Trichet-Draghi letter

Last updated

The Trichet-Draghi letter, also known as the letter of ECB to Italy, is a confidential correspondence by which, on 5 August 2011, the former and current ECB presidents Jean-Claude Trichet and Mario Draghi (outgoing Governor of the Bank of Italy) addressed to Italian government several requests in order to influence European support to drastic measures of economic rebalancing.

Contents

Background

Despite the approval of economical measures proposed by the Italian government (with Legge 30 luglio 2010, n. 122 and with Legge 15 luglio 2011 n. 111), on 4 August 2011, the spread of decennial btp-bund reached 389 points. [1]

Historical context

On 5 August 2011, during the dramatic crisis of European banks, the former governor of ECB, Jean Claude Trichet, together with Mario Draghi, wrote a "secret" letter to the Italian government, at the time led by Silvio Berlusconi. In the letter, they pushed for a series of economic measures "to be implemented as soon as possible". [2] [3] By complying with these measures, the support of the ECB was implicitly conditioned by the massive purchase of Italian bonds on the secondary market.

This initiative represented an absolute novelty [4] and, for several commentators, strong interference in the internal affairs of a sovereign country. [5] [6]

Requested measures

The letter specified the measures considered urgent in order to avoid the collapse of the country and of Euro. Listed points were: [7]

Publication of the letter

On 5 August 2011, the same day of the letter, with closed markets, Berlusconi and Tremonti summoned a press conference to explain an extraordinary maneuver for Italy. [8] After this conference, the press began to talk about a "secret letter" of ECB sent to the Italian government.

Andrea D'Ambra, president of Generazione attiva association, asked to ECB to see that letter, but on 7 September 2011 ECB answered that "the letter must remain secret": [9]

On 29 September 2011, a scoop of Corriere della Sera reveals this letter to public opinion. [10]

Consequences

The Italian government during August proposed further economical measures that Parliament approved in almost one month with Legge 14 settembre 2011 n. 148 (Conversione in legge, con modificazioni, del decreto-legge 13 agosto 2011, n. 138, recante ulteriori misure urgenti per la stabilizzazione finanziaria).

Nevertheless, in a political confrontation between Berlusconi, Angela Merkel and Nicolas Sarkozy on 22 October 2011, these measures were considered insufficient, in a meeting that was "defined in the following days as tense and extremely hard towards the government of Rome by Valentino Valentini, the personal adviser in international relationship of Italian Prime Minister. Merkel and Sarkozy, which evidently did not tolerate excuses about current difficult situation of Italy, pushed on Prime Minister, so that he announced strong and concrete measures, and to apply in order to demonstrate that his government is serious about debt problem." [11]

Conspiracy theory

The NSA's illegal interceptions of collaborators of the Italian Prime Minister were highlighted by his party to denounce US interference [12] and to seek confirmation of a conspiracy theory stemming from these events. [13] According to this theory, the press conference held the following day, [14] during which the leaders of Germany and France exchanged a wry smile before expressing trust in the responsibility of Italian political, economic, and financial institutions, [15] triggered the President of the Italian Republic, Giorgio Napolitano. [16] Allegedly, on October 26, 2011, Napolitano refused to sign a decree containing additional economic measures that would have strengthened the Italian government's position amidst financial market turmoil and an EU meeting in Nice. [17]

Proponents of this conspiracy theory not only entertain this notion but also entertain other concurrent conspiratorial narratives to rationalize Berlusconi's resignation on November 12, 2011. [18]

Related Research Articles

<span class="mw-page-title-main">Silvio Berlusconi</span> Italian politician and media tycoon (1936–2023)

Silvio Berlusconi was an Italian media tycoon and politician who served as the prime minister of Italy in four governments from 1994 to 1995, 2001 to 2006 and 2008 to 2011. He was a member of the Chamber of Deputies from 1994 to 2013; a member of the Senate of the Republic from 2022 until his death in 2023, and previously from March to November 2013; and a member of the European Parliament (MEP) from 2019 to 2022, and previously from 1999 to 2001. With a net worth of US$6.8 billion as of June 2023, Berlusconi was the third-wealthiest person in Italy at the time of his death.

<span class="mw-page-title-main">Mario Monti</span> Italian economist and politician (born 1943)

Mario Monti is an Italian economist and academic who served as the Prime Minister of Italy from 2011 to 2013, leading a technocratic government in the wake of the Italian debt crisis.

<span class="mw-page-title-main">Enrico Letta</span> Italian politician (born 1966)

Enrico Letta is an Italian politician who served as Prime Minister of Italy from April 2013 to February 2014, leading a grand coalition of centre-left and centre-right parties. He was the leader of the Democratic Party (PD) from March 2021 to March 2023.

<span class="mw-page-title-main">Marco Travaglio</span> Italian journalist and writer (born 1964)

Marco Travaglio is an Italian journalist, writer, and pundit. Since 2015, he has been the editor-in-chief of the independent daily newspaper Il Fatto Quotidiano. Travaglio began his journalistic career in the late 1980s under Indro Montanelli at Il Giornale and La Voce, then in the 2000s worked at La Repubblica and L'Unità, before becoming one of the founders of Il Fatto Quotidiano in 2009. He is also the author of many books and a columnist for several other national newspapers and magazines, his main interests have been judicial reporting and current affairs and politics, dealing with issues ranging from the fight against the Italian Mafia to corruption.

<span class="mw-page-title-main">President of the European Central Bank</span> Head of the European Central Bank

The president of the European Central Bank is the head of the European Central Bank (ECB), the main institution responsible for the management of the euro and monetary policy in the Eurozone of the European Union (EU).

Trials and allegations involving Silvio Berlusconi (1936-2023) have been extensive and include abuse of office, bribery and corruption of police officers, judges and politicians, collusion, defamation, embezzlement, extortion, false accounting, mafia, money laundering, perjury, tax fraud, underage prostitution influence and witness tampering.

<span class="mw-page-title-main">Giorgio Napolitano</span> President of Italy from 2006 to 2015

Giorgio Napolitano was an Italian politician who served as the 11th President of Italy from 2006 to 2015, the first to be re-elected to the office. In office for 8 years and 244 days, he was the longest-serving president, until the record was surpassed by Sergio Mattarella in 2023. He also was the longest-lived president in the history of the Italian Republic, which has been in existence since 1946. Although he was a prominent figure of the First Italian Republic, he did not take part in the Constituent Assembly of Italy that drafted the Italian constitution; he is considered one of the symbols of the Second Italian Republic, which came about after the Tangentopoli scandal of the 1990s. Due to his dominant position in Italian politics, some critics have sometimes referred to him as Re Giorgio.

<span class="mw-page-title-main">Mario Draghi</span> Prime Minister of Italy from 2021 to 2022

Mario Draghi is an Italian economist, academic, banker, and civil servant who served as the prime minister of Italy from February 2021 to October 2022. Prior to his appointment as prime minister, he served as President of the European Central Bank (ECB) between 2011 and 2019. Draghi was also Chair of the Financial Stability Board between 2009 and 2011, and Governor of the Bank of Italy between 2006 and 2011.

<span class="mw-page-title-main">The People of Freedom</span> Italian centre-right political party

The People of Freedom was a centre-right political party in Italy. The PdL launched by Silvio Berlusconi as an electoral list, including Forza Italia and National Alliance, on 27 February for the 2008 Italian general election. The list was later transformed into a party during a party congress on 27–29 March 2009. The party's leading members included Angelino Alfano, Renato Schifani, Renato Brunetta, Roberto Formigoni, Maurizio Sacconi, Maurizio Gasparri, Mariastella Gelmini, Antonio Martino, Giancarlo Galan, Maurizio Lupi, Gaetano Quagliariello, Daniela Santanchè, Sandro Bondi, and Raffaele Fitto.

<span class="mw-page-title-main">Enrico Giovannini</span> Italian economist and statistician

Enrico Giovannini is an Italian economist, statistician and academic, member of the Club of Rome. Since February 2021, he has been serving as Minister of Infrastructure and Sustainable Mobility in the Draghi Government. From April 2013 to February 2014, he served as Minister of Labour and Social Policies in the Letta Government. From 2009 to 2013, he held the office of President of the Italian National Institute of Statistics (Istat).

<span class="mw-page-title-main">Sergio Mattarella</span> President of Italy since 2015

Sergio Mattarella is an Italian politician, jurist, academic, and lawyer who is currently serving as the 12th President of Italy since 2015. He is the longest-serving president in the history of the Italian Republic. Since Giorgio Napolitano's death in 2023, Mattarella has been the only living Italian president.

<span class="mw-page-title-main">2008 Italian general election</span> Snap election in Italy

A snap election was held in Italy on 13–14 April 2008. The election came after President Giorgio Napolitano dissolved the Italian Parliament on 6 February 2008, following the defeat of the government of Prime Minister Romano Prodi in a January 2008 Senate vote of confidence and the unsuccessful tentative appointment of Franco Marini with the aim to change the current electoral law. Under Italian law, elections must be held within 70 days of the dissolution. The voting determined the leader of Italy's 62nd government since the end of World War II. The coalition led by ex-Prime Minister Silvio Berlusconi from The People of Freedom party defeated that of former Mayor of Rome, Walter Veltroni of the Democratic Party.

<span class="mw-page-title-main">Mara Carfagna</span> Italian politician, former showgirl, and model

Maria Rosaria "Mara" Carfagna is an Italian politician and former showgirl and model. After obtaining a degree in law, Carfagna worked for several years on Italian television shows and as a model. She later entered politics and was elected to the Chamber of Deputies for Forza Italia party in 2006. From 2008 to 2011, she served as Minister for Equal Opportunity in Berlusconi IV Cabinet. In 2018 she was elected vice president of the Chamber of Deputies. In 2021, she has become the Minister for the South and territorial cohesion in the cabinet presided by Mario Draghi.

<span class="mw-page-title-main">Political career of Silvio Berlusconi</span>

The political career of Silvio Berlusconi (1994–2011) began in 1994, when Berlusconi entered politics for the first time serving intermittent terms as Prime Minister of Italy from 1994 to 1995, 2001 to 2006 and 2008 to 2011, his career was racked with controversies and trials; amongst these was his failure to honour his promise to sell his personal assets in Mediaset, the largest television broadcaster network in Italy, in order to dispel any perceived conflicts of interest.

Silvio Berlusconi was the Prime Minister of Italy, the head of the country's government, for almost ten years.

<span class="mw-page-title-main">Monti government</span> 61st government of the Italian Republic

The Monti government was the sixty-first government of Italy and was announced on 16 November 2011. This Experts' cabinet was composed of independents, three of whom were women and was formed as an interim government. The government ran the country for eighteen months until the aftermath of the elections in Spring 2013 and then replaced by the Letta government, formed by Enrico Letta on 28 April.

<span class="mw-page-title-main">2013 Italian general election</span> Election

The 2013 Italian general election was held on 24 and 25 February 2013 to determine the 630 members of the Chamber of Deputies and the 315 elective members of the Senate of the Republic for the 17th Italian Parliament. The centre-left alliance Italy Common Good, led by the Democratic Party (PD), obtained a clear majority of seats in the Chamber of Deputies thanks to a majority bonus that effectively trebled the number of seats assigned to the winning force and narrowly defeated the centre-right alliance of former Prime Minister Silvio Berlusconi in the popular vote. Close behind, the new anti-establishment Five Star Movement of comedian Beppe Grillo became the third force, well ahead of the centrist coalition of outgoing Prime Minister Mario Monti. In the Senate, no political group or party won an outright majority, resulting in a hung parliament.

<span class="mw-page-title-main">Forza Italia (2013)</span> Italian political party

Forza Italia is a centre-right political party in Italy, whose ideology includes elements of liberal conservatism, Christian democracy, liberalism and populism. FI is a member of the European People's Party. Silvio Berlusconi was the party's leader and president until his death in 2023. The party has since been led by Antonio Tajani, who had been vice president and coordinatior and now functions as secretary. Other leading members include Elisabetta Casellati.

The centre-left coalition is a political alliance of political parties in Italy active under several forms and names since 1995, when The Olive Tree was formed under the leadership of Romano Prodi. The centre-left coalition has ruled the country for more than fifteen years between 1996 and 2022; to do so, it had mostly to rely on a big tent that went from the more radical left-wing, which had more weight between 1996 and 2008, to the political centre, which had more weight during the 2010s, and its main parties were also part of grand coalitions and national unity governments.

Beast is an Italian anonymous contemporary street artist from Milan.

References

  1. ↑ (in Italian) La Repubblica - Da Berlusconi a Monti, la drammatica estate 2011 tra spread e rischi di bancarotta (From Berlusconi to Monti, the dramatic summer 2011 between spread and risks of bankrupt)
  2. ↑ Jean Pisani-Ferry (2014). The Euro Crisis and Its Aftermath. Oxford University Press. p. 183. ISBN   978-0-19-999333-8.
  3. ↑ (in Italian) The Letter of ECB to Italy that inflamed political debate
  4. ↑ (in Italian) Il Sole 24 Ore - The letter from Frankfurt that changed Italy
  5. ↑ Elido Fazi (7 February 2012). La terza guerra mondiale? (Three World War?) (in Italian). Fazi Editore. ISBN   9788864115818.
  6. ↑ Giulio Tremonti. Uscita di sicurezza (Emergency exit) (in Italian). Rizzoli.
  7. ↑ (in Italian) Corriere della Sera - «C'è l'esigenza di misure significative per accrescere il potenziale di crescita» («There is the necessity of significant measures in order to increase the growth potential»)
  8. ↑ (in Italian) La Repubblica - Crisi, Berlusconi anticipa la manovra (Crisis, Berlusconi anticipates the maneuver)
  9. ↑ (in Italian) Contropiano - Bce: "La lettera all’Italia deve rimanere segreta" (ECB: "The letter to Italy must remain secret")
  10. ↑ (in Italian) Corriere della Sera - Il documento segreto della Bce (The secret document of ECB)
  11. ↑ (in Italian) Il Fatto Quotidiano - Wikileaks, la NSA spiava anche il governo Berlusconi (Wikileaks, NSA even spied on Berlusconi government)
  12. ↑ (in Italian) Agenparl - Intercettazioni, Brunetta-Romani incontrano Minniti (Interceptions, Brunetta-Romani meet Minniti) [usurped]
  13. ↑ (in Italian) Il Giornale - La verità su Re Giorgio e il 2011 (The truth about "King George" and 2011)
  14. ↑ (in Italian) Giornalettismo - La Merkel e Sarkozy ridono di Berlusconi (Merkel and Sarkozy laugh at Berlusconi)
  15. ↑ (in Italian) La Repubblica - Berlusconi spiato da NSA (Berlusconi spied by NSA)
  16. ↑ (in Italian) Il Giornale - L'ultimo tassello che dimostra il complotto di Napolitano & C. (The last piece that demonstrates the conspiracy of Napolitano & Co.)
  17. ↑ (in Italian) Panorama - 2011: congiura a palazzo contro Berlusconi (2011: conspiracy against Berlusconi)
  18. ↑ (in Italian) Libero - La fine di Silvio e l'arrivo di Monti (The end of Silvio and the arrivalof Monti)
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.