Tag Archives: Italy

ECB’s Draghi on raising inflation in Europe: ‘We will do exactly that.’

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Italy’s Mario Draghi, the president of the European Central Bank, joined Stanley Fischer, the vice chair of the Federal Reserve, in an hour-long program at the Brookings Institution earlier today.European_Union

Draghi addressed at length both the ECB’s steps to confront deflation and the need for EU countries to enact bolder economic reforms in his remarks and in his discussion with Fischer, the former president of Israel’s central bank and a former professor at the University of Chicago who once taught Draghi.

Deflation as Europe’s chief economic threat

DSC00853Draghi stressed that he understands the biggest risk to European Union’s economic recovery is deflation. He noted that the ECB is transitioning from a more passive approach to a much more active ‘QE-style’ approach to the bank’s balance sheet — in part by moving last month to purchase private-sector bonds and asset-backed securities. Even if Draghi’s efforts still fall short of the kind of quantitative easing (e.g., outright asset purchases) that the Federal Reserve introduced to US monetary policy five years ago, Draghi committed himself to lifting the eurozone’s inflation from ‘its excessively low level’:

We will do exactly that.

It’s not exactly ‘whatever it takes,’ but it’s a sign that Draghi realizes the dangers that deflation presents, with the eurozone inflation rate falling to just 0.3%, the lowest level since the height of the eurozone’s existential sovereign debt crisis:

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Draghi has been one of the leading voices for a more active ECB approach to boosting inflation to 2% within the next two years, though Germany’s powerful central bank, the Bundesbank, and its president Jens Weidmann (also a member of the ECB’s 24-person governing council), remains skeptical of full-throated quantitative easing.  Continue reading ECB’s Draghi on raising inflation in Europe: ‘We will do exactly that.’

Tusk, Mogherini appointed to top European offices. What next?

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The European Council appointed Polish prime minister Donald Tusk as Council president and nominated Italian foreign minister Federica Mogherini as its new high representative for foreign affairs and security policy.Italy Flag IconEuropean_UnionPoland_Flag_Icon

The appointments of both Mogherini and Tusk were widely expected in the days and hours leading up to today’s EU summit.

Tusk (pictured above, left, with his predecessor, Herman Van Rompuy), age 57, was first elected prime minister in 2007 and reelected in 2011 as the leader of the center-right Platforma Obywatelska (PO, Civic Platform), each time defeating the more conservative, nationalist Prawo i Sprawiedliwość (PiS, Law and Justice). Essentially a moderate liberal and European federalist, Tusk has governed Poland for seven of the 10 years during which it’s been a member of the European Union. His elevation to the Council presidency marks the first time that a central or eastern European has held a top EU office, and it reflects Poland’s growing clout as one of the engines of the European Union.

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Mogherini (pictured above, right, with her predecessor, Baroness Catherine Ashton), age 41, only recently became Italy’s foreign minister in February, when prime minister Matteo Renzi maneuvered his way into the premiership. Though some Baltic and eastern European leaders doubted her level of experience and questioned whether she might be too sympathetic to Russia, she’s received strong marks in her six months as Italy’s foreign minister, marking her as a rising star in the new generation of leaders in Renzi’s center-left Partito Democratico (PD, Democratic Party).

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RELATED: Who is Federica Mogherini?

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Together with Jean-Claude Juncker, the former Luxembourg prime minister, who was nominated by the Council in June as the president of the European Commission, the EU’s chief executive and regulatory body, Tusk and Mogherini will be responsible for setting EU policy through 2019.

The Council presidency was created by the Treaty of Lisbon, which came into effect only in 2009. Before Lisbon, the Council president was simply the leader of the country that held the six-month rotating Council presidency. Van Rompuy, a former Belgian prime minister, served as the inaugural Council president. Upon the Council’s decision today, Tusk will begin his first term of 2.5 years in December, with the option for reappointment to a second term of 2.5 years.

The high representative role existed prior to the Lisbon Treaty, but it was greatly expanded when Ashton, a former Labour member of the House of Lords, was appointed to the role in 2009. Technically, Mogherini will serve as Italy’s representative on the European Commission and, accordingly, her term will run for five years and is  subject to the approval of the European parliament. 

Given their different backgrounds, Tusk and Mogherini were viewed as a complementary team. Eastern and central Europeans are delighted to see Tusk, a relatively hawkish voice on Russia, elevated to the Council presidency. Meanwhile, Mogherini brings gender diversity to the Commission, and she will join Martin Schulz, a German social democrat, as the chief voice of the center-left at the top of the EU policymaking apparatus.

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RELATED: Forecasting the EU power summit, part 1
Europe’s next high representative

RELATED: Forecasting the EU power summit, part 2
Europe’s next council president

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But what does it mean for the next five years of European policy? Continue reading Tusk, Mogherini appointed to top European offices. What next?

Forecasting the EU power summit, part 1: Europe’s next high representative

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With the European parliamentary elections finished on May 25, and the emergence of former Luxembourg prime minister Jean-Claude Juncker as the president of the European Council nearly a month later, the next two pieces of EU governance will be determined at a summit of all 28 leaders of the European Union on Saturday.European_Union

The EU leaders, who together comprise the membership of the European Council, will meet at a summit on August 30 that is expected to determine outgoing Council president Herman van Rompuy’s successor, an office created under the Treaty of Lisbon that went into effect in 2009. 

They are also expected to appoint a candidate to succeed Catherine Ashton as high representative for foreign affairs and security policy, as well as informally consider which European Commission will hold which portfolios, though those decisions are unlikely to be announced until later in the autumn. 

It’s easiest to think about the two offices sequentially — first high representative, then Council president. That’s because there are just two major candidates viewed as credible possibilities for the EU foreign policy role — Italian foreign minister Federica Mogherini and Polish foreign minister Radek Sikorski — with a third, dark-horse candidate in Kristalina Georgieva, an economist and Bulgaria’s current commissioner, responsible for humanitarian aid and international cooperation.

The choices for the European Council presidency will  follow from the choice of high representative, and from the decision to name Juncker, a center-right federalist from Western Europe, as Commission president. (More on the Council presidency will follow in part 2).

From the available public reports, Mogherini (pictured aboveappears to be the slight favorite for the role. Continue reading Forecasting the EU power summit, part 1: Europe’s next high representative

Despite Senate vote, Renzi’s reform push stalling in Italy

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If Rome wasn’t built in a day, it’s certainly proving that it won’t be reformed in a day, either. Italy Flag Icon

Nearing a half-year in office, the most ‘impressive’ accomplishment of Italy’s new prime minister Matteo Renzi is engineering the relatively anti-democratic putsch of his own party’s prime minister, Enrico Letta in February.

Renzi, the 39-year-old former mayor of Florence, gave Letta just 10 months to enact urgent reforms before he executed his takeover of the Italian government. Six months into his own premiership, Renzi has greater support than Letta ever had to shake up Italy’s ossified government. But Renzi nonetheless has surprisingly little to show for half a year in office, even as the country slipped this summer into, incredibly, a triple-dip recession. 

When he ushered himself into power, Renzi came to the office with a wish list of reforms, all of which he promised would be delivered before the summer: a new election law, labor market reforms, tax reform and changes to Italy’s sclerotic public administration. 

Renzi isn’t much closer to achieving any of those today than he was in the spring. He’s lucky to have won a key vote last week in the upper house of the Italian parliament, the Senato (Senate), to reduce that chamber’s powers, making it essentially an advisory body, giving Italy a unicameral parliamentary system in all but name. Renzi must still win a vote in the lower house, the Camera dei Deputati (Chamber of Deputies), where Renzi’s Partido Democratico (PD, Democratic Party) controls an absolute majority, as well as another final vote in the Senate before the reforms are put before voters in a referendum next year. Continue reading Despite Senate vote, Renzi’s reform push stalling in Italy

How Miro Cerar rose to the top of Slovenian politics in four weeks

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Slovenians on Sunday turned over their country’s government to Miro Cerar, a political neophyte that barely anyone outside (or even inside) Slovenia had ever heard of a year ago.slovenia

Cerar (pictured above), an attorney and law professor, and the son of an Olympic gymnast, formed the Stranka Mira Cerarja (SMC, Miro Cerar’s Party), barely a month ago. But that didn’t matter to Slovenians, and the SMC easily won the July 13 snap elections by a margin of 34.6% to 20.7% against the center-right center-right Slovenska demokratska stranka (SDS, Slovenian Democratic Party), whose leader, two-time prime minister Janez Janša, has been sentenced to two years in prison in relation to corruption charges. Cerar’s victory represents the strongest victory of any party in a Slovenian election since the return of Slovenian sovereignty in 1990.

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Sunday’s snap parliamentary elections follow the resignation two months ago of Alenka Bratušek, Slovenia’s first female prime minister, after just over a year in office. Bratušek’s center-left coalition government is the second government since Slovenia’s last elections in December 2011.

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RELATED: Bratušek, Slovenia’s first female prime minister, resigns

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Cerar will now likely command 36 seats in the 90-member, unicameral Državni zbor (National Assembly), forcing him to form a coalition government with any of a number of allies in a National Assembly that remains fragmented, despite the strength of Cerar’s  mandate.

Cerar’s success is in large part due to his novelty. He’s not tainted by the past six years of austerity or the past two decades of corruption that characterizes much of Slovenia’s political elite. He lies somewhat in the center or center-left of Slovenian politics, leaning right on the need for economic reform, but leaning left on the need for reconsidering some austerity-era policies that Cerar believes have harmed Slovenian growth. For example, he’s called into question several recent plans for privatizations, including the national telecommunications company and the corporation that run’s the national airport. Continue reading How Miro Cerar rose to the top of Slovenian politics in four weeks

As Italy assumes EU rotating presidency, Mogherini shines

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I spoke to the London bureau of Voice of Russia earlier today to share some thoughts about Federica Mogherini (pictured above with Russian president Vladimir Putin), Italy’s still-new foreign minister, and her role in shaping EU foreign policy:Italy Flag Icon

He says that her appointment did surprise some because of her youth and the fact that she has no real top-level ministerial experience. However, “Within Prime Minister Matteo Renzi’s Democratic Party, she’s established quite a reputation as a rising star, particularly with regard to foreign policy. Beyond Renzi’s efforts of shaking up Italian policy paralysis, it was making quite a statement to appoint a 41-year-old woman as the new foreign minister”…

I argued that Mogherini and Renzi, who has now eclipsed French president François Hollande as the leading figure of the European left, are aiming for a more assertive Italian foreign policy voice. Mogherini has held forth on African migration to the European Union, Iran’s nuclear program, and the ongoing troubles in the Middle East, problems that have a significant diplomatic role for Russia as well as Europe and the United States.

I noted that though Mogherini, who is in Ukraine and Russia this week for talks with officials, is slightly more hawkish with respect to EU sanctions against Russia than perhaps former prime minister Silvio Berlusconi or former German chancellor Gerhard Schröder, her top priority is maintaining a united EU foreign policy, especially nine days into Italy’s assumption of the EU six-month rotating presidency.

Italy has grown closer to Russia over the past two decades, and Putin and Berlusconi enjoyed a strong personal relationship that bolstered ties between the two countries. In many ways, that makes Mogherini, like German foreign minister Frank-Walter Steinmeier, is a great EU conduit to Russia:

“I think it’s better to say that she’s likely to take a unified line, depending on where other leaders in the EU stand. In many ways, I think Mogherini is a great conduit to help smooth EU talks with [Russian Foreign Minister] Lavrov and other Russian officials.”

Though Mogherini could be mentioned as a candidate to succeed Catherine Ashton as the EU high representative later this year, I noted that Mogherini’s performance, strong as it may be, will be one factor in a set of discussions among the 28 EU member-state leaders that will also consider which states get which portfolios within the European Commission and that will consider the new president of the European Council. But with one of the frontrunners, Poland’s hawkish foreign minister Radek Sikorski, in some trouble for impolitic comments about his country’s bilateral relationship with the United States, Mogherini could emerge as a more conciliatory and diplomatic choice.

Photo credit to RIA Novosti.

A detailed look at the European parliamentary election results (part 1)

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We now have most of the results from across Europe in the 28-state elections to elect all 751 members of the European Parliament.European_Union

At the European level,  the center-right, Christian democratic European People’s Party (EPP) emerged with about 25 more seats than the center-left, social democratic Party of European Socialists (PES).

That immediately gives former the EPP’s candidate for the presidency of the European Commission, former Luxembourgish prime minister Jean-Claude Juncker, a boost in his efforts to actually become the Commission president. But it’s still far from automatic, despite Juncker’s aggressive posture at a press conference Sunday evening:

“I feel fully entitled to become the next president of the European Commission,” Juncker, a former Luxembourg prime minister, told supporters late yesterday in Brussels after the release of preliminary results. Premier for 18 years until he was voted out of office in December, Juncker also gained recognition in his dual role as head of the group of euro-area finance ministers during the debt crisis.

Juncker (pictured above) still must to convince the European Council to propose him as Commission president, and he’ll still need to win over enough right-wing or center-left allies to win a majority vote in the European Parliament.

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RELATED: Here come the Spitzenkandidaten! But does anybody care?

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That process, which could feature a major battle between the European Council and the European Parliament, will unfold in the days, weeks and possibly months ahead.

But what do the results mean across Europe in each country? Here’s a look at how the European elections are reverberating across the continent.  Continue reading A detailed look at the European parliamentary election results (part 1)

Who is Federica Mogherini?

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When Matteo Renzi, the 39-year-old former Florence mayor, pushed Enrico Letta out of power in February, I questioned the timing of his decision and noted that it was an arguably anti-democratic electoral coup against a prime minister of his own party that could easily backfire on Renzi.Italy Flag Icon

But among the most eyebrow-raising choices was Renzi’s decision not to reappoint the internationally acclaimed Emma Bonino as foreign minister, allegedly against the wishes of Italian president Giorgio Napolitano.

A longtime leader of the Radicali Italiani (Italian Radicals), a group of reform-minded, good-government economic and social liberals, Bonino had a long career in Italian and international politics as an inaugural (and subsequent) member of the European Parliament,  international trade minister under center-left prime minister Romano Prodi, and European commissioner for health and consumer protection in the late 1990s. A longtime  international activist for human rights, Bonino surfaced briefly as a potential Italian presidential contender in May 2013, though the electors  ultimately decided to reappoint Napolitano.

Instead, Renzi appointed Federica Mogherini, a previously little-known international affairs expert and legislator in Renzi’s Partido Democratico (PD, Democratic Party).

Of course, youth need not prevent an official from becoming foreign minister (it hasn’t stopped Austria’s 27-year old foreign minister Sebastian Kurz). Nonetheless, it was a risk to replace such a renowned official like Bonino with an untested foreign minister like Mogherini (pictured above). Even before Bonino, the foreign ministry is a role that’s been held by some of Italy’s most senior politicians — Gianfranco Fini and Franco Frattini on the right, and Massimo D’Alema and Lamberto Dini on the left.

Mogherini, in her first trip abroad, was received by US secretary of state John Kerry yesterday, and she appeared briefly at the Brookings Institution today to share thoughts about European relations with Russia, Ukraine, North Africa and the Middle East.

Mogherini is impressive, even to those of us who regret that Bonino’s time as foreign minister was truncated to just 10 months. At her discussion at Brookings, she was more forthright and authoritative than one might expect from such an untested foreign minister.   Continue reading Who is Federica Mogherini?

No, Venice isn’t about to break away from the rest of Italy

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Though it was essentially nothing more than an online poll, the Venetian independence movement has now become an international headline, with first Italian media, then Russian media and now US publications asking whether Veneto will be the next region to succumb to separatist sentiment.Italy Flag Iconveneto

Although the online plebiscite is raising more publicity than its promoters could have possibly hoped, it’s still just an unofficial, Internet-based poll. So when you see headlines that scream that 89% of Venetians are voting for independence from mainland Italy, keep in mind that it’s more a stunt than an actual referendum.

Plebiscite 2013, a Venetist group, conducted the referendum between March 16 and 21, and it claims that 2.36 million Venetians voted in the online poll for full independence from Italy, fully 89.1% of the voters who participated. There are good reasons to doubt whether those numbers are accurate — Il Corriere del Veneto today reports that, following an analysis of the web traffic data, the real total is something more like 135,000, and among those voters, there are more votes from Chile than from Padua, one of the region’s largest cities. While you should take the Venetist movement increasingly seriously, the March online poll is not the most credible evidence. Continue reading No, Venice isn’t about to break away from the rest of Italy

Did Renzi make a mistake in taking power too soon?

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I argue this morning in EurActiv that the mistakes of Italy’s new prime minister Matteo Renzi in the past two weeks alone mean that we should be very skeptical about the chances that he can unlock the puzzle of reforming Italy’s economy and regulatory structure — and especially on a timeline that expects to enact major reforms before voting for the European parliamentary elections:

But for a politician whose brand is based on breaking with Italy’s past, his rise to power represents a very familiar path.  The putsch to oust Letta, executed behind closed doors, is reminiscent of many government reboots of Italy’s past.  Renzi, moreover, hopes to hold power until 2018, giving him four years in office without seeking the mandate of a popular vote.  That’s more ‘politics as usual’ than rupture.  Over the weekend, a planned meeting between Renzi and Beppe Grillo, the leader of the protest Five-Star Movement devolved into a clownish shouting match.  Though the blame rests more with the mercurial Grillo than with Renzi, the Five-Star constituency includes the kind of voters that Renzi must win in order to truly transform Italy’s economy.

I also question whether Renzi’s choices for his new cabinet are entirely wise:

For someone who’s been plotting a move to Palazzo Chigi for two years, Renzi’s cabinet is far from inspiring.  In light of the male-dominated nature of Italian politics and business, it’s promising that Renzi’s 16-member cabinet contains an equal number of men and women.  While the idea was to select a cabinet of young, energetic ministers, the cabinet doesn’t have the feel of an all-star assembly.

Renzi’s finance and economy minister, Pier Carlo Padoan, since 2007 the deputy secretary general of the OECD, has a strong pedigree as an economist, advising Italy’s center-left governments in the late 1990s and early 2000s on the requisite reforms to bring Italy into shape to join the eurozone.  But he falls into the same line of technocratic experts as his immediate predecessors, Fabrizio Saccomanni, Vittorio Grilli and Monti.

Renzi ignominiously dumped Letta’s foreign minister Emma Bonino, a longtime champion of women’s rights abroad and good government at home for the 40-year-old Federica Mogherini, first elected to the Italian parliament in 2008 and who has never held a ministerial post.

Renzi ‘s cabinet also excludes Cécile Kyenge, Letta’s minister for integration.  Letta demonstrated significant courage in appointing Kyenge, Italy’s first black minister.  Though racist slurs against Kyenge often drew negative headlines, her appointment inaugurated an overdue conversation about racism in Italy, especially as it regards integration and immigration, Kyenge’s portfolio.  Dumping Kyenge hardly seems like bold leadership.

Though Angelino Alfano remains interior minister, Renzi stripped Alfano of his title as deputy prime minister, and he cut all but two other members of Alfano’s New Center-Right (NCD) from the cabinet.  Those decisions may haunt Renzi when things get tough in the Italian Senate, where the Democratic Party lacks a majority.

Renzi brings down Letta government, expected to become PM

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Just two months into his leadership of Italy’s main center-left party, the Partito Democratico (PD, Democratic Party), Florence mayor Matteo Renzi has found a way to balance his criticism of prime minister Enrico Letta’s government against the notion that he’s working against Letta, a former deputy leader of his own party.Italy Flag Icon

He’s decided that it will simply be easier to lead Italy’s government himself — and the past four saves have played out dramatically as Renzi engineered the collapse of Letta’s government.

Initially, Renzi’s gambit looks like it’s going to work.  The Democratic Party national leadership backed Renzi’s plan almost unanimously after a meeting earlier Thursday, where Renzi argued that the party must ‘uscire dalla palude‘ (‘get out of the swamp’) to effect change in Italy.

Letta will resign as prime minister tomorrow.

As a formal matter, Italian president Giorgio Napolitano will consult with the leaders of all of Italy’s political parties about forming a new government, but the outcome seems almost certain.  Renzi, at age 39, will become the youngest prime minister in Italian history, taking over essentially where Letta leaves off.

It’s an audacious and skilled move. It’s one part Giulio Andreotti (note Renzi’s mastery of internal PD politics).  It’s one part Silvio Berlusconi (note Renzi’s mastery of the kind of political theater it takes to wage a successful campaign against your own party’s government).  It’s also one part Michael Corelone — Renzi showed this week he has the ruthlessness to pull the trigger when it counts.  (Can you imagine what British policy might look like today if former foreign minister David Miliband had the same instincts five years ago?)

Renzi expects to form a government that includes the Democratic Party, the centrist Scelta Civica (SC, Civic Choice), a group of reform-minded moderates that supported former prime minister Mario Monti, and the Nuovo Centrodestra (NCD, the ‘New Center-Right’), a breakaway faction from former prime minister Silvio Berlusconi’s rechristened Forza Italia.  That’s the same coalition that Letta led, with the same strengths and shortcomings.

Renzi says he’ll seek a government through the end of the current parliamentary term, which ends in 2018.   Continue reading Renzi brings down Letta government, expected to become PM

Renzi, Berlusconi team up for electoral law pact

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Italian politics just got a lot more complicated.Italy Flag Icon

Over the weekend, former prime minister Silvio Berlusconi, the leader of Italy’s largest center-right party, Forza Italia, and Matteo Renzi, the leader of Italy’s largest center-left party, the Partito Democratico (PD, Democratic Party), joined forces (pictured above) to introduce the blueprint for a new electoral law.

Notably, the deal didn’t include input from prime minister Enrico Letta, a moderate who leads a fragile ‘grand coalition’ government that includes not just his own Democratic Party, but centrists close to former technocratic prime minister Mario Monti and one of Italy’s two main center-right blocs, the Nuovo Centrodestra (NCD, the ‘New Center-Right’), led by deputy prime minister and interior minister Angelino Alfano.  The Alfano bloc split two months ago from Berlusconi’s newly rechristened Forza Italia, which pulled its support from the Letta government at the same time.

The deal is a political masterstroke by Renzi because it makes him appear to have stolen the initiative from Italy’s prime minister.  Letta formed a government in May 2013 with the two priority goals of passing a new election law and deeper economic reforms.  Despite a ruling in December 2013 that Italy’s current elections law is unconstitutional, Letta’s government has not yet put forward an alternative acceptable to the three main groups in the coalition.  So the Renzi-Berlusconi deal is now the only concrete proposal — it backs up the talk that Renzi, the 39-year-old Florence mayor, will be a man of action in Italian politics.  Renzi won the party’s leadership in a contest in November 2013 over token opposition.  Renzi is neither a minister in Letta’s cabinet nor a member of the Italian parliament, and he’s been more of a critic of the current government than a supporter of a prime minister who until recently was the deputy leader of Renzi’s own party.

By way of background (those familiar can skip the following three paragraphs):

Italy has gone through a few different electoral systems, but most of them have featured either closed-list or only partially open-list proportional representation.  Reforms in 1991 and 1993 transformed the previous system in what’s informally been called Italy’s first republic, which spanned the postwar period until the collapse of the dominant Democrazia Cristiana (DC, Christian Democracy) in a series of bribery and corruption scandals collectively known as Tangentopoli (‘Bribesville’).  But the current system dates to 2005, when Berlusconi ushered in a new law that everyone (including Roberto Calderoli, who introduced the 2005 legislation) now agrees is awful and which Italy’s Corte costituzionale has now invalidated.

The current law, which governed Italy’s elections in 2006, 2008 and 2013, provides for a national proportional representation system to determine the 630 members of the lower house, the Camera die Deputati (Chamber of Deputies).  The party (or coalition) that wins the greatest number of votes nationwide wins a ‘bonus’ that gives it control of 55% of the lower house’s seats, not unlike the Greek electoral system.  But the 315 members of the upper house, the Senato (Senate), are determined on a regional PR basis — the top party/coalition in each of Italy’s 20 regions wins 55% of the region’s seats.  That means, however, that one party/coalition can hold a majority in the lower house, but wield much less than a majority in the upper house.

That’s the exact situation in which Italy found itself after the February 2013 elections, when the Democratic Party and its allies in the centrosinistra (center-left) coalition narrowly edged out Berlusconi’s centrodestra (center-right) coalition.  Beppe Grillo’s protest Movimento 5 Stelle (M5S, the Five Star Movement) followed closely behind in third place.  It meant that while the Italian left controlled the Chamber of Deputies, it couldn’t muster a majority in the Senate.  After a three-month political crisis that ended with the inability to elect a new Italian president (Italy’s parliament ultimately decided to reelect the 88-year-old Giorgio Napolitano to an unprecedented second seven-year term), the Democratic Party’s leader Pier Luigi Bersani resigned, and Napolitano invited Letta to form Italy’s current government.

The Renzi-Berlusconi deal sketches out an electoral reform on roughly the following lines:

  • The Chamber of Deputies would become, by far, the predominant chamber of Italian lawmaking.  The Senate would hold fewer powers as a region-based chamber.  Italy’s national government would also consolidate more powers away from Italy’s regions.
  • Deputies would be elected, as they are now, on the basis of national, closed-list proportional representation, which concentrates power in the hands of party leaders and elites (as opposed to open-list, which would allow voters to choose the members that represent them in parliament).  An alternative might be something akin to the proportional aspect of the Spanish electoral system — in Italy, it would mean a proportional system divided into 118 constituencies, each of which elects four or five deputies.
  • If a party/coalition wins over 35% of the vote, it will still yield a ‘majority bonus’ of either 53% or 54% of the seats in the Chamber of Deputies.  If no party/coalition wins over 35%,  the top two parties/coalitions will hold a runoff to determine who wins the majority bonus.
  • Italy would introduce a threshold for parties in order to reduce the fragmentation of Italy’s politics — a party running outside a coalition would need to win 8% of the vote and a party running inside a coalition would need to win 4% or 5% of the vote running outside a coalition (though the thresholds would be much lower in a multi-district ‘semi-Spanish’ system).
  • The deal would not replicate the French system, which elects legislators to single-member districts in a two-round election, and which has been discussed often as an alternative for Italy.

The details are not so important at this stage, because they could change as the Renzi-Berlusconi deal begins the long process of turning into legislation.  But if Renzi can pull the majority of the Democratic Party along, and if Berlusconi’s Forza Italia supports the deal, the two groups could steamroll Italy’s smaller parties, even in the Senate.  If Alfano and his bloc joins, the deal would be unstoppable.  Renzi has already won a majority of the party’s executive committee (a promising first sign), and Alfano has indicated that he’s open to the reform (though less excited about closed lists).

But there are all sorts of fallout effects — politically, legally and electorally — to contemplate over the coming days and weeks. Continue reading Renzi, Berlusconi team up for electoral law pact

In dismissing Fassina, Italy’s Renzi marks his ‘Sister Souljah’ moment

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In US politics, the ‘Sister Souljah’ moment dates from the 1992 presidential campaign when Bill Clinton, then the young governor of Arkansas, repudiated the words of a prominent hip-hop emcee and activist (Sister Souljah) by comparing her words to those of prominent white supremacist David Duke.  In scolding her, Clinton distanced himself from African-American civil rights activist and former presidential candidate Jesse Jackson, thereby signaling his willingness to stand up to Jackson and the various interest groups that then dominated the Democratic Party.  Italy Flag Icon

Since 1992 the moniker has been applied to any situation where a politician rebukes extreme statements or views most associated with that politician’s own political party or identity.

So it was in Italy last week when the new leader of Italy’s center-left Partito Democratico (PD, Democratic Party), Florence mayor Matteo Renzi caused a rift on the Italian left that precipitated the resignation of deputy finance minister Stefano Fassina from Italy’s beleaguered coalition government.

Fassina resigned after Renzi dismissed his calls for a cabinet reshuffle.  When asked about Fassina’s proposal by the press, a swaggering Renzi responded with a simple, ‘Chi?’ (Who?).  It was a stark reminder that Renzi intends to drag Italy’s main leftist party to more centrist ground in the same way that Clinton pulled the Democrats to the middle in the 1990s and that Tony Blair pulled the Labour Party in the United Kingdom.

It’s a calculated bet, not without some risk, that Renzi can slap down his leftist flank (presumably expanding his appeal to moderate voters) without alienating the left so much that he causes the Democratic Party to crumble.

Fassina represents the socialist-left wing of the Democratic Party that Renzi now leads, after winning the leadership contest in December 2013 against token opposition with 68% of the vote.  Renzi’s coronation, however, obscures the real fissures within the Democratic Party.  In the contest to determine the prime ministerial candidate of the Italian centrosinistra (center-left) in November 2012, former PD leader Pier Luigi Bersani bested Renzi in December 2012 by a whopping margin of 61.1% to 38.8%.

Fassina, as a member of the current grand coalition government headed by prime minster Enrico Letta,  has been incredibly skeptical of spending cuts and other forms of budget austerity.  Fassina is the most well-known of a small group of rising leftists known as the Giovani Turchi (‘Young Turks’) within the party that want to pull it further to the social democratic left, a group that also includes Matteo Orfini and environmental minister Andrea Orlando.  That’s not necessarily a bad space to occupy in Italian politics — it’s a tradition that pulls both from the humanism of the historical Italian left and the Catholic social teaching of the historical Italian right.

But the Young Turks are just one of many factions that comprise the Democratic Party, which itself represents a two-decade struggle to redefine the Italian left — the party is now comprised of over a dozen fiefdoms, including the so-called ‘renziani‘ who support the Florence mayor.   Continue reading In dismissing Fassina, Italy’s Renzi marks his ‘Sister Souljah’ moment

14 potential game-changers for world politics in 2014

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Though I rang in the new year with a list of 14 world elections to watch in the coming year (and 14 more honorable mentions to keep an eye on), I wanted to showcase a few more thoughts about what to watch for in world politics and foreign affairs in 2014.

Accordingly, here are 14 possible game-changers — they’re not predictions per se, but neither are they as far-fetched as they might seem.  No one can say with certainty that they will come to pass in 2014.  Instead, consider these something between rote predictions (e.g., that violence in Iraq is getting worse) and outrageous fat-tail risks (e.g., the impending breakup of the United States).

There’s an old album of small pieces conducted by the late English conductor Sir Thomas Beecham, a delightfully playful album entitled Lollipops that contains some of the old master’s favorite, most lively short pieces.

Think of these as Suffragio‘s 14 world politics lollipops to watch in 2014.

We start in France… Continue reading 14 potential game-changers for world politics in 2014

Rise of new Italian political leadership eclipses Berlusconi’s expulsion from the Senate

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There’s not much to say about the decision of Italy’s upper house of parliament, the Senato (Senate), to expel former prime minister Silvio Berlusconi last week.Italy Flag Icon

Berlusconi, convicted on a tax fraud charge related to his media company, faces a year of community service and future legal troubles, most notably over charges of soliciting sex from underage prostitutes.

But the fallout from Berlusconi’s most recent political fall dropped long before his expulsion, as a new generation of Italian political leadership has increasingly taken center-stage in Italian politics.

The first sign was the decision among the center-right ministers in the current ‘grand coalition’ government headed by center-left prime minister Enrico Letta to push back against Berlusconi’s September attempt to bring down the government through a vote of no confidence.  Ostensibly, Berlusconi was registering disapproval over the rise of Italy’s VAT from 21% to 22%, but he certainly must have hoped that he could marshal the center-right’s unity to bring down the Letta government, thereby bringing about new elections before the Senate even had a chance to expel him.  Despite initially supporting Berlusconi (who has never served as a minister in the Letta government), deputy prime minister Angelino Alfano and the other ministers gradually pulled away from Berlusconi’s position.  By the time that the Italian parliament voted, Berlusconi himself had resigned to supporting Letta’s government.

The second sign was the formal rupture in mid-November of the party formerly known as Il Popolo della Libertà (PdL, People of Freedom).  When Berlusconi tried to rechristen the party under the name of his initial 1994 party, Forza Italia, Alfano and the other moderates within the party pulled out of Forza Italia to form their own bloc, the Nuovo Centrodestra (New Center-Right).  The split meant that Alfano and his allies would continue to support the coalition government and that Berlusconi and his shrinking core of allies would pull their support from the coalition government — it’s a mutually convenient arrangement for both Berlusconi and Alfano, who remain united over their opposition to Berlusconi’s eviction last week and who would still run together under the same broad centrodestra (center-right) umbrella in the event of a new election.  Alfano can play the role of a statesman, and Berlusconi, free from the burdens of government (if not free from the demands of criminal liability) will be able to attack Letta and the center-left without abandon.

For his part, Letta will call a new no-confidence vote on December 11 in the wake of the center-right split, asserting control over his government in the post-Berlusconi era, giving Letta a new chance to deliver on the two major issues that his coalition was designed to address — fiscal reforms to make the Italian economy more competitive and election reforms to fix a helter-skelter system that’s partly responsible for the inertia of Italian government.

Compared to those two efforts, the formal vote to kick Berlusconi out of the Senate was a relatively minor affair.

Berlusconi supplanted Alfano, a former minister of justice and Berlusconi’s one-time protégé, to lead the center-right in the election campaign earlier this year.  Berlusconi’s shrewd success showcased his residual appeal to Italian voters — Berlusconi powered the centrodestra from a huge deficit to coming within 0.4% of defeating the centrosinistra (center-left) coalition.  It’s now a cliché to say that it’s never wise to count Berlusconi out, due not just to Berlusconi’s two decades at the center of Italian politics and power, but also to his wealth and ability to shape opinion through the ownership of much of Italy’s private media.

Polls showed an uptick in Berlusconi’s popularity in the wake of the Senate’s decision, and a December 2 Tecnè poll found that his new Forza Italia still wins about 22% of Italian voters — that’s just around 1% less than Beppe Grillo’s protest Movimento 5 Stelle (M5S, the Five Star Movement) and around 4% less than Italy’s main center-left party, the Partido Democratico (PD, Democratic Party).  While Alfano’s New Center-Right wins just 6.9% of the vote, the centrodestra would win around 36% of the vote if an election were held tomorrow to just 31% for the centrosinistra.

‘Aha!,’ say Berlusconi watchers — even at his weakest point, he’s still driving Italian politics.

But it seems more likely today than ever that Berlusconi will never again be Italy’s prime minister.  Continue reading Rise of new Italian political leadership eclipses Berlusconi’s expulsion from the Senate