Italy's business 'showgirl' is not just a pretty face

When prime minister Silvio Berlusconi addressed the annual congress of Confindustria, the Italian employers' association, back in May, the audience was treated to a vintage performance in political incorrectness. As well as hectoring Italian magistrates over the conviction of British lawyer David Mills for a bribe he allegedly received from the Italian leader, Mr Berlusconi likened Confindustria's president, Emma Marcegaglia, to one of the showgirls who apparently come and go from his official residence in Rome. Bad taste aside, Italy's economic travails made Mr Berlusconi's performance before the country's business leaders all the more questionable. Mrs Marcegaglia let the incident pass. After all, the inappropriateness can have come as no surprise. Much better, as indeed has turned out to be the case, to indulge him on the day and let subsequent actions do the talking. Since taking over as leader of Confindustria, Mrs Marcegaglia - dubbed "Signora Steel" for her toughness and industry provenance - has surprised many for her ability to get things done. Having previously extracted €1.3bn ($1.8bn) from the government in loan guarantees for hard-up small businesses and a further €5bn in research grants, Mrs Marcegaglia shrugged off the premier's showgirl label. In recent days she has secured €4.5bn in tax relief for companies investing in new machinery, plus 5bn cubic metres of cheap gas for hard-pressed Italian businesses. She has also extracted a two-thirds reduction in the interest banks have been charging companies on unused credit lines. In a country where many keep their criticism of the government private for fear of the tongue lashing, Mrs Marcegaglia has undergone a refreshing bypass in the self-censorship department. She continues to remind Rome of the "national disgrace" of the public sector's late payments to private business running to tens of billions of euro. Her "tell us when you're going to pay us and then just do it" is a rare example of plain speaking in a country where a mix of sophistry and showmanship have all but buried a genuine political debate. Mrs Marcegaglia still has three-quarters of her four year mandate to run. By the time of Confindustria's next elections the country will be in the run-up to a national vote. If Mr Berlusconi's government survives that long, it looks sure to have disappointed on the deep structural reforms the country desperately needs. What might be termed the country's "other national disgrace" - an opposition incapable of opposing even Mr Berlusconi - presents even less cause for optimism. That leaves the possibility of a technical government of the apolitical talent Mrs Marcegaglia ably represents. By that stage such a crisis solution may be the country's best hope. A showgirl in government? Not exactly an original concept in Italy. After all, Mr Berlusconi appointed Mara Carfagna, a former beauty queen and presenter on one of his television channels, his minister for equal opportunities, who will be helping him host this week's summit of the Group of Eight industrialised nations in l'Aquila in the absence of the real Mrs Berlusconi. Continue ... http://www.ft.com/cms/s/0/ec8317a0-6b55-11de-861d-00144feabdc0.html