The Italian Prime Minister, Mr Romano Prodi, yesterday said that Italy has no "official" candidate for the post of governor of the future European Central Bank. Refusing to criticise the French government's nomination of French central bank governor, Mr Jean-Claude Trichet, for the controversial post, Mr Prodi added: "There is still a lengthy procedure to go through before appointing the new governor. . . . What I have already said and I repeat today is that if the appointment of [Bundesbank President] Hans Tietmeyer would reassure German public opinion, I have nothing against it."
Mr Prodi, who made his remarks during a news conference with the foreign press corps in Rome, went on to reaffirm his belief that his 18-month old centreleft government has not only gained badly needed international credibility for Italy but has also overhauled state finances so effectively that Italy is now in line to take part in European Monetary Union (EMU) from the outset on January 1st, 1999.
Looking and sounding relaxed during an informal meeting in Palazzo Chigi, he answered a wide range of questions about international and internal affairs before inviting the press corps into his private apartment for a lunch hosted by his wife, Flavia.
Asked about last month's government crisis, Mr Prodi argued that his executive had been reinforced rather than weakened by a crisis which had seen him tender his resignation for a five-day period, following difficulties with his allies, hardline left-wing party, Rifondazione Communista, which had threatened to vote against the $11.5 billion austerity budget for 1998. Although Rifondazione holds no government post, the Prodi Olive coalition depends on its votes for its parliamentary survival. Rifondazione had objected to social welfare and pensions cuts in the budget package but eventually settled its differences in return for a government pledge to promote legislation introducing a 35-hour working week by 2002.
Mr Prodi argued that last month's crisis had proved beyond doubt that the vast majority of public opinion wanted his executive to stay in office, so that it could oversee Italy's participation in the first phase of EMU. He said: "People like to say that sections of the media, the televisions, kept us in power. But that is not so. The electorate kept us in power . . . It was the pressure coming from the Italian people which eventually forced certain people [Rifondazione] to change their minds."
Asked if he foresaw further problems in his government's difficult relationship with Rifondazione and its leader, Mr Fausto Bertinotti, Mr Prodi answered: "I had a very long talk with Bertinotti. I was precise but open about fundamental problems. There is no reason to say that there have been problems since we made our agreement last month."
In relation to EMU, Mr Prodi was adamant that his government had not engaged in clever accountancy over the last 18 months but instead had instructed fundamental changes which would ensure that Italy would meet the Maastricht convergency criteria, not just this year and next. Looking back over his 18 months in office, Mr Prodi suggested that Italy's leadership of a multinational task force in Albania this summer represented an important resumption of Italian responsibilities on the international stage.