us to also protect Europe against protectionist choices by other nations.

The European Commission is also aware of this and is working on an action plan in this direction. Our Government is obviously ready to do its part. 

We then cannot pretend not to see how, every year, more than EUR 300 billion in European liquidity ends up in investments outside the EU, which is why we also consider it necessary to swiftly complete the capital markets union. 

It is also now time to say enough is enough, and we all agree on this so I’d say we now just need to act, regarding the over-regulation that has suffocated our development. Also in this regard, it is possible to change course, not only because this moment in time requires it, but also because Europe acting as a bureaucratic super-structure minimises and undermines what it really is: the home of Roman law, the cradle of Christian civilisation, the mother of Greek philosophy, the civilisation that amazed the world with its genius. It is much broader, much more beautiful and runs much deeper than the almost 400 kilometres’ worth of Official Journals of the European Union or the absurd regulations telling us that a bean is not a European bean if it has a diameter of less than a centimetre.

We want Europe to go back to being something else entirely, and so we say yes to a major simplification process which, however, must not only be carried out downstream but must also be implemented upstream of all measures and all new legislation. Also in this regard, as you know, the Commission has begun a process, with the first three Omnibus packages, but the shift in gear on this too needs to be concrete, significant and substantial. This is also necessary for the change in stance, priorities and approach that Europe must embody if it is to meet the challenges we are experiencing, starting of course with the relationship with the United States, which is key (you know what I think about this, but it seems to me that we agree) to keeping the West strong; our destinies are interconnected. When just over a month ago I was hosted by the President of the United States in Washington, I proposed a meeting between the European Union and the United States in Rome. An initial meeting between Vice President JD Vance and President von der Leyen was held on 18 May at Palazzo Chigi. This was the beginning of a dialogue which Italy has continued to facilitate, also over the last few days, and which must be pursued wisely, with common sense and, if I may say so, also with more of a political approach than a bureaucratic one. This applies not only to commercial relations, but to the many areas in which we need Europe and the United States to work in the same direction, in the name of freedom, democracy and the values that unite both sides of the Atlantic. 

Moving on to another issue, President Orsini has proposed to draw up a special industrial plan for Italy together, also and above all to change course on industrial production, whose decline is a trend that concerns us; we also know this is a European trend, but it undoubtedly needs to be addressed. I agree, Mr President, so much so that the Government, as you know, is already working together with the production sector and social partners to outline medium and long-term industrial policy guidelines. We have also launched a public consultation process in order to draw up a new industrial strategy. The feedback will be used to define the ‘Made in Italy White Paper 2030’ which we are aiming to present by this summer. So far, this consultation process has highlighted the need to strengthen traditional Made in Italy supply chains, the so-called ‘4As’, as well as focus on innovative supply chains. 

I very much agree on this: digital, defence industry, pharmaceuticals, space economy, artificial intelligence. So, dear President Orsini, I want to tell you that we’re ready, also starting with the simplifications that, you’re right, I think we need to pursue more quickly; I undertake to take care of this personally, as there are indeed things that can be done quicker. The Government is working hard on this but we can certainly work faster. As you will remember, during our last meeting at Palazzo Chigi, I also proposed a ‘pact’ precisely with the production system and not only, with regard to which we have already identified resources from those available from the NRRP (because, sadly, the issue of resources is always a critical one); we asked ourselves how we could find resources. We have already identified around EUR 15 billion from the total resources of the NRRP, from its upcoming revision; I would like these resources to be restructured in order to support employment and boost productivity. We also intend to take the opportunities that may also arise from the cohesion policy review you mentioned, which the European Commission has approved following the proposal by Vice-President Raffaele Fitto.

I also agree with President Orsini on the fact it is necessary to relaunch investments and provide for simpler procedures with guaranteed time frames, and I am saying this also with reference to Transition Plan 5.0. The first version of this was too restrictive, and we have tried to make it more accessible but are open to further corrective measures if the desired progress isn’t achieved, corrective measures which will also once again be shared with you.

A similar line of reasoning applies to Transition 4.0. Our commitment, and what we are trying to do, is to work with the Commission to understand, as I have already said, whether there is the possibility to insert both these tools, simplifying them, as part of the revision of the NRRP. 

So President Orsini, dear entrepreneurs, I shall come to a close.

There are many other things I perfectly agree on and on which the Government is working. The housing plan, for example, which President Orsini knows is particularly close to my heart and on which I think we can work very well together. However, I first prefer to get things sorted and then announce them, so I am mentioning this very quickly as I like to work in a serious manner.

In conclusion (the last time I spoke for too long, so today I’ve tried to control myself a bit), this Government has just passed the halfway point of its legislative term. If I think of everything we’ve gone through and the changes around us, as well as the very many things we have done, it seems like an eternity has gone by, but then if I think of what we still want to achieve, I reason as if we had only just got started. My message to you is: think big, because Italy is a great nation.

Together, we have shown this to be the case over these difficult years. The ‘Sistema Italia’ has shown its solidity and its ability to react, even when the storm seemed too strong and the wind was so fierce it seemed impossible to stay on course. Beyond our borders, there is a desire for Italy that we are too often the only ones not to see. Beyond our borders, they see that Italy is getting back on track and talk about us, now seeing us as a point of reference on a number of issues. Beyond these borders, there are many people who want to sign international agreements with us, who want to work with us, and this is the reason why I travel a lot, as you know. The Government is present and does not intend to back down. We are not afraid to live up to what we have inherited, what we represent. We are ready to continue along this path with courage and determination, but also with the humility of those who know they don’t have all the answers to every question, because we win or we lose all together, without being afraid to dare, break the mould and uproot habits.

So, yes, this nation still needs to do a lot, but it is a nation that absolutely has what it takes to change course. The first thing we need to do is to have faith, so, think big because I will be doing the same.

Thank you.

[Courtesy translation]