New alliances and old challenges: Meloni’s trip to New York and the future of the Italian Pension System
The visit of Prime Minister Giorgia Meloni to New York, which culminated on Tuesday with her speech at the United Nations General Assembly, was marked by a busy diplomatic agenda and meetings with representatives of the innovation sector. During her address to the General Assembly, Meloni touched on crucial issues such as the need to avoid the creation of “first-class and second-class countries,” emphasizing the importance of international cooperation based on mutual respect and addressing “the root causes of migration”. It is well known that the mission to New York represented an important opportunity to strengthen Italy’s international position and promote multilateralism. And the Prime Minister, as expected, seems to have exceeded expectations, as evidenced by the award of the “Global Citizen Award 2024” by the Atlantic Council. The prize was presented to her by Elon Musk for her role as the first female head of government in Italy and for her support of the European Union and the transatlantic alliance. The event, which certainly did not go unnoticed, also caused some discontent in the United States due to Musk’s connection with former President Donald Trump.
On the same day, across the ocean, the President of INPS, Gabriele Fava, presented the Institute’s 23rd Annual Report in the presence of President of the Republic Sergio Mattarella, the overseeing Ministers of the Institute, and the highest state officials. The document highlights the complexity of the Italian pension system, particularly in light of current demographic and economic challenges. Italy remains one of the countries with the highest pension expenditure in Europe, amounting to 16.3% of GDP, surpassed only by Greece and well above the European average of 12.9%. By 2050, it is projected that 35% of the Italian population will be over 65, putting further pressure on the pension system and making it necessary to broaden the contribution base and increase wages to ensure sustainability. Fava emphasized the need to involve young people more in building their own “pension nest egg” to ensure adequate pensions in the future. Moreover, the “silver economy,” associated with the aging population, could become a driver of economic growth, creating new job opportunities in healthcare and cultural services aimed at the elderly. Despite the challenges, the Italian pension system remains solid, as highlighted by the confederal secretary of Cisl, Ignazio Ganga, who reaffirmed the central role of INPS in supporting families, young people, and the elderly, effectively countering inequalities.
Another piece of news caught both national and international attention this week. UniCredit has recently strengthened its presence in Commerzbank, increasing its stake to 21% of the German bank’s capital. This move represents an important step in the Italian bank’s European expansion strategy, led by CEO Andrea Orcel, who sees the German market as an opportunity to consolidate its international influence. The operation has elicited various political reactions: while Italy is supportive, Germany has shown caution, concerned about an approach perceived as potentially “hostile”. This operation could mark the beginning of a broader collaboration or even a merger, but much will depend on the next steps and the attitude of German regulators and shareholders.
