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Conversation With Francesco Pazienza

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For those of you who do not know him, Dr. Pazienza in brief

It would not be enough to write a whole book to describe this incredible character, let alone an introduction. Unfortunately we are forced to be very synthetic. He has been defined in many ways: Brasseur d’affaires, intelligence officer, freemason, playboy. He has been behind the greatest Italian mysteries of the First Republic and even beyond;

He kept in touch with heads of state, ministers, bankers, director of intelligence agencies, high prelates, and obviously beautiful women. Meant to be a doctor, after he graduated with honors (110/110) from medical college from Università “La Sapienza” Roma, he instead became the special adviser to General Giuseppe Santovito, former director of “Servizio informazioni e sicurezza militare” (former Italian Military Intelligence Agency). He caused President Jimmy Carter’s brother to be defeated at the election, thanks to his investigations into some financial affairs with Libyans and sexual encounters in a Rome hotel, thus leading to the Republican Party victory. Involved in the liberation of the Italian politician Ciro Cirillo kidnapped by Camorra and close to the legendary Roberto Calvi, the God’s banker president of Banco Ambrosiano, he knew personally Aristotle Onassis, David Rockefeller and used to spend his holidays on Persian Prince Ali Reza’s yacht. He personally organized the financing ($4million of gold ingots) of the Polish labour union “Solidarnosc”, with the final goal to destabilize the Communism on an international level and the preparation of the diplomatic meeting between Pope John Paul II and Palestinian leader Yasser Arafat. And all of this is just a taste. In other words, Mr. Pazienza has been, and continues to be, a multifaceted personality. The kind of man that is increasingly difficult to find today. With his savoir-faire typical of someone who, through thick and thin, as really lived life, he reveals himself exceptionally cultured, ranging from ancient China history to the most unusual details Winston Churchill’s life, his favorite historical character. All things considered, what we can certainly say after meeting him is that Mr. Pazienza is a first-class guardian of the truths concealed behind 40 years of Italian and world history. Get ready for next year’s next book, it will be an earthquake for everyone. We strongly suggest to read his first book as well. The title is Il Disubbidiente. However finding a copy might prove harder than you think since, “somehow”, it has disappeared from circulation.

Below we share some interesting and significant excerpts from our conversation with “Frank”, touching some topics of current concern in world politics and economy.

Libya

The first reflection that must be made on Libya is about the problem of the two Libyas.

The Italians risked taking off Haftar’s position, while Macron had straight away the courage to invite him to Paris. Libyans, as strange as it may sound, love Italians. They prefer to deal with Italians rather than with French. Let’s not forget that the mess, because mess is the only right word to use in this case, which we see nowadays in Libya, broke out thanks to Mr. Sarkozy. Subsequently, Obama, who, despite being a good internal affairs president, has done nothing but mistakes on a the international level, joined the French President in the operation against Gaddafi.

Frequent contacts between the Fayez al-Sarraj’s group and General Haftar’s group are taking place since the only thing that they can do at present moment is to reach an agreement. A key issue in Libya is represented by frontiers, which configuration depends on many interests linked to migrant routes. Al-Sarraj is trying to do everything possible to settle this frontiers matter, but clans and tribes are creating big problems because of the influence they gained in the last years on the territory. Once, every two or three months, Gaddafi use to depart with lorries loaded with loads of money and proceeded to distribute them to the various clan leaders, this how he managed to keep them all quiet.

Now Libya is in a very confusing state that must be removed as soon as possible. Potentially, it is a very rich country, having one of the best petroleum in the world, considering the sulfur rate close to zero.

It is essential that Al-Sarraj and General Haftar find an understanding; at last, Italy also decided to meet the Libyan General.

I believe that Libya will be stabilized in the next 6/12 months.

Trump, the United States, and the Shah of Persia

If you make an analysis of what Trump said during his election campaign and confront it with what he is doing now, you realize that, to name Al Capone in “The Untouchables”, he is “nothing but a lot of talks and a badge”. He backtracked to many times.

Recently, he is making a big fuss about the Iran’s nuclear deal.

Just consider that I was a close friend of Shah of Persia’s family and his son Prince Ali Reza’s partner. Moreover, I was also in the United States a business partner with Bob Armao, who was the  Shah’s Chief of Staff in exile. The Shah was dying of cancer, but they did not allow him to enter the United States. I remember spending the 1982 holidays with Prince Ali Reza, who told me “Can you believe it?! We spent the 1978 New Year’s Eve in our palace together with President Jimmy Carter and his wife; President Carter toasted with my father, referring to him as the most faithful friend of America in the Middle East. And just after a few years, they do not even let him enter the United States to get medical treatment ?! “

I remember that at the beginning of Ayatollah Khomeini’s regime the New York Times made an article in which he painted him as an illuminated character.

Today the Iranian regime has stabilized itself and among other things, if you go to Tehran, the worst car you can find around is a Mercedes 500. So to conclude, Trump now is talking so much, but he just should stop talking shit.

National Rifle Association

Everyone still goes shopping for weapons like they were candies. The National Rifle Association is such a powerful lobby that nobody has the courage to take a step against it. It brings millions of votes during each election. The Second Amendment of the US Constitution refers to the 1812 War against England when it was still demanded that everyone had weapons, so that in case of a call of duty, everyone would be ready. Can someone explain what the meaning of all of that now?! It also makes me laugh that by law some weapons cannot be sold as automatic. In fact, you simply go on the internet and for 30 bucks you can buy a small device that turns them to automatic in a blink of an eye.

National Italian American Foundation (NIAF) and US Think Tank

You can be sure that Trump will be present at the National Italian American Foundation (NIAF) Gala. The President of the United States must attend these events. Do you know the statement about American elections? To win the American elections you need the three “I”: Israel, Ireland, and Italy. Without the three “I” you do not become POTUS.

In my opinion, Think Tanks nowadays has a far more marginal role. The Center for Strategic and International Studies (CSIS) counted very much some years ago. It was the one that at the time of Reagan presidency practically imposed Haig as Secretary of State. Now too many of this kind of organizations have been created. The American Enterprise Institute does not matter anymore. They are realities that don’t serve more than just to businessman that, by paying expensive membership fees, can say to be insiders. The demonstration that these think tank are less and less influential is Donald Trump’s election, who had none of them to support him. Trump, from a negative perspective, is the equivalent of Carter. When Carter run for the presidency, he almost didn’t have the party (Democratic) support for election. Meanwhile, his brother Billy was invited for dinner by Gaddafi and bought a villa with George Habash. It is not like now that there are thousands of terrorist groups; At that time there were only two or three. The most important were the one of “The Doctor” because, let us not forget that, George Habash was a doctor.

Italy and international scenery

The future of Europe and Italy in particular, will more with the Russians than the Americans. The Russians, first of all, are Europeans like us; Secondly, we Italians have no raw materials and resources and therefore we must exploit technologies and capitals. Actually, the Russians do not know exactly the amount of resources present in the subsoil of Siberia or in other areas of their territory. I would also like to add that Putin, let me tell you, is a man with a thick skin; this is the reality of the facts. It is useless to say that Putin does not respect democracy. Look, let’s move on.

Surely we must be grateful to the Americans because if it were not for their intervention in World War II, we would still greet each other with the Fascist salute. But we must say that Americans do not understand a single thing in foreign affairs. This is my point of view.

China, New Global Power?

The Chinese intervention in Africa looks like this: the Chinese present themselves, at first as a third world countries benevolent supporter; however, after a while ‘time, they turn out to be nothing more than neo-colonialists. One example that comes to my mind is Chad, where the Chinese have invested a lot and have a great presence on the territory.

A special case concerns Iran, where they have invested so much: well, Iranians no longer know how to get the Chinese out of their way. An anecdote among many others concerns a large oil plant financed by China. It was necessary to build a gas pipeline, for which, as you know, pipes must have high-tech construction specifications. Suffice to say that three Chinese cargo ships have arrived later carrying water pipes instead. The Iranians got really upset, however, considering China’s $ 8 billion funding amount to the plant, they had to stay quiet.

I do not think China can overcome America in its role of leading global power. But I must say that the United States will be remembered as one of the greatest empires of all history, but also as the one that lasted less. The Roman Empire remained great for over 500 years, while the Americans if they continue to act as they keep acting …

(*)Interview by Andrea Bonetti and Alessandro Strozzi

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Europe

How Romania’s battles over corruption hamstrung economic progress

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When Romania took over the rotating presidency of the Council of the European Union in January, news coverage in Western Europe mostly focused on the tensions between Brussels and Bucharest over the latter’s judicial reforms. Jean-Claude Juncker publicly called Romania’s ability to fulfil its presidential duties into question; the European Commission, meanwhile, accused the ruling Social Democrats (PSD) of backsliding on corruption.

Since then, however, Romania has executed its presidential duties without a hitch, hosting European leaders for a major EU summit in Sibiu on May 10th that earned plaudits from top EU officials like Donald Tusk. In hindsight, has the overarching media narrative ignored important developments inside Romania? Does the Sibiu summit demonstrate that Romania has regained its footing as one of Europe’s most dynamic economies?

Economic growth no longer extraordinary

Romania’s economy, while still growing at an impressive rate, has slowed down from the remarkable rates the country was registering as recently as 2017— when its 7% expansion outpaced nearly all European peers. 2018 saw growth rates of 4%, while estimates point to 3.5% for 2019.

Since it joined the European Union in 2007, Romania’s per capita national output doubled to roughly 60 percent of the Eurozone average. Record lows in unemployment led to double-digit average wage growth over the last four years. But the recent downwards trend has left many wondering whether the Romanian economy will ever resume its previous rate of development.

Is the DNA’s aggressive prosecution scaring off foreign investors?

Bucharest’s economic slowdown is due to a variety of factors, from tightened global financial conditions to falling birth rates. Foreign investors, however, may also be skittish thanks to the long-running battle between Romania’s political establishment and its controversial anti-corruption agency, the National Anticorruption Directorate (DNA). Under the leadership of agency head Laura Kövesi, the DNA undertook (by its own count) 2,396 investigations targeting Romanian magistrates between 2014 and 2018. Kövesi’s tenure saw over 1,000 figures from the country’s political and business circles convicted for corruption.

The DNA’s swathes of indictments targeting Romania’s leading political figures, with charges ranging from forgery to money laundering, have certainly played into the country’s reputation for corruption. That image has hamstrung Romania’s ability to attract foreign capital and investment, from Europe and beyond.

EU leaders, meanwhile, have heaped praise on the DNA’s stack of convictions, holding the anti-corruption agency up as a model for other European countries to emulate. Concerns have mounted, however, that the DNA is abusing its power and reverting to communist-era investigative practice.

Long lists of convictions—but at what cost?

Hiding behind the DNA’s unusually-high conviction rates were potential due process violations, including lengthy pre-trial detainment periods equivalent to imprisonment before having been sentenced by a court of law, or otherwise threatening suspects that a lack of cooperation could see their family members prosecuted. Increased scrutiny of these violations may help explain why the number of cases resulting in acquittals rose markedly, from 12.2% in 2017 to 36.3% in 2018.

Some of the DNA’s most prominent targets have drawn parallels between its behaviour and that of Romania’s Communist-era security services. Alina Bica, who formerly served as chief prosecutor for organised crime and was arrested in 2014, described her experience with the DNA as “like in the 1950s when the communists came. You get called an enemy of the state, you get put in the truck…they damage your family.” Kövesi reportedly made a personal visit to the Supreme Council of Magistrates to persuade them to sign off on Bica’s arrest, while Bica’s husband was targeted with charges of tax evasion and her lawyer was also detained.

Many of those singled out by the DNA accuse the body of pursuing political or personal vendettas. Bica, for example, claimed the charges against her stemmed from her 2012 investigation into Transgaz, where Kövesi’s brother served as a director. PSD spokespeople have suggested treasurer Mircea Drăghici, currently under investigation for embezzling party funds, is being targeted as part of the lead-up to this month’s European elections.

Troubling collaboration with the intelligence services

Recent revelations about the DNA’s investigative tactics have given new life to comparisons between today’s anti-corruption czars and the communist-era Securitate secret police. Earlier this year, Romania’s Constitutional Court ruled secret protocols between DNA prosecutors and the country’s domestic intelligence agency, the SRI, were unconstitutional. The Constitutional Court concluded that the SRI, successor to the Securitate, had signed agreements allowing the intelligence agency to circumvent the authority of prosecutors in criminal investigations, while simultaneously conducting over 20,000 wiretaps a year on behalf of the DNA—an excessive violation of privacy.

The investigation by the Constitutional Court culminated in Kövesi’s removal from her position in 2018. Kövesi herself has been indicted on charges of corruption and abuse of office, relating to allegations by Romanian businessman Sebastian Ghita that Kövesi strongarmed him into paying for the repatriation of a fugitive from Indonesia. Romanian police claim they footed the bill, but criminal proceedings are ongoing. The former prosecutor nevertheless retains many fans in Brussels. Allies in the European Parliament want to name her to the new position of EU Chief Prosecutor despite the ongoing investigation in Romania.

Increased transparency

With the steady release of DNA documents to the newly formed Special Section for the Investigation of Crimes Committed by Magistrates and the National Union of Judges in Romania, which both operate independently of the DNA, efforts to increase transparency in Romanian governance may soon move beyond the bitter political rivalries that undermined Romania’s political stability and global reputation.

While the Sibiu summit was a political success, the economy is also regaining its footing. Consumer confidence is recovering, with better prospects for future savings. Wage growth remains impressive while lending activity continues to expand. And CFA Romania, an association of investment professionals, released a report predicting Romanian economic activity will improve over the next 12 months. It seems that, despite the corruption battles of the past several years, both Romanian businesses and consumers remain optimistic about their future prospects.

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Any signs of a chill between France and Germany?

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The past few months have seen many signs of growing friction and divisions between the two European superpowers, Germany and France. Before the February vote on changes to the EU Third Energy Package, meant to expand the European Commission’s power to regulate Europe’s electricity and natural gas market, France opposed, until the very last moment, Germany’s position on the issue. In April, Paris and Berlin failed to agree on how much more time Britain should be given to decide on its withdrawal from the EU. During the recent presidential elections in Ukraine, France and Germany supported various candidates. Moreover, they are equally divided on who will be the new head of the European Commission. What is happening in relations between members of the “European tandem”?

During the latter half of 2018, it looked as if relations between the EU’s two powerhouses were reaching a new strategic level. In a joint statement made in Meseberg in June, Berlin and Paris outlined their shared vision of the European Union’s future development. In late August, French President Emmanuel Macron and German Foreign Minister Heiko Maas simultaneously spoke out about a new role for Europe to make it “sovereign and strong.” During their informal meeting in Marseille in September, Emmanuel Macron and Angela Merkel agreed on a coordinated response to the main challenges facing Europe and on concerted work on shaping the “agenda for Europe.”

In November, the two leaders spoke in favor of creating a “European army,” “real Pan-European armed forces” capable of defending Europe. And in January of this year, they inked a broader cooperation accord in Aachen, which commentators described as a “new big step” in bringing the two countries closer together. The Treaty of Aachen covers new areas of political cooperation, including common projects and commitments in the fields of defense and international relations.

Just a month later, however, the Franco-German rapprochement hit a snag over two strategic projects worth billions of euros, namely the Nord Stream 2 gas pipeline and trade relations with the United States. Here the interests of Paris and Berlin differ the most. Underscoring the seriousness of the rift, Emmanuel Macron canceled a planned trip to a security conference in Munich in what many commentators described as a “demonstrative” move. As for the issue of completing the construction of the Nord Stream 2 gas pipeline, the compromise reached by France and Germany and approved by the European Parliament, imposed on Berlin “a formula that the German government wanted to avoid.”

Regarding the issue of trade relations with the United States, it wasn’t until mid-April that Brussels collectively managed to prevail over France, which had been blocking the start of pertinent negotiations with Washington.  Any delay may cost the German automakers multi-billion dollar fines from the United States. If the French succeed in delaying the start of negotiations, Germany, which is already experiencing a sharp slowdown in economic growth, may end up the loser again.

France’s sudden move left the German media guessing whether Macron’s actions were dictated by his displeasure about Berlin’s “slow response” to his initiatives, or by Donald Trump’s threat to sanction companies involved in the construction of the Nord Stream 2 pipeline, including the French concern Engie. Or maybe Macron had resorted to this “show of force” in a bid to strengthen his hand amid the conflict with the “yellow jackets” and growing tensions with Italy?

Indeed, the statement made in Meseberg and the treaty signed in Aachen could have proved too much of a compromise for Macron, if not a serious blow to his ambitions. According to critics, “the Treaty of Aachen dodges the most sensitive topics characteristic of modern Europe.” Including migration and political unification of Europe – something Macron is so eager to accomplish. The treaty makes no mention of a common EU tax and financial policy, while the issue of creating a single economic space is spelled out declaratively at best. Angela Merkel essentially emasculated virtually all of Macron’s initiatives pertaining to the financial and economic reform of the EU and the Eurozone. Emmanuel Macron has been out to become one of the EU’s leaders, or even its sole leader, ever since he became president in 2017. All the more so following Britain’s exit from the bloc and amid the ebbing political authority and the planned resignation by 2021 of German Chancellor Angela Merkel, once the informal leader of a united Europe.

The current political situation in France is also calling for more decisive actions by President Macron. To ensure at least a relative success in the upcoming European elections, he needs to enlist the support not only of the traditional left-and right-centrists, but possibly of some representatives of the new European right too. Whether or not Angela Merkel stands down in 2021, or after the elections to the European Parliament (as has been rumored since April), Emmanuel Macron essentially remains the only top-level proponent of greater European integration. (Unless Merkel ultimately moves to the head of the European Commission, of course). With Macron eyeing a second presidential term in 2022, the advancement of the modernization model for France depends directly on the success of the European project. And here any significant changes in the European Union “mainly depend on the position of France’s privileged partner – Germany.”

All this means that Macron needs a breakthrough now that Berlin is going through a “complicated power transit” with Merkel having resigned as the head of the CDU and preparing to hand her post as Federal Chancellor over to a successor. Therefore, she is now taking her time and, according to her successor as CDU leader, Annegret Kramp-Karrenbauer, is holding out for a new vector in the development of the European project as “the common denominator of the distribution of political forces after the elections.” Does this mean that Berlin’s is staking on the success of its candidate in the ongoing struggle for the next president of the European Commission? For the first time ever, the CDU and the CSU have managed to nominate a common candidate who has “good chances” of heading the EU’s executive body.

Meanwhile, Berlin is facing an intractable dilemma. Since 1949, “avoiding by all means situations necessitating a hard choice between France and the United States has been a key principle of German foreign policy.” This approach “survived all governments and coalitions, and was maintained after the reunification of Germany.” Under the present circumstances, however, remaining firmly committed to the transatlantic relationship threatens to further destabilize the European integration project, which is now seen as being key to Germany’s future. Simultaneously, a course aimed at minimizing damage from the policy of external powers that threatens the fundamental German interests might necessitate radical and ambitious geopolitical maneuvers that would almost inevitably revive the Europeans’ and Americans’ historical fears of “German instincts.”

US and British analysts already worry that “the

[geopolitical]

shackles that are voluntarily accepted [by Germany] can be thrown off.” They also wonder how long it will take before new generations of Germans want to restore their country’ full state sovereignty.

In Germany itself, promotion of such slogans have already given the Alternative for Germany party (AfD) the third largest fraction in the Bundestag. A major paradox of the current European and German policy is that Berlin’s activity or passivity is equally detrimental to the Pan-European project and could eventually lead to the EU’s fragmentation and even disintegration.

However, the Franco-German “tandem” is already being dogged with contradictions and compromises, which are highly unpopular among many in the German establishment. The cautious response by many EU members to the latest joint geopolitical initiatives of Berlin and Paris, gave Germany more reasons to fear that Macron’s global ambitions could exacerbate the differences that already exist in the EU. Many in Germany have long suspected Macron of wishing to make the EU instrumental in his foreign policy aspirations.

Some experts still believe that at the end of the day the current chill between Germany and France may turn out to be just a sign of the traditional “propensity for taking independent political decisions.” The sides are sizing each other up to see “who will be setting the rules of the roadmap in the future.”  Also, Paris’s tougher stance towards Berlin may be a tactical ploy, a pre-election maneuver to “hijack” part of the agenda from the “national populists” of Central, Eastern and Southern Europe where many people are not happy about the German “diktat.”

Emmanuel Macron has proved once and again his ability to ride the wave of public discontent with certain issues. His Plan for Europe, published in early March, carefully avoids any mention of France’ and Germany’s leading role in advancing EU reforms.

On the other hand, the foreign policy of the leading European powers has a long history, and long-term geopolitical considerations continue to play a significant role. Germany, for one, has traditionally been looking for a counterweight to the Anglo-Saxons, while France – to German dominance in Europe. As a result, the search by Paris and Berlin for common points of political contact is now turning into intense efforts to find the “lowest common denominator.” The overall impression is that we will only be able to see a greater deal of certainty in relations between the two countries after the results of elections to the European Parliament have been summed up.  The distribution of roles both within the “European tandem” and in the EU as a whole depends on which political forces – pro-Macron or pro-Merkel, the Europeans will vote for.

 First published in our partner International Affairs

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Sino-Italian Partnership and European Concern

Mohamad Zreik

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A crucial moment in modern European history is that the European doors opened to Chinese President Xi Jinping in Italy during a reception that is like receiving kings and leaders. Once again China is moving west despite all the American warnings from the Chinese dragon coming from the East, and this time it was Italy’s accession to the One Belt One Road initiative.

The Chinese president said that his country’s relationship with Italy is excellent and that the Sino-Italian common interests are the basis for a fruitful future. The Italian prime minister said that Italy is a key partner in the Belt and Road initiative and that trade between Italy and China should increase. But all this positive atmosphere is met with dissatisfaction and fear by the United States and some Italians, which is totally opposed to dealing with China because it considers it a threat to its national security and therefore to the national security of Italy.

In order to prevent espionage or transfer of experience by the Chinese, it was agreed to establish an oversight authority. In an expression of US rejection of the agreement, White House official Garrett Marquis wrote last week on Twitter that Rome “does not need” to join the “New Silk Road”. In an effort to ease US concerns, Luigi Di Maio said before taking part in an Italian-Chinese economic forum in Rome that the relationship will not go beyond trade, as we remain allies of the United States, and remain in NATO and the European Union.

The Italian economy, which is in a recession, is pushing the Italian government to form an alliance with China. Many European policy experts consider Italy to be a Trojan horse for China in the European region, which will have political implications for the future of the EU and the future of the Italian-American relationship; especially as the Chinese giant Huawei is expected to participate in the launch of the technology “G5” mobile phones in Italy.

China’s opening up is not limited to Italy, but to Europe as a whole. In the last visit by the Chinese president to Europe, he moved from Italy to Monaco and Paris and met President Emmanuel Macron, who is trying to open up to Beijing. German Chancellor Angela Merkel has opposed the Sino-Italian rapprochement with signing the agreement to join the Belt and Road Initiative, so that Italy will be the first G7 country to join the initiative.

Beijing is interested in investing in Italian ports, including the port of Trieste on the Adriatic, to boost its exports to Europe. Italy seeks to balance trade with China. According to official data, trade between the two countries grew by 9.2% compared to 2016, reaching 42 billion euros. Italy managed to cut its trade deficit with China by 1.37 billion euros, increasing exports to Beijing by 22.2%, while imports rose to 28.4 billion euros, an increase of 4% compared to 2016.

But the most important issue remains the weak Italian economy, which will survive under Chinese debt, and the Sri Lankan experience proves that China is dealing with countries with economic interests. So, will the European gateway withstand the Chinese economic giant, or will it be a Chinese economic and political region in the future?

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