MNI: Italian, German Firms Join Forces To Boost EU Project

--Industrial "Integration" Key To Success, New NPL Rules Are Threat To Credit

Revival

By Silvia Marchetti

     ROME (MNI) - Italy's top industrial lobby, Confindustria, and Germany's

business association,the BDI, pledge Friday to boost European Union progress by

joining forces and strengthening integration between European firms. 

     "Our goal is to succeed where the EU's policy-makers fail, because a

stronger economy is the engine of empowered politics. Industrial, and not just

political integration, can favour Europe's development," said Confindustria's

chief Vincenzo Boccia talking at a 2-day Business Forum in the northern Italian

town of Bolzano.

     During the summit, Italian and German entrepreneurs addressed common EU

challenges and ways by which to increase cooperation in pursuing European

development and crucial reforms, including strengthening the common market and

moving on with developing the banking union. 

     In the joint declaration issued at the end of forum, the two lobbies called

for increased investments in strategic sectors, the creation of a centralised EU

budget and Treasury and above all a clearer, more accommodative banking

regulation scheme that may revive credit flows instead of killing them. The

shared concern is that the new stricter rules on Npls could have a negative

impact on the recovery. 

     The two leaders, Confindustria's Boccia and German BDI's chief Dieter

Kempf, also urged the EU to bring Brexit negotiations to a fast and clear

solution and to promote an investment strategy in Africa to help ease migratory

pressures. 

     The joint-document will now be forwarded to the German and Italian

governments and then forwarded to representatives at the EU level. 

     "In Europe we see a political tendency of countries to close upon

themselves, instead of facing globalisation challenges. We must cooperate with

our governments to block the resurgence of nationalisms," warned BDI's Kempf. 

     "Europe needs to change, and in order to safeguard its economy and boost

competitiveness on world markets, it must place at its core enhanced and

integrated industrial policies," explained Boccia, arguing that Europe not only

faces "political challenges," but also several "economic challenges that must be

dealt with" thanks to "an intelligent European industry".

     Confindustria and BDI are confident in the outcome of joining forces to

boost the EU project, being Europe's two largest manufacturing countries. Boccia

stressed how real competition must not be between European firms, but between

Europe and other world markets. 

     Among the main challenges to be addressed are the structural creation of

new jobs, a permanent solution to the immigration crisis, the definition of a

common defence policy and the reduction of social inequalities.

     Lisa Ferrarini, Confindstria's deputy president for European Affairs, said

the two lobbies would be working hard on a common EU platform to contribute

directly to the European reform debate. The goal is to involve France's Medef

industrial association as well. 

     "To stop rising populism, we expect in the next 24 months an acceleration

in the EU project. The common market must grow, especially following Brexit, and

we need to move on with the banking union and cut bureaucracy that hampers

investments, stifling the recovery. Europe right now is moving at a pace of 50

km/hour, when it has the potential of going much faster," said Ferrarini. 

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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