An Embarassing Episode for Italy

Nouriel Roubini on his encounter with Italy's Economy Minister:

On Friday I was in Davos in a panel on the "Ups and Downs of EMU" (European Monetary Union) where ECB head Trichet, Italian Economy Minister Tremont, a few other EU officials and myself were supposed to discuss the following questions: Will EMU collapse in the future? Which country will exit first? What will be the consequences of a break-up of EMU? How to avoid that? And what are the prospects for the Growth and Stability Pact? Unlike the other panelist that ignored the topic and spoke instead about all the good things allegedly associated with EMU, I took the questions seriously by considering some of the problems and risks faced by EMU and the risks of a break-up, especially for the case of Italy.

My remarks caused a stir with Minister Tremonti who interrupted me in the middle of my remarks, went into a temper tantrum and shouted - to the consternation of all participants - to me: "Go Back to Turkey!!". I happen to have been born in Istanbul; but more than offensive to myself his pathetic burst of uncivilized anger was an insult to the decent Turks who are currently trying to negotiate an agreement to enter into the EU. Before I give a full account of this incident that altogether embarrassed the irascible minister who made a fool of himself in front of a crowd of Davos participants, let me report almost verbatim my constructive remarks on EMU that triggered the pathetic and embarassing outburst of the minister.

"I have been introduced in this panel as presenting the "transatlantic" perspective on EMU. Actually, as I spent twenty years of my life in Italy and as I was born in Istanbul Turkey that will hopefully be one part a member of the EU my perspective is internationalist rather than transatlantic.