Speech by the Undersecretary of State for Foreign Affairs

Speech by the Undersecretary of State for Foreign Affairs

Benedetto Della Vedova

at the ICCS Business Awards, 20th M arch 2015

Distinguished guests, Ladies and Gentlemen,

·  I am delighted to participate in this Business Awards ceremony on behalf of the Italian Government. I would like to commend the Italian Chamber of Commerce in Singapore for hosting this extraordinary and timely event.

·  Allow me also to convey my most sincere congratulations to the Board of Directors and to its President Federico Donato.

·  I also would like to congratulate Mr Kwek Leng Beng, Chairman and owner of the Hong Leong Group, Mr Massimo Zanetti, CEO and owner MZB Group, and Mr. Salvatore Raffa, Meridionale Impianti. Let me commend them for their personal and successful contribution to the enhancement of Italian-Singaporean business relations.

·  This event vividly represents our desire to recognize and promote the important contribution made by Italian and Southeast-Asian companies to investment and growth in our countries.

·  On the occasion of the 50th anniversary of diplomatic relations between Italy and Singapore, this year’s Business Awards ceremony highlights the ties that bind our countries together. Cooperation with Singapore in political, economic, financial and scientific matters is a priority for the Italian Government.

·  On the political front, our relations continue to strengthen year by year, as clearly shown by the constant flow of Government visits in both directions. In 2013 Singaporean Secretary for Foreign Affairs Tan visited Italy, and in the same year both our Deputy Minister for Foreign Affairs Bruno Archi and the Deputy Minister of Economic Development Carlo Calenda paid an official visit to Singapore. I am pleased to be here again after my visit last August: I also have attended the bilateral meeting between Prime Ministers Renzi and Lee on the sidelines of the ASEM Summit in Milan. As some of you may know, the Italian Minister of Economy and Finance Pier Carlo Padoan is planning to visit Singapore in the next few weeks.

·  As far as economic relations are concerned, Singapore, amongst the strongest economies in South-East Asia, is a priority partner for Italy in the region, being the first destination of Italian exports since several years and given the interest of its sovereign funds in increasing their investments in Italy.

·  In this framework, I am pleased to see concrete follow-ups to the economic mission to Singapore led by Deputy Minister of Economic Development Carlo Calenda as well as my own visit in August last year. For instance, the ongoing clean-tech mission organized by the Italian Trade Agency and Confindustria, our main business association, in cooperation with the Italian Embassy in Singapore represents an opportunity to highlight the excellence of Italian clean-tech companies.

·  Looking ahead, I am particularly proud to announce that Singapore will be very soon removed from the Italian Ministry of Economy’s so called “black list” on taxation. Such a moment – which is imminent - will further broaden the scope of economic cooperation between our countries.

·  These are the significant highlights of Italy’s commitment to our bilateral economic and trading partnership. I believe that much more can be achieved through our cooperation, also in the broader context of the regional markets and I rely on Italian and Singaporean enterprises, as well as on the Italian Chamber of Commerce in Singapore in order to effectively achieve this goal.

·  The latest economic forecasts by the European Commission show a resumption of growth in all Member States of the Euro area, and of course Italy, during this year, with further improvements expected in 2016.

·  The resumption of economic growth in the Euro area just started, but this recognizes the efforts that Italy and other Member States have made recently in terms of structural reforms and fiscal discipline.

·  The case of Italy is emblematic: we are engaged in an ambitious plan of structural reforms, starting from our labour market reform, that will improve its functioning and thus increase the long-term competitiveness of our economy. We are now devoting our attention to reform the civil justice system, which we know is key to business certainty and investment.

·  The positive evaluation of the European Commission on the Italian National Reform Programme and 2015 budget shows that we are going in the right direction.

·  The path that we are pursuing within the EU for the revival of growth and investment will further contribute to the strengthening of our long-term competitiveness and ability to respond to crises.

·  The Italian Presidency endeavored to change the direction of European policies which were mainly focused on budgetary discipline. Thanks to our efforts, growth and investment have become the new key words of the European debate.

·  On this basis, the 2015 Annual Work Programme presented by the Juncker Commission revolves around a multiannual investment plan to promote competitiveness, growth and employment in Europe, which was adopted by the European Council in December.

·  The first pillar of this plan is the new European Fund for Strategic Investments, on which the EU Council reached a political agreement a just week ago. It now will be operational in the second half of the year, following negotiations with the European Parliament.

·  The Fund will be guaranteed with public money from the EU budget and the European Investment Bank (EIB). It will be able to mobilize €315 billion over the next three years. This system will use available public money to leverage additional capital, that would have never otherwise been mobilized.

·  At the same time, an ambitious roadmap has been proposed to make Europe more attractive and remove red-tape and regulatory bottlenecks. A single EU Regulation can replace 28 sets of laws. This is the best simplification machine.

·  The European Commission also presented detailed new guidance on how it will apply the rules of the Stability and Growth Pact. This will encourage effective implementation of structural reforms and promote investment, by taking better account of the economic cycle in individual Member States.

·  Structural reforms, incentives to create jobs, policies to sustain both public and private investments, however, should be supported through accommodating monetary policies.

·  In this respect, the quantitative easing program by the ECB is a key. The ECB will purchase assets, including sovereign bonds, worth 60 billion each month until September 2016. The program builds on the positive experience of other countries, notably the US, UK and Japan, where similar procedures have contributed to restoring confidence on the markets.

·  This massive purchase program will have multiple effects: it will raise inflation expectations, devalue the exchange rate and lower yields.

·  In the meanwhile, we keep our engagement in exploiting the benefits of being part of a Single Market, with the full implementation of the fundamental freedoms of movement of goods, services, labour, capital and ideas.

·  We are pushing forward initiatives to increase transparency and simplification in the taxation systems to the benefit of business and consumers. At the same time, we are progressing towards a European Capital Markets Union, to diversify sources of financing especially for small and medium enterprises.

·  Investment is about the future. In 2010, European leaders agreed to make the EU by 2020 the most innovative area in the world economy. Under the Italian Presidency we launched a review of the EU2020 Strategy to maintain that promise. The future of the European project is in its innovative capacity and in its human capital.

·  Europe added value is in knowledge-intensive initiatives, in investment in research, innovation and high level education. That is why we are working on initiatives to keep alive the idea of a modern Europe, competitive at world level.

·  Europe is turning a page, it is offering hope both to its future generations and to the rest of the world, as a promising, attractive hub for jobs, growth and investment. Europe is back in business. This is not the moment to look back.

·  Finally, I would like to reiterate the Italian Government’s support to the Italian Chamber of Commerce in Singapore, while expressing my warmest congratulations to you and to the winners of the 2015 Business Awards.

·  Thank you for your attention.