“Made in Italy production is one of the government’s priorities”

For the special Domus for Design, the undersecretary Pier Paolo Baretta talks about present and future scenarios, about the possibility of re-opening, and other initiatives by the cabinet in an Italy blocked by the Coronavirus.

Domus is presenting a manifesto in support of design, which from our point of view is not just a sector of the economy, but a way of seeing and operating worldwide which has been part of Italy’s identity since the Renaissance. What do you think?
I have always maintained that Made-in-Italy production, of which design is a part, is a combination of quality and beauty. Not mere figures that feed our national economic statistics, but a way of life that needs to be protected and defended, because it is the foundation on which the success of our products on the international market is based. This is not to play down the importance of the figures concerning an industry made up of 29 thousand companies throughout the country, 48 thousand employees and revenue of approximately 4.3 billion euros, forming part of the wider-ranging fashion production chain, quality manufacturing, and the every-broader range of Made-in-Italy production.

What initiatives is the Government planning in order to get the Made-in-Italy sector up and running again in the post-pandemic period? Give me three examples that you consider the most important.

Made in Italy has, together with health, been one of the government’s priorities since the beginning of the crisis. As far back as the end of February, when the pandemic seemed manageable, confined to China and far from our borders, the first response of the government was to lend support to an important programme for the promotion of Made-in-Italy production. This involved an investment for over 700 million euros, set up by the Institute for Foreign Commerce and SACE-Simest on the basis of three fundamental principles: credit support for companies operating in foreign markets, a special communication strategy to support Made-in-Italy products, and a strengthening of the presence of Italian products in mass-market retailing both in mature markets (the USA, Germany, Japan, and so on) and in emerging markets not affected by the Coronavirus emergency. These initial measures were joined by more recent actions set out by the “liquidity decree”. In particular, the Guarantee Fund for small- and medium-sized companies has been strengthened, thus becoming an instrument providing support for small- and medium-sized companies and protecting businesspeople, artisans, free-lancers and professionals, as well as safeguarding export and all sectors related to Made-in-Italy excellence. With the intervention of SACE, the Italian Export Credit Agency, 100% guarantees for up to 200 billion euros are being provided to all businesses looking to invest in strengthening internationalisation and export processes. I believe that this is the way to go, without neglecting the effects in terms of impact on reputation that this crisis could generate. If Made in Italy represents quality and beauty, as I have already stressed, then we need to focus on safeguarding our way of life and our identifying values in order to ensure the economic recovery that we need.

I have always maintained that Made-in-Italy production, of which design is a part, is a combination of quality and beauty. Not mere figures that feed our national economic statistics, but a way of life that needs to be protected and defended, because it is the foundation on which the success of our products on the international market is based

There is talk of new and never-before-seen scenarios, of a new normality. How do you see this? How do you see the role of Italy in this new phase?

In this period, we all feel the need to fully return to our normal lives, to get our businesses running and to reopen our cities. Together with the Regions, local administrations and various governance organisations, the government is working in this direction, to set out a re-opening programme oriented by science and medicine, and the essential principle of precaution. I believe that, as was the case in the management of the health crisis, Italy could be a point of reference in the international community. We were the first Western country to be hit by the Coronavirus emergency and, as the days and weeks have gone by, our model based on lockdown, the halting of economic activity and social distancing has been adopted by other European countries. We have been hit by an economic and health crisis that will have wide-ranging consequences on the social and psychological aspects of our society. Ten years ago, in the aftermath of the economic recession that followed the subprime loan scandal, I said that we would have emerged a changed nation. By changed, I meant better, but unfortunately this was not the case. I hope that we will not now see the emergence of those dynamics so well-described by Pope Francis when, a few days ago, he spoke of a crisis of selfish indifference. We need to have the strength to rebuild the world and our nation, without leaving anyone behind.

Euro in crisis. Will we be able to remain part of Europe? What contribution can we make?

There is absolutely no doubt regarding our permanence in Europe. As has already been said by financial experts, including the ex-president of the ECB, Mario Draghi, the only plausible response to this crisis is an increase in public debt. This will be more efficient the stronger and quicker our reaction is. The actions of some countries are incomprehensible in this regard, but the Commission is making positive decisions. The measures used up to now, until the 2008 crisis, are ineffective, as we are currently faced with an emergency the extent and impact of which has never been seen before. I believe that the contribution of our country, together with that of the other eight nations which, together with us, support the need for Coronabonds, is to once again focus European debate on the social and not merely economic origin of the Union of which we are members and  proud founders.

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