MNI SOURCES: Italy Coalition Split On Industry, Trade Priority

By Silvia Marchetti

     ROME (MNI) - The partners in Italy's governing coalition are divided over

which top job the country should target in the next European Commission, laying

bare a split over whether to prioritise moves to deliver a boost to smaller

businesses or to protect Europe's industry from foreign competitors, sources

told MNI.

     The populist 5-Stars Movement wants to secure the role of Internal Market

and Industry Commissioner, in order to reshape the EU's internal market in

favour of the small-and-medium enterprises which make up over 80 percent of

Europe's industrial backbone, and 98% of Italy's. In contrast, its partner, and

European parliamentary election rival, the far-right League, would prefer the

Trade Commission, to further its Made In Italy campaign.

     The next EU Industry commissioner should simplify the complex framework of

market rules and adopt new, targeted actions against the illegal practice of

dumping between member states, said a 5-Stars official.

     "We need to boost firms' access to finance and improve the business

environment by cutting down on redundant EU regulations and directives weighing

on all European firms that do not heavily rely on extra-EU exports", the

official said. "In case of trade disputes, we would be less vulnerable to

external demand if we bolster domestic demand."

     Meanwhile, the League is rallying support among other European populists

for measures to protect EU industries from unfair competition, a top aide to

deputy prime minister Matteo Salvini said, adding that Italian firms lost E60

billion a year in exports as a result of counterfeit and Italian-sounding

products produced elsewhere.

     Recent opinion polls put the League, originally the junior coalition

partner, ahead of 5-Stars for May's European elections, boosting its chances of

a greater say in the pursuit of a Commission job.

     The two parties' tussle over whether to prioritise industry or trade comes

as EU-U.S. trade talks are set to begin, after threats by U.S. President Donald

Trump to impose tariffs on European cars. France was the only member of the bloc

to oppose the talks, but League and 5-Star officials said Paris would not be an

impediment to an agreement with Washington.

     "French president Emmanuel Macron does not have the power to block a deal,

he is far too vulnerable today both domestically and at an EU-level to gather

the required consensus against Germany. The truth is, he is isolated", said a

League official.

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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