Mario Monti (
Italian pronunciation: [ˈmaːrjo
ˈmonti]; born 19 March 1943) is an
Italian
economist and academic who has been the
54th
Prime Minister of Italy since November 2011, leading a
government of
technocrats in the wake of the
Italian debt crisis. Initially, Monti was also
Minister of Economy and Finance.
Monti served as a
European Commissioner from 1995 to 2004, with responsibility
for the
Internal Market, Services,
Customs and Taxation from 1995 to 1999 and for
Competition from 1999 to 2004. Monti has also been Rector
and President of
Bocconi University in
Milan.
On 12 November 2011, in the midst of the
European sovereign debt crisis, Monti was invited by
President
Giorgio Napolitano to form a new technocratic government (in
Italian, governo tecnico) following the
resignation of Silvio Berlusconi. Monti was sworn in as
Prime Minister on 16 November 2011, just a week after having
been appointed a
Senator for Life.
On 8 December 2012, Monti said he would resign as Italy's
Prime Minister after passing the 2013 budget.[2]
Early life
Monti was born in
Varese on 19 March 1943.[3]
His mother was from
Piacenza. Although his father grew up in Varese, he was born
in
Luján in the
Buenos Aires Province, Argentina, where his ancestors had
emigrated to in the 19th century and built up a soft-drink
and beer-production business.[4][5]
Monti's father went back to Argentina during
World War II, but later returned to his family home in
Varese.[6]
Monti studied at the Leo XIII private catholic high school,
and attended
Bocconi University of
Milan,
where he obtained a degree in economics in 1965. Later he won a
scholarship to
Yale University,[7]
where he studied under
James Tobin, a recipient of the
Nobel Prize in Economics.[8]
Academic
career
Monti began his academic career at the
University of Trento; he then taught economics at the
University of Turin from 1970 to 1985, before moving to
Bocconi University, where he was appointed rector from 1989
to 1994, and of which he is president since 1994. He also served
as president of the
SUERF (The European Money and Finance Forum) from 1982 to
1985.[9]
His research helped to create the
Klein-Monti model, aimed at describing the behaviour of
banks operating under monopoly circumstances.[10]
European Commissioner
Santer
Commission
In 1994, Monti was appointed to the
Santer Commission, along with
Emma Bonino, by the first
Silvio Berlusconi cabinet. In his office as a
European Commissioner from 1994 to 1999, he was responsible
for Internal Market, Financial Services and Financial
Integration, Customs, and Taxation. His work with the commission
has earned him the nickname "Super
Mario" from his colleagues and from the press.[11]
Prodi
Commission
In 1999, Prime Minister
Massimo D'Alema confirmed his appointment to the new
Prodi Commission and he was given one of the most powerful
positions at the Commission,
Competition Commissioner.[12]
As Competition Commissioner Monti led the investigation into
a number of high profile and controversial mergers, including:
Scania AB &
Volvo
(1999),[13]
WorldCom &
Sprint (2000),[14]
General Electric &
Honeywell (2001),
Schneider Electric &
Legrand (2001)[15]
and
Carnival Corporation &
P&O Ferries (2002).[16]
His term in office also saw the
European Court of Justice, for the first time, overrule the
Commission's decision to block a merger in three separate cases,
although two were decided by his predecessor.[17]
Monti was also responsible for levying the EU's largest ever
fine at the time (€497 million) against
Microsoft for abusing its dominant market position in 2004.[18]
Monti was criticised in the media and by competition lawyers
for the perceived inflexibility of the merger oversight process
and the high number of cases that were being blocked.[13][19][20]
On 1 November 2002, Monti responding to the European Court of
Justice's ruling which reversed his decision to block the merger
between
Airtours & First Choice Holidays said, "Last week was a
tough week for the Commission's merger control policy - and of
course for me."[17][20]
This ruling in combination with his decision to block the
General Electric & Honeywell merger led to criticism in the
United States against both the Commission's procedures and
accusations that Monti's decisions were politically motivated.[21]
Monti, however, was defended by supporters who saw his actions
as an important step in the development of competition law in
the EU. Dan Rubinfeld, economics professor at the
University of California who worked on the US Justice
Department's antitrust case against Microsoft, said of Monti,
"There has been a lot of talk of politics in this and other
cases, but I believe he has been driven entirely by the desire
to do the right thing."[17]
On 11 December 2002, Monti proposed a series of reforms to
the EU's merger rules and made structural changes within the
Commission's Competition department which aimed to improve
transparency for companies throughout the merger review process.[22]
The reforms were adopted by the EU as
Regulation 139/2004 (known as ECMR).
In 2004, Prime Minister
Silvio Berlusconi returned to power in Italy and did not
re-appoint Monti to the
Barroso Commission.[23]
Barroso
Commission
In 2010, Monti, then no longer a European Commissioner, was
asked by Commission President
Manuel Barroso to draft a "Report on the Future of the
Single Market" proposing further measures towards the completion
of the EU's
Single Market.[24][25]
The published report, adopted by the EU on 13 April 2011,
proposed 12 reforms to the Single Market and was intended to
"give new momentum" to the European economy.[26]
Prime Minister
Appointment
On 9 November 2011, Monti was appointed a
Lifetime Senator by
Italian President
Giorgio Napolitano.[27]
He was seen as a favourite to replace Silvio Berlusconi to lead
a new unity government in Italy in order to implement reforms
and austerity measures.[28]
On 12 November 2011, following Berlusconi's resignation,
Napolitano invited Monti to form a new government.[29]
Monti accepted the offer, and held talks with the leaders of the
main Italian political parties, declaring that he wanted to form
a government that would remain in office until the next
scheduled general elections in 2013.[30]
On 16 November 2011, Monti was officially sworn in as
Prime Minister of Italy, after unveiling a
technocratic
cabinet composed entirely of unelected
professionals.[31]
He also chose to hold the post of
Minister of Economy and Finance.[32][33]
On 17 and 18 November 2011, the
Italian Senate and
Italian Chamber of Deputies both passed motions of
confidence supporting Monti's government, with only
Lega Nord voting against.[34][35]
Austerity
measures
Monti during his swearing-in.
On 4 December 2011, Monti's government introduced emergency
austerity measures intended to stem the worsening economic
conditions in Italy and restore market confidence, especially
after rising
Italian government bond yields began to threaten Italy's
financial stability.[36]
The austerity package called for increased taxes, pension reform
and measures to fight tax evasion. Monti also announced that he
would be giving up his own salary as part of the reforms.[37]
On 16 December 2011, the
Lower House of the Italian Parliament adopted the measures
by a vote of 495 to 88.[38]
Six days later the
Upper House gave final approval to the package by a vote of
257 to 41.[39]
Labour
market reforms
On 20 January 2012, Monti's government formally adopted a
package of reforms targeting Italy's labour market. The reforms
are intended to open certain professions (such as taxi drivers,
pharmacists, doctors, lawyers and notaries) to more competition
by reforming their licensing systems and abolishing minimum
tariffs for their services.[40][41]
Article 18 of Italy's labour code, which requires companies that
employ 15 or more workers to re-hire (rather than compensate)
any employee found to have been fired without just cause,[42][43]
would also be reformed. The reforms to Article 18 are intended
to make it easier for companies to dismiss or lay-off employees,
which would hopefully encourage companies to hire more employees
on permanent rather than short-term renewable contracts.[43]
The proposals have been met by strong opposition from labour
unions and public protests.[44]
In early January 2012, consultations between the government and
labour unions commenced[45]
and on 13 February it was reported in the Italian media that a
compromise on the proposals was very close and the government
was hopeful that reforms could be approved by the Italian
parliament in March.[46][dated
info]
Think tanks
Monti actively participates in several major
think tanks. He is a member of the Praesidium of
Friends of Europe. He was the founding chairman of
Bruegel, another European think tank, which was formed in
2005. He is also the European Chairman of the
Trilateral Commission, a think tank founded in 1973 by
David Rockefeller.[47]
Monti is a leading member of the exclusive
Bilderberg Group.[48]
He has also been an international advisor to
Goldman Sachs[49]
and
The Coca-Cola Company.[50]
He has also been a member of the "Senior European Advisory
Council" of
Moody's[51]
and he is one of the members of the "Business and Economics
Advisors Group" of the
Atlantic Council.[52]
In 2007, Mario Monti was one of the first supporters of the
first European civic forum, États Généraux de l'Europe,
initiated by European think tank EuropaNova and European
Movement. He was also a member of the French government's
Attali Commission from 2007 to 2008,[7][53]
appointed by
Nicolas Sarkozy to provide recommendations to enhance
economic growth in France.
Monti is a founding member of the
Spinelli Group,[54]
an organization launched in September 2010 to facilitate
integration within the European Union (other members of the
steering group include
Jacques Delors,
Daniel Cohn-Bendit,
Guy Verhofstadt,
Andrew Duff and
Elmar Brok).
Resignation
On 8 December 2012, Monti said he would resign as Prime
Minister of Italy after passing Italy's 2013 budget.[55]
Personal life
Monti is married to his wife Elsa[56]
and has two sons.[57]
Known for his reserved character, Monti acknowledges not
being especially sociable.[58]
He has said that his youth was given over to hard study;
spare-time activities included cycling and keeping up with world
affairs by tuning in to foreign short-wave radio stations.[58]
Awards
and decorations