Italy and the European Union; another possible exit?

Analysis by Staff Writer, Annabelle Ghanem

June 7th, 2020

“The mere fact that we work together, that we are embedded in the union, makes us stronger, safer, and more effective,” said Mark Rutte, Prime Minister of the Netherlands. However, those sentiments were not shared by the Italians as the coronavirus inflicted its shattering wave on their nation, during the early stages of what is now known as a global pandemic. Information and country experiments to refer to, in regards to Covid-19 responses, were very limited when the virus reached the Italian borders. Thus, the nation was forced into complete lockdown, with a devastating death toll of above 30,000 people. The burden inflicted on Italy was overwhelming to say the least, leaving the nation feeling anything but “stronger, safer, and more effective” with the European Union nowhere to be found. Could another Brexit be on the horizon?

It all started in the end of January, when two Chinese tourists wandered the beautiful streets of Italy, unconsciously drafting arguably the European Union’s greatest test since the second World War. Cases began rising and rising at such an exponential rate, leaving the nation squabbling for supplies, information, and most importantly support. Unfortunately, that support was delivered faster from China and Russia, than its allies in Europe. Instead, the members of the union acted individually, enforcing their own measures and restrictions, without any form of cooperation. Nations such as France and Germany halted exports of medical supplies for preservation purposes, despite Italy’s desperate need for those very provisions.

The struggle continued to deepen and spread across the streets of Italy, forcing the nation to become more vocal in regards to the solution it needs. Struggling to escape a possible post-pandemic recession within a country already in debt, Italian Prime Minister Giuseppe Conte calls for the use of the union’s 500-billion-euro bailout fund, to not only help his nation with this crisis, but other members struggling to keep their economy afloat as well.

PM Conte also presented the idea of using “coronabonds”, which in simple terms, would allow the EU nations to share the debt accumulated by virus-combating expenditures. This would tremendously aid nations, such as Italy, with their economic struggles. However, it would involve the cooperation of economically stronger and more capable nations, who would have to put the benefit of the union before their personal advantage. This idea was endorsed by members such as Spain and France, while simultaneously rejected by members such as Germany and the Netherlands. 

Infuriated by the lack of cooperation within the union, Prime Minister Conte threatened to not sign off on the EU’s Covid-19 deal, unless it includes plausible solutions for Italy’s economy, stressing on the implementation of coronabonds. He has expressed in a series of public statements that he believes that the solutions provided are not what his nation needs, and demands a greater contribution to overcome this pandemic. 

With tension rising not only amongst the European parliament, but within the nation of Italy itself, we began witnessing the development of enmity between the Italians and their neighbors. “It was undoubtedly an unpleasant feeling to hear of the resistance from some northern European governments to share the burden of the crisis,” Italian university Professor Marco Del Rocca of NYU Florence tells The Phoenix Daily, when asked how he feels about the lack of support received by the EU in the beginning stages of the pandemic. It’s as if the European Union has set the perfect stage for the Italian populists, people who oppose their nation’s participation in the EU, to monopolize and strengthen their agenda. Disapproval towards Italy’s membership has never been stronger, despite the nation’s undeniable loyalty towards the union in previous years. Multiple studies have gathered that the percentage of Italian’s favoring Italy’s exit from the union has almost doubled since 2018, therefore leading us to a quite pivotal question; what would happen if Italy took the United Kingdom’s route straight out of the European Union?

The answer is chaos. Italy’s economy is already in a state of disaster, with a large dept hanging the nation by a thread amidst the coronavirus, arguably preventing them from sustaining themselves without extensive foreign aid. The advantage Britain had in its respective confrontation with the EU is the difference in currency. However, Italy relies on the Euro, the same currency utilized by many of the EU member states. The backlash of Italy leaving the Eurozone would not only place the country in an even larger amount of debt, but would reduce the income values of Italian’s salaries and savings by a significant amount, crippling the nation on the macro and micro levels.

“Absolutely!” responded Luca Venditti from the city of Monza, Italy, when asked if Italy should remain part of the EU. “An Italbrexit would be a disaster for our economy, it would sign the death of a sick country,” he added. 

However, the consequences following Italy’s exit would also rest on the shoulders of the European Union, for despite its large dept, Italy remains the EU’s third largest economy. This makes a possible exit further problematic for EU members and their common currency, as well as the world’s finance sector. Last but not least, it is important to remember that the European Union is in fact still recovering from Brexit, therefore adding on the burden of an Italexit, is not a consequence the union can afford. 

Recognizing those possible repercussions, and taking responsibility for the mistakes made by the union, President of the EU Commission, Ursula Von der Leyen, extended a heartfelt apology to the Italians. “Yes, it is true that no one was really ready for this,” she admitted, “It is also true that too many were not there on time when Italy needed a helping hand at the very beginning. For that, it is right that Europe as a whole offers a heartfelt apology”. Italian Foreign Minister Luigi Di Maio appreciated President Von der Leyen’s apology, but his nation remains firm on its demands for the coronabonds that have yet to be enforced.

The European Union came up short in regards to standing in solidarity with Italy, however it is not too late to change the block’s course. As President Von der Leyen said, “sorry only counts for something if it changes behavior,” and now it is up to each individual member to learn from their mistakes, and unite in the face of a common enemy, for the sake of their survival, and for the sake of the European Union.