Traduzione en 20100819 - Corriere Della Sera

8/4/2019 Traduzione en 20100819 - Corriere Della Sera

1/7

Newspaper: Corriere della Sera

Date: 19 August 2010

Page: 13

What the CEO of Intesa Sanpaolo has to say

Passera: The ruling class

is shirking its responsibilities

The resources and energy to revive employment exist.

Unfortunately were spending the summer steering clear of the subject

by ALDO CAZZULLOCorrado Passera, CEO of Intesa Sanpaolo, talks about the present and the future of the

country. With thorny issues such as the recession, the lack of respect for the

institutions, the shirking of responsibilities by the ruling class that generate fear and

uncertainty, and with politics failing to map out a shared project for the future.

And yet there are lots of elements on which trust can be re-built: We are the third

economy in Europe, and among the sectors of greatest growth worldwide there are

some in which we excel: industrial automation, household technologies1, fashion and

agri-business. The entrepreneurial Italy is not standing still, says Passera, its the

system at country-level thats not on the move.

on page 13

The interview

What the CEO of Intesa Sanpaolo has to say

Politics has to rebuild a climate of trust. The ruling class is shirking its

responsibilities

Italy has enormous potential; whats lacking is a project

for the country

Passera: the crucial issues to be addressed continue to be infrastructures, education,

the legal system and bureaucracy

Weve weathered the financial crisis better than others. Now we need a

shared effort to foster growth

Enterprise is not at a standstill, it wants answers to the problems. In big

1 Furniture and home-related products


2/7

companies yes to female quotas, in schools merit should be rewarded much

more

In certain areas, localism is counterproductive. Sectors such as transport

and energy call for a national, or even European, vision

Unless rights are protected and rules obeyed, corruption spreads,

organised crime is strengthened, and foreign investors choose to go

elsewhere

The banks have to support business and the institutions. Im in favour of

upping the tax on certain financial revenues

FROM OUR CORRESPONDENT

SABAUDIA Sleeping in the little bedroom of the house where Corrado Passera is

spending the last few days of his holiday is little Luce, just one month old. The CEO of

Intesa Sanpaolo says that becoming a father for the third time at the age of 55 is not

just wonderful but also makes you think even more in the long-term. Makes you

reflect on the future, and in particular on the pervasive lack of confidence... the multi-

faceted vacuum that surrounds us. The recession, the lack of respect for the

institutions, the shirking of responsibilities by the ruling class in Italy it cant be

done, the resources are lacking, the decline is inevitable... generate fear and

uncertainty. Politics fails to map out a shared project for the future of the country, to

boost our economy and our democracy: this in turn undermines the sense of identity,

which is important because it holds society together. And yet there are lots of

elements on which trust can be re-built: we are the third economy in Europe on a par

with the United Kingdom and we rank sixth or seventh among global economies; we

have weathered the financial crisis better than almost any other country, and have

succeeded in keeping public accounts under control; we have the resources to win

through in the globalisation battle, partly thanks to the numerous hidden talents of the

Italian people. My professional experience confirms that even the most difficult

situations can be resolved when there is a strong, shared project, a willingness to

change and the determination to address problems. We managed to reinvent Olivetti

by staking on mobile phones, and we managed to get over the crisis of Intesa, which

in 2002 was in deep waters, and together with Sanpaolo build one of the finest banks

in Europe. But perhaps the most significant venture that I have lived through was thatof the Poste Italiane: a sort of metaphor for Italy. Theres nothing to be done, its over,

its too late, well never be like other countries; the unions, the bureaucracy... In a


3/7

word, the usual clichs. Instead, all together, the shareholders at the start Ciampi

and Maccanico the postal workers, the unions and the management, we achieved

what had seemed impossible. The reaction was fantastic, especially in the south of the

country. And it showed that it was possible to make innovative agreements with the

unions, extirpate local connivance with crooked politics and the criminal underworld,

restore dignity to the 200 thousand workers and even compete with the banking

system. Obviously, to take situations like these in hand you really have to commit

yourself, go against a lot of interests, make long-term plans and believe in people. But

this incredible experience only confirmed my belief that Italy has an enormous

potential, even in the public sector.

Mr. Passera, at the moment Italy is at a standstill. For years the economy

has been in stagnation, or minimal growth. Why? And where exactly do you

see this enormous potential?

The world economy is growing, and fast, and even though the growth is concentrated

in the developing countries, its a great opportunity for us too. Among the sectors of

greatest growth, there are some in which we excel: industrial automation, household

technologies fashion and agri-business. But think also of the health industry and that

of tourism. All these sectors are pilasters of our economy, where we can grow in a

sustainable manner. And we need a lot more than 1% a year if we want to create new

jobs. The Italy of enterprise is not standing still, its the countrys system thats not on

the move. We know perfectly well whats to be done, but we still dont do it:

infrastructure, training, decision-making processes, justice...

The legal system in particular is seen as one of the major problems.

The legal system has become problem number one: there can be no social contract

without rules that are agreed and obeyed, without rights that are protected, without

sanctions even social for those who fail to obey the rules. Thats not the way it is

now. And in such a situation trust in the State collapses, organised crime is

strengthened, corruption spreads and foreign investors choose to go elsewhere.

Evidently, at present those who dont want a functioning legal system have got the

upper hand. We have to address this problem at the roots, with courageous reforms

that reflect the principles of our Constitution.

Are you referring to the ongoing battle between politics and the judicial

system?

That too, but not only that, and not starting from now. Having a criminal, civil and

administrative legal system that works is not in the interests of the crooked, of those


4/7

who see the law as a curb on their illegal, or even merely parasitic, activities. Lots of

the lobbies dont want a legal system that works. But its intolerable slowness is just

one of the hindrances that is hampering our growth. Think of the institutional delays.

How long does it take to pass a government law? Apart from the obligatory measures

such as the Budget and the European Union Acts, how many draft laws get through

the mill in a reasonable time? Weve got to the stage of urgency decrees for

everything. We have no-one but ourselves to blame if we fail to put our shoulders to

the wheel and sort out the central administration, streamline the functioning of the

parliamentary committees and the regulation of the Houses of Parliament as well as a

serious electoral law that allows us to choose our representatives. Just reflect too on

the administrative delays. Blatantly unacceptable timeframes when were talking

about infrastructures. Without roads, bridges and railways, without innovative

telecommunications networks, without waste-to-energy and regasification plants, thecountry simply cant grow. There are at least five institutional levels between Brussels

and the Municipal Councils, and at each level there are sometimes dozens of different

bodies that have to take part in the decision- making process. All duly furnished with

the right of veto, but without any liability for paying the price of delay. The costs of

omission, of non-action, dont appear in any financial statement, but theyre huge. We

have to clarify for every type of decision who is to decide and within what

timeframe.

Yes, but where are we going to find the resources, without blowing the

public accounts sky high?

Its not easy, but the resources can and must be found: were staking our future on it.

If we want to retrieve at least a part of the time lost, we have to invest in a focused

manner 40-50 billion a year for 5-6 years. These figures arent out of our reach. There

are lots of public funds allocated and not spent, and the same is true of the EU funds.

There are many infrastructure projects that can be self-funded, or can mobilise private

funds. We talk about the lack of funds to carry out crucial works while tolerating

hundreds of billions of tax evasion and all sorts of waste and squandering of the 800

billion of annual public spending!

Can fiscal federalism be a way of recalling the local authorities to their

responsibilities?

Increased autonomy can strengthen our country and our democracy. But delegation

without control leads to an explosion of costs and fosters corruption; delegationwithout co-ordination leads to a loss of efficiency and responsibility. For example, our

tourist promotion is entirely ineffective, partly because it is fragmented: twenty


5/7

budgets of ten million each are much less effective than a single budget of two

hundred million. In certain areas, localism is counterproductive. There are sectors

such as transport and energy that call for a national, or even European, vision. Ten

small airports dont equal a major hub, and ten small provincial universities dont

automatically make up a centre of excellence.

How important is the Italian spirit of enterprise?

Its important to have in Italy big dynamic companies in every sector, both Italian and

non-Italian with their top management structures. The central managements of the big

international groups forge the managerial classes of all countries; this is why its not

enough to have in Italy just the commercial or logistic branches of companies that

have their heads elsewhere. In some sectors national ownership can have very

significant advantages, especially at times of economic crisis. Im thinking here aboutlarge-scale retail or banks.

So why did Intesa Sanpaolo make such a major commitment to Alitalia?

Because there were all the prerequisites for creating a sustainable new company and

saving at least 15 thousand jobs. The story of the new Alitalia is a fine tale. When we

were asked what could be done and Air France had already been off the scene for

some time we gave an opinion that the government certainly didnt relish at all. We

said that the old Alitalia had to go bust, because it no longer had what it takes to stay

on the market. It would have been a mistake to go on injecting billions of public

money. Nevertheless, as we saw it, it was viable to attempt an almost impossible

mission: to create with private funds a new Alitalia capable of competing in a very

difficult market. We gathered over a billion Euro and a new Alitalia was born which,

thanks to the managers, the shareholders and all those who work in it, is pulling

through. Theres satisfaction in that. In the teeth of all those who just kept on

repeating In Italy it cant be done.

But wont the new Alitalia end up in the portfolio of Air France just the

same?

Air France is a shareholder. So far, the new Alitalia has weathered the crisis better

than many of the blue-blooded European airlines, including Air France. If in a few years

there are further phases of European consolidation in this sector, Alitalia will be up

there alongside the key players.

You said that you recalled with horror the year when even at the Bocconi

they were doling out the automatic full marks. Is there a problem of


6/7

meritocracy in Italy?

Yes, and its very serious. This is why we lose lots of talented young people, who

prefer to go and try their luck elsewhere. Its a phenomenon thats not absent in the

private sector, but is common above all in the public world, where in many sectors the

promotion and salary ladder is linked solely to length of service. Take the school

system: a good teacher whos committed and keeps abreast commands exactly the

same salary and place in the rankings as a teacher whos unprepared and just

treading water, or even absent. The schools ought to be able to choose their own

teachers, at least in part. A university education should be genuinely accessible to all

those who deserve it, as laid down in our Constitution. The role of women in the

workplace ought to be valorised; I personally now tend not to sign promotion lists

unless theres a sufficient number of women.

So youre in favour of female quotas?

Yes, legally obliging the appointment of women on the boards of directors, even if its

not an ideally meritocratic mechanism, can represent one way of catching up on Italys

backwardness in this sphere. The big companies can and must take a lead in this.

But is it not true that Italys strength lies in the small enterprises?

The small enterprises are one of our strengths, we have to foster the creation of new

ones and make life less uselessly complicated for the small businessmen. In many

sectors, however, where large investments are called for, small dimensions can be a

serious drawback. We also need organisations performing research and training, where

skills linked to complex issues are valued. This happens above all in the large and very

large companies. If we werent the size we are, our bank wouldnt be able to have a

research department with dozens of people doing their job. Despite this, in Italy the

rules from tax laws to employment rights dont encourage clusters; on the contrary

they provide incentives for staying small. And so we have entrepreneurs with 3 or 4companies, all of them with fewer than 15 employees.

How do you see the role of the banks?

Theres little sense in talking generically about banks. Theres no banks category,

generically speaking. All over the world there are banks that support the economy,

and others that are not even worthy of the name of bank, since all they engage in is

financial speculation. The banks of the real economy, the commercial banks, can play

a crucial role in society. They have to be out there supporting the enterprises and the

institutions in all the sustainable projects that create development, like Intesa


7/7

Sanpaolo are doing, for example, with our bank devoted to infrastructure. And they

also have to support the world of the third sector and social enterprises, as we are

with Banca Prossima.

Are new rules needed?

Real economy banks arent afraid of rules, on the contrary they demand them.

Personally Im even favourable to upping the tax on certain financial revenues, which

are too low in Italy compared to the European average, and to a reasonable tax on

financial transactions. Unfortunately as regards to rules that could prevent the

repetition of devastating crises, as yet they appear to be very thin on the ground.

What exactly are you referring to?

The crisis was brought about by an array of reasons macro-economic, ideologicaland of governance and undoubtedly also by a lack of rules and curbs on unbridled

leverage, on excessive speculation on liquidity and overuse of derivative instruments.

These problems still havent actually been defused. So far weve been focusing above

all on capital requirements.

But even the real economy banks are often criticised. In Italy theres an

underlying rhetoric against the banks. But there is also real suffering. Do

you ever think of the families who risk losing their home?

So far, in Italy, weve managed to avoid almost entirely this social drama that has

struck many countries. We havent had any particular housing bubbles, and there

hasnt been any mortgage crisis. When tensions might have been created, we

invented various kinds of moratoria. Then in Italy there was no need for any public

bail-out of the banks. Clearly the crisis was felt suffice it to think of the billions of

loans losses. But even at the toughest moments, we didnt pull back. Now we have to

relaunch growth all together in order to create employment, which is the most crucial

issue and in this period the most seriously overlooked. Italy, unfortunately, is spending

the summer steering clear of the subject.

Documents

Traduzione en 20100819 - Corriere Della Sera