Minister Tajani, how should Europe respond?
«Calm and cool-headed. It must negotiate with its head held high knowing that it is in everyone’s interest to avoid a trade war. Europe needs the united States and vice versa».
What do you think of the postponement of the European counter-tariffs to August 1?
“A wise choice. Firmness is shown not by rash reactions, but by strong negotiations. We have two weeks. I spoke with Commissioner Sefcovic yesterday, we stand by the European Commission».
Is there any margin to strike a deal?
“My mantra is to get to double zero: no tariffs between Europe and the United States. I realize it is not easy, but it is the only way to make our economies grow together. In the meantime, we will do everything to protect our most exposed supply chains. Starting with automotive, pharmaceutical, wine and agri-business sectors. We will demand that any EU countermeasures do not harm these sectors».
How can a deal be made in such a short time?
«We could reach an agreement in principle as the UK did and in the following months engage in technical negotiations on individual trade chapters».
Without an agreement, what will happen?
«A 21 billion euro list of European tariffs is ready and a second one could be added. I am confident there will be progress. Tariffs hurt everyone, starting with the United States. If stock markets go down, Americans’ pensions and savings will be at risk. I reiterate that, looking to the future, our goal is zero tariffs. An open market between Canada, the United States, Mexico and Europe».
What Europe can do to protect its companies?
«A strong euro reduces inflation risks, and interest rates could therefore fall further, even though they are already at 2 percent. With a strong currency, which actually penalizes exports (in addition to tariffs), with rates already low and minimal inflation risks, the best way to support growth is to boost domestic demand, as well as find more foreign markets».
How?
«A new expansionary policy by the European Central Bank that cuts rates but more importantly proceeds with bond purchases, perhaps to finance defence and industrial policy programmes – such as cutting energy costs- – and healthcare could serve the purpose».
A Quantitative Easing 2.0?
«It can be a way; it has already been done in response to the Covid pandemic. The alternative option is to issue more European debt but, as is well known, several countries are against it, starting with Germany».
Let us revert to President Trump. Can he really be considered an ally after the latest rift on tariffs?
«President Trump is serving the interest of the United States, Europe has to protect its own. Having good relations does not mean accepting everything».
Opposition parties accuse Prime Minister Meloni: is the political “bridge” built with President Trump showing any cracks?
«How can we not have a bridge with the United States? It is our main ally. Should we do like former Prime Minister Conte, side with China and maybe get out of NATO? The opposition parties do their job but you cannot “Italianize” everything. We also had very good relations with Democrats Biden and Blinken».
Matteo Salvini accuses President von der Leyen and claims that the “EU follies” hurt Italy more than U.S. tariffs. Do you agree?
«I disagree. Europe has nothing to do with U.S. tariffs. You can criticize – and I myself did so as a MEP – EU policies that hurt our companies, such as certain excesses of the Green Deal. But thanks to the fourteen Commissioners of the European People’s Party, this Commission has already corrected the course».
Do you have a relief plan ready for companies if things go wrong?
«We are ready to consider measures to support our companies, for example through the NRRP funds made available after the last remodulation. In the meantime, we are working to protect supply chains with the export plan and open up new opportunities in markets such as India, Latin America, Mexico and Canada, the Gulf countries, the Balkans and Japan».
Another pending dossier between the United States and the EU is the EU-Mercosur agreement. Will Italy sign it?
«The EU-Mercosur agreement must be signed. It is an extraordinary opportunity for our companies. However, we must balance that agreement with guarantees to protect our most exposed agricultural sectors».
Today you leave for Washington, where President Trump is expected to announce sanctions against Russia. Are we at a turning point?
«Our common goal is peace. But Russia is not participating seriously in the negotiations; it rejects every US offer. We need new financial sanctions to hit the Russian war machine. More than a million soldiers receive higher salaries than workers. It is time for conveying a strong signal that forces Putin to come to the negotiating table».
Let us close our interview focusing on internal affairs. On Wednesday, you will meet to decide on regional elections. Will a League representative be the candidate running for the post of President of the Veneto region?
«In Veneto, as in the other regions, we need a winning candidate, regardless of party affiliation. We, as Forza Italia, will make our proposals. Flavio Tosi would be an excellent President of the Region: he was mayor of Verona, Health Councillor, Member of Italian Parliament, and MEP. We will discuss this without preconceived ideas».
