 I am very delighted to welcome a young leader but a very important personality for the future of Europe, Prime Minister, or as they say in Italy, the President of the Council of Ministers Matteo Rensi of Italy to the annual meeting. Prime Minister, I should use the opportunity to tell you how impressed we were by the cultural message of your country yesterday. It was a very moving moment, and I am sure we will be impressed by your political message just to follow. Following our meeting and discussions, I must say how pleased we are to have such a strong presence from Italy this year. Not only you, but members of your governments. And Prime Minister, I should also tell the audience that you just celebrated last week a very special birthday. So congratulations. You assumed leadership of Italy's government in February 2014, so just a year ago, and we all know that it has been an incredibly busy 11 months for you coming at a particular critical time for Italy, for Europe, and for the world. You took office with an ambitious reform agenda and have successfully passed, and that's not always recognized internationally, the Jobs Act in Parliament and the Senate as a key pillar of economic reform. You also have tackled political and institutional reform in the justice and parliamentary system, and at the same time, you have also held successfully the presidency of the Council of the European Union. Prime Minister, your vision, your usefulness, your resilience, your energy are welcome in Europe today. At this year, at our annual meeting, we all know we live in a rapidly changing world, and Italy, as a member of the G8 or as a member of the G20, as being one of the ten most important economies in the world, still have a large saying as far as our future is concerned. So Prime Minister, the floor is yours to be followed by a conversation with my colleague, Billy Brössler, former Vice-Chancellor and Minister of Economy of Germany. Prime Minister. Thank you so much, Mr. President, ladies and gentlemen. So after the birthday, I'm out of Young Global Leader of Davos. I finished because over 40 is finished this time, but I'm really, really glad to be here, and I appreciate your invitation. Also, if not very easy, speaking about the future of my country, because you know, and you listened yesterday, while Andrea Bocelli showed every quality of the lyrics, music, of our tradition, how many important is the past in our country, an incredible country, rich of culture, masterpieces. It's not very easy to discuss about the future, but it's absolutely an enthusiastic moment for our country. This is an incredible window of opportunity in Italy today. So I know there are a lot of risks. There are a lot of risks in Italy, in Europe, around the world. Not to see the risks is stupid for a politician, but to transform risks in opportunities is the quality of leadership. And every year, every season, every era presents a lot of risks. I was born in 1975. Italy is in the period with great growth, but a lot of problems, for example, of terrorism inside our countries. Europe was a place without democracy, without a strategy for European institutions. 1975 was exactly the moment in which for the first time it was decided the direct election of members of parliament in Europe. And if you think, what was divided between western and eastern blocs? So every season, every era presents risks. And also today, we see a lot of problems, of difficulties. But I believe this has a particular opportunity. And I think the role of politicians must be that, sees the moment. I use an expression that comes from Rome, ancient Rome, Carpe Diem. This is exactly the moment in which we can choose the future after a lot of difficulties. So very, very briefly, I think this is the moment, first of all, in my country. Italy needs an incredible season of reforms. And the future is a start. I'm not here to present a future of tomorrow. For my country, the time of future is today, not tomorrow. We started with the change of labor market, with the fiscal system, tax reforms, with the civil justice, with a solid and strong ability to innovation of the civil justice, with the innovation technologies in the court. And I believe absolutely important the new approach in the public administration. Because I believe our enemy is a tape of bureaucracy. And give time clears and a possibility to ensure the investment for Italian entrepreneurs and international capitalism is one of the most important thing. But at the same time, we present in the first year of government a constitutional reform with more than 40 articles, one-third of Italian constitution we changed, because we think constitution is very important, it's very beautiful. But we need the constitution for the future, not only for the past. And a new electoral system to give finally, also in Italy, the possibility to choice the leader for five years. My government have in front three years of governments. I think we must absolutely create the condition because we'll be clear the winner as the leader of the country for a period, a stable period, and not with the change, continuous change of government. But in this job, we are very, very, very happy because we have a lot of Italian people who believe that the place of Italy is not simply a museum. If I think about the future of my country for my children, I don't image to describe Italy as a museum. I appreciate museum, quality, culture, and lifestyle. But I prefer image my country as an innovation lab for my children. And for that, we need a different idea of Europe. This is the second big point. A different idea of Europe for Italy come after structural reforms because if we wait by European friends and colleagues the ability to solve our problem, we are finished. We must make our reforms because this is important in our country. But we must also say very clearly European direction is not in economic the correct direction. I participate as my colleagues to Brisbane summit of G20 in the last November. Every continent, every country spoke about the necessity to invest in a growth every country, Europe apart, Eurozone apart. Eurozone spoke only about austerity. So I think it's absolutely important to maintain attention to budget, reduce the taxation, invest in a different idea of relation between citizen and the leadership. But I think also this is the time in which European direction stress with more attention the importance of growth and public and private investments not only a discipline of austerity. For this reason I think the first steps of new commission and the discussion in the next days of European Central Bank and let me be very clear I respect the independence of the European Central Bank could help Europe to give a message of new in economic direction but Europe is not simply an economic community. I spent the January 11 Sunday in Paris with other colleagues after the terrible attack to the capital of France and one of the most important capital of Europe and the world. I spent with other colleagues and I felt the idea very clear Europe is not simply Euro. Europe is not simply a currency on a budget policy. Europe is first of all an idea who ensure 70 years of peace, 70 years of prosperity, of stability and so for this reason I believe absolutely important Europe could be in the next years not simply the last but the place in which we can give a message of innovation in the economics and also in the culture and in values and in the ideals. This is the request to come from around the world for Europe. If you think this is the moment in which Russia and Ukraine but also Syria and Iraq but also Libya very important discussion show to everybody the real importance of a very strong idea of Europe around the world. I think if we combine together the necessity of structural reform in the economy the necessity of change of mind in the European people and the necessity of a new international order we can give a possibility to this country and in general to an idea of politics as a possibility of solve problems so I conclude exactly from the same point of the start of my speech. Yes, there are a lot of risks. In part new risks international terrorisms idea of lack of sustainability but I believe if finally the leadership is able to invest in the future not as a problem but as an opportunity we can finally come back to the message very, very significant to our citizens. Carpe diem means exactly that. I can speak about commodities about the relation between euro and dollar but the possibility come from the new reform in Europe. This is very important but not crucial. The real crucial point the key point for the new Europe and for the new Italy is image an idea of future focused on the ability to invest in the new generation and not simply to maintain the traditional approach in future is a problem and if this could be possible I think Italy is a great country not for the culture not for the values not for the music but it's a great country because Italy in the past was the place in which what possible invest in innovation and I believe for my children Italy will be an innovation lab and not a museum and this is the reason for the which we serve this country and for the which we change with the structural reforms the traditional country very beautiful but the best moment for Italy is not yesterday will be tomorrow. So ladies and gentlemen Prime Minister thank you very much for this impressive speech first. Second you mentioned a lot of reforms and you achieved a lot in nearly one year some would say you achieved more than all your predecessors in the entire mandate for example reforms such as the reform on the labour market and now please Prime Minister let us ask what is your next reform high on your priority list to improve Italian's competitiveness? I have a long list labour market, yes realised the fiscal system public administration I prefer school and education and the university reform constitutional reform electoral reform but let me be very clear I think the most important structure reform for Italy will be credibility because we lost a lot of opportunities in the past for lack of credibility we lost a lot of opportunities because the government changed because we didn't respect in the past every deal so this is the time in which very important labour market very important justice very important public administration very important education but the first structural reform for us will be the credibility and the credibility for Italy is the key point for the future Great, particularly because you know the headline is new global context but the meta message of this annual meeting is how to deal with the decline of trust so it's excellent to hear something about this and you have been successful on your national level with your national reforms but at the same time last year was the time the semester of the Italian presidency of the EU you have been successful as well given the new interpretation of the growth and stability pact and traditionally the annual meeting is a place to strengthen our hope into Europe you started in your speech in the Eurozone giving all the anti-discussions like Greece in coming elections like the exchange rates of the currency given here in Switzerland so my question is how can you foster our trust into Europe and the Eurozone I'm not very happy for the results of the presidency of Italy I'm not very diplomatic and so I think the results are 50% good and 50% bad why? because we convinced the other colleagues to invest in innovation and in growth the pact of stability in the bureaucratic expression of Europe is not pact of stability it's pact of stability and growth but in the past they cut growth and they cut the G of growth so we come back to the importance of growth with the investment plan of Jean-Claude Juncker we come back to a new role I believe for the European Central Bank we try to combine together the necessity of good results for the budget with the attention to investment and growth but I believe Europe in this moment must change the red tape of bureaucracy if Europe is only bureaucracy Europe is finished so I think the Gaspery at the now the Mitterrand call didn't build Europe to become a place of bureaucratic discussions but for an ideals and for economic interest now I think 12 months in front of us will be crucial because if we give an up with European Central Bank if we finally concrete the process of investment of Jean-Claude Juncker and if we reduce the spread the real spread in this moment is not between Bund and Titoli di Stato in this moment spread is the dreams of the citizens and they have the expectation of the citizens young citizens and concrete results of European leaders if we reduce this spread with a different approach in bureaucracy in Europe I think we will win for the moment I think is 50% 50-50 as a result of Italian presidency so after discussing Italian reforms the issues on the European level allow me a more personal question as a last question so the annual meeting is always about leadership and here in the audience in the respected audience we have a lot of leader business leader, political leader leader of the civil society and they are here today to discuss the new global context and all the challenges we are facing the crisis and the economic challenges so I would like to ask you as a leader of an important country like Italy in an important region like Europe would you share one of your leadership moments you have had in the past in your new role as a prime minister of Italy so that we can learn something for all the issues all the challenges we try to address with this annual meeting it's not easy to give a brief answer I think that this is a moment in which really we can build a piece of new international order really really in every part of the world and I know it's not easy if I think about Libya I know the new international order is not very clear because three years ago Neto decided to strike in Libya and now the situation was good to remove a danger a dangerous leader but now if I think about Libya I know this is the place from which we can receive a global attack because a lot of instability in Libya could be a problem for every country in Europe, just one example so I know there are a lot of problems but I believe in face the new challenges I think politics come back this is very important for a lot of years maybe somebody also here think the future is economy it's not correct it's not true economy is very important but without a political leadership we are not in condition to invest in a different world so my personal point of view is that after a lot of events also the last event in Paris there are the ability to understand finally politician and politics come back to play a key role obviously this means we must absolutely change laws and change situation, difficult situation but also give a vision and exactly this is the strategy today my country is famous around the world for the division in every city not only in the soccer stadium but in the discussion, in the public debate Italy is famous as a country of divisions I hope Italy could come back offer a vision not only a division a vision focused on the new renaissance I was the former mayor of Florence renaissance was decisive for the economy, for culture, for ideals when decided to invest in the quality of values and in the quality of human being I hope this could be a period in which a new renaissance could change the situation around the world obviously depend on the quality on the dreams but also the concrete projects I'm not believable if I don't change structural reforms in my country we started, now is the time for the development these are faults but combined together concrete and the dreams is the only way today in the difficult times but also in the exciting times so thank you very much Prime Minister and we are just in time first, thank you very much for Italy is not normal that's a question of credibility so I think we delivered at this moment for the people in Italy for the people in Europe and for the people on a global level thank you very much you are the new face of Italy you are the leader and hope you see you soon maybe here on the stage at our next annual meeting thank you very much