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Italy

Where Italy goes from today’s elections: a look at four potential outcomes

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pierluigi

Although we still don’t know exactly how the results of the weekend’s Italian election will turn out entirely, we know enough to say that Italy’s short-term future will be beset with gridlock.Italy Flag Icon

We know that, unless there’s a major change among the final results (very unlikely at this point, but still a possibility — La Repubblica‘s latest count shows a 0.4% gap between the two major coalitions), Pier Luigi Bersani will have led his broad centrosinistra (center-left) coalition to a victory in Italy’s lower house, the 630-member Camera dei Deputati (House of Deputies).  That’s because the national vote winner of the lower house elections automatically wins at least a 54% majority of the seats in the lower house.

We know that, whatever the final result, both Bersani’s centrosinistra coalition and the centrodestra (center-right) coalition led by former prime minister Silvio Berlusconi will each hold between 110 and 120 seats or so in Italy’s upper house, the Senato, which is composed of 315 elected members and, currently, four additional ‘senators for life.’ (That’s because the majority ‘seat bonus’ is awarded to the winner of each regional vote rather than on a national basis like in the Camera dei Deputati).

It doesn’t really matter who holds the greatest number of senatorial seats, because no group or party will control enough seats in the Senato alone to form a majority government, including Bersani’s coalition.

So given Bersani’s lead in the lower house, whatever government emerges — if a government emerges — will have to include Bersani’s center-left bloc, with presumably Bersani heading the government as prime minister.  In the short term, that puts Bersani in the driver’s seat but not, perhaps, for long.

None of Bersani’s options, frankly, are very stable, for either his center-left coalition or for Italy.

Given the ongoing eurozone sovereign debt crisis, the pressure will be on Bersani and on the entirety of Italy’s political elite, which now must be said to include Beppe Grillo and the leaders of the Movimento 5 Stelle (the Five Star Movement).  Right now, Italy’s 10-year bond rate is 4.49%, much lower than the 7%-and-higher rates that led to the downfall of Berlusconi’s government in November 2011.  But that could change — and fast — if Italy’s political leadership seems unable to form a government.  Grillo and his allies are now stakeholders in ensuring that Italy doesn’t unravel.

If Bersani succeeds in forming a government at all, it will be less stable than any government in Italy’s so-called ‘second republic’ — i.e., the period from the early 1990s to the present that’s been characterized by the downfall of the former Christian Democrats during the 1992 Tangentopoli (‘bribesville’) scandal that implicated virtually all of Italy’s political elite, the emergence in 1994 of Silvio Berlusconi as the head of the mainstream Italian right, and the increasing consolidation of the mainstream Italian left through what’s now become the Partito Democratico (PD, Democratic Party).

Any Bersani-led government, at this point, will not only be less stable than Berlusconi’s governments, but even less stable than the four notoriously rocky governments of Italian prime ministers Romano Prodi, Massimo D’Alema and Giuliano Amato from 1996 to 2001 and Prodi’s short-lived and troubled return to government from 2006 to 2008.

In light of that bleak background, here are the four potential outcomes over the coming days that you should watch for:

Continue reading Where Italy goes from today’s elections: a look at four potential outcomes →

Italy

Making sense of today’s Italian election results

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beppe

UPDATE, 7:30 p.m.: Here’s an additional piece on where Italy goes from here — a look at four potential outcomes to watch for in the days ahead.

* * * * *

The election results from Italy’s general election have largely been counted, and they’re backing up the exit polls (not the initial instant polls from the preceding hours leading up to the election) that show a hung parliament — leaving the short-term future of Italy’s government unclear.Italy Flag Icon

Right now, it certainly looks like Pier Luigi Bersani’s centrosinistra (center-left) coalition will win a majority in the elections for Camera dei Deputati (House of Deputies), Italy’s lower house, while former prime minister Silvio Berlusconi’s centrodestra (center-right) coalition will win a majority in the elections for Italy’s upper house, the Senato (Senate).

Nonetheless, the big winner is the Movimento 5 Stelle (M5S, the Five Star Movement), the protest group of blogger and comedian Beppe Grillo (pictured above), which has significantly outperformed polling expectations and may well become the single largest ‘party’ in the Italian parliament.

Bersani leads in Italy’s lower house

In the 630-member lower house, the latest projections show Bersani’s centrosinistra with a small lead of around 29% or 30% to just 28% or 29% for the centrodestra, and a whopping 25% or 26% for the Five Star Movement.  Far behind in fourth place is prime minister Mario Monti’s centrist coalition with around 11%.  The communist, green, anti-corruption Rivoluzione Civile (RC, Civil Revolution) headed by antimafia magistrate Antonio Ingroia has won barely over 2%.

If that result holds, it means Bersani will command an automatic majority in the lower house — the winner of the largest share of the votes wins 54% of the seats in the Camera dei Deputati, so Bersani is likely to hold 340 seats.

Berlusconi leads in Italy’s upper house

In the Senato, however, seats are awarded proportionally on a regional basis, with a regional ‘bonus’ — the winner of the largest share of the votes in each region automatically wins 55% of the seats in that region.

It’s too soon to tell whether Bersani or Berlusconi will win the greater number of votes nationally in the senatorial elections, but it’s likely that Berlusconi may emerge with the greatest number of the 315 seats up for election today (though far short of a majority) — the latest projections show the centrodestra with 114 seats, the centrosinistra with 113 seats, the Five Star Movement with 57 and Monti’s coalition with 17.

Berlusconi wins Piedmont, sweeps southern Italy in senatorial elections

When you look at the results region-by-region, you begin to see just how amazing the comeback has been for Berlusconi.

Right now, it appears that Berlusconi’s coalition has not only won Piedmont and Veneto in northern Italy, but also Lombardy, Italy’s most-populous region, by what appears to be a whopping 38.0% to 29.5% victory.  That doesn’t bode well for the centrosinistra in regional elections in Lombardy, where the centrodestra is trying to hold onto power under its candidate for regional president, Roberto Maroni, since 2012 the national leader of the Lega Nord (Northern League).  Maroni faces a tough challenge from the leftist candidate, Umberto Ambrosoli.  Exit polls showed a very close regional race. 

In southern Italy, where the centrosinistra was hoping to break through with a credible chance at sweeping the south, Berlusconi’s coalition has apparently won each region, excepting Basilicata.  That includes Campania and Sicily, Italy’s third- and fourth-most populous regions, respectively.  Berlusconi leads 37.2% to 29.1% in Campania and by 33.2% to 27% in Sicily (where Grillo’s Five Star Movement, not typically strong in the south, won 29.5%).  It also includes Puglia, the home of twice-elected regional president Nichi Vendola, the leader of the socialist Sinistra Ecologia Libertà (SEL, Left Ecology Freedom) that is part of Bersani’s coalition.  Although SEL won nearly 7% in Puglia, its best result nationwide, it wasn’t enough to power the centrosinistra to victory, where it was trailing with 28.3% to the centrodestra‘s 34.5%.

Grillo is the biggest winner, Monti the biggest loser

All in all, the result is a victory for Grillo — his movement outpolled Berlusconi’s party (though not his broader coalition), the Popolo della Libertà (PdL, People of Freedom) and it’s still too soon to tell, but there’s a chance the Five Star Movement outpolled Bersani’s party, the Partito Democratico (PD, Democratic Party) as well.

Going down the list of senatorial results, it looks like the Five Star Movement outpolled both the PD and the PdL in Veneto in the northeast, Liguria in the northwest, Marche, Abruzzo and Molise in the center of Italy, and Sicily and Sardinia as well, with Grillo’s movement winning around 30% in some of his strongest regions.

Monti, by contrast, appears to have finished in fourth place — and a far-off fourth place — in every region.  Despite his alliance with the Christian Democrats — long-dominant in Italy’s south — Monti polled worst in Italy’s south, and did best (winning double digits of up to 12%) in the northern industrial regions like Piedmont, Lombardy, Friuli and Veneto.

That means that, even if they could find a way to build a coalition, Monti and Bersani are unlikely to have sufficient strength in Italy’s upper house to form a coalition.

Other winners and losers Continue reading Making sense of today’s Italian election results →

Calabria, Campania, Italy, Puglia, Sicily

The role of Italy’s south in this weekend’s election

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napoli

Although Lombardy in Italy’s north has been called the ‘Ohio’ of Italian politics — it’s a huge prize, given that it’s the most populous and richest region, and one of the few regions currently too close to call — Sicily might well be the ‘Florida’ of Italian politics.Italy Flag Icon

It’s the fourth-most populous region of Italy, after Lombardy, Lazio and Campania, and with 27 seats in the Senato (Senate), it’s quite a prize.  Like Lombardy, Sicily is essentially a toss-up in this weekend’s Italian general election.  Voting is underway today and will continue throughout Monday.

In addition to Sicily, the election remains close in three additional southern regions, in Campania (29 seats), Puglia (20 seats) and Calabria (10 seats) — polls, as of mid-February, showed the centrosinistra (center-left) coalition headed by Pier Luigi Bersani with a very narrow lead.  Taken together, the four regions boast 86 seats, representing more than half the seats Bersani will need to form a senatorial majority — a far larger prize than even Lombardy’s 49 seats.

Taken together, the four regions are Italy’s poorest, nearly one-half as wealthy as Lombardy, and plagued by widespread unemployment, even before the latest European financial crisis — the four regions receive funds from the European Regional Development Fund to stimulate economic growth and modernize their economies.  Since Italian unification in 1865, southern Italy never fully integrated into the rest of Italy, and governments for the past century have tried to develop plans to bring southern Italy’s economy up to a level more commensurate with northern and central Italy.

In addition to their economic and cultural gap with the rest of Italy, the regions are hampered by their links to organized crime — the Mafia / Cosa Nostra in Sicily, the Camorra in Campania, the ‘Ndrangheta in Calabria and, to a lesser degree, Sacra Corona Unita in Puglia. That, in turn, has led to greater amounts of political corruption, cresting in 1992 with the murders of anti-mafia magistrates Giovanni Falcone and Paolo Borsellino.

Despite the south’s central role in the election, there’s not much indication that any government would necessarily do much for the south, especially in an era of budget cuts.

All four regions typically favor the center-right in Italian politics — former prime minister Silvio Berlusconi’s centrodestra (center-right) coalition won all four regions in 2008 and even in the 2006 elections, when center-left prime minister Romano Prodi returned to power, his coalition lost both Sicily and Puglia.  Despite the strength of the autonomist Lega Nord (Northern League) in northern regions, such as Veneto and Lombardy, there’s not much of a counterpart in the mezzogiorno.  To the extent there’s a separate ‘southernist’ autonomist movement in the southern regions, it’s split among a group of shifting regional parties that routinely aligned with the centrodestra, and that continues to be the case in this election — a patchwork of southern parties, Grande Sud (Great South), has joined Berlusconi’s coalition, making them, oddly enough, electoral allies of the Northern League.

The winner in each region is important under Italy’s election rules — in each region, the party or coalition that wins the greatest number of votes is guaranteed 55% of the senatorial seats from that region.  So in a highly fragmented election like the 2013 elections, Bersani’s centrosinistra coalition could win 30% of the vote and still take 55% of the seats in a given region.

In the Italian parliament’s lower house, the winner of the national vote is guaranteed 54% of all seats, and polls show that Bersani is very likely to win the national vote.  In contrast, however, the regional rules for the upper house mean that he’s far from guaranteed a majority in the Senato, and so may be forced to form a government with prime minister Mario Monti’s pro-reform centrist coalition.

In this weekend’s election, however, the left has hope that if it can sweep Lombardy and the key southern regions, it will have a shot at winning a clear senatorial majority: Continue reading The role of Italy’s south in this weekend’s election →

Italy

What will Italy’s election mean for LGBT rights?

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romapride

Last weekend, Nichi Vendola, the openly gay regional president of Puglia, pluckily posted to Twitter a photo of himself campaigning alongside Pier Luigi Bersani, the leader of the center-left Partito Democratico (PD, Democratic Party), captioned ‘coppia di fatto‘ (‘de facto couple’).

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Vendola, the leader of the more stridently leftist Sinistra Ecologia Libertà (SEL, Left Ecology Freedom), is part of the broad centrosinistra (center-left) coalition that hopes to elect Bersani as Italy’s next prime minister this weekend, and the pun subtly reinforced the role that gay rights has played in Italy’s election campaign.

The subtlety speaks a lot to how the issue of gay rights and same-sex marriage has hummed along the surface of a campaign that’s been almost entirely fought over economic policy — he state of Italy’s finances, economic reforms, budget austerity and the encroaching control of Brussels and Berlin on Italian governance.  Nonetheless, the gay rights issue is probably the most important social issue as the election approaches.

Given that Rome, Italy’s capital, is also home to the Vatican, gay rights is also one of the most polarizing issues of Italian public life.

nichi

Vendola (pictured above) is perhaps the most vigorous advocate of gay rights and same-sex marriage in Italy, but the progress elsewhere in Europe has also underscored Italy’s lack of progress on gay rights.

With parliaments in two of Europe’s four most-populous countries — the United Kingdom and France — passing legislation that allows for same-sex marriage in the past month, there’s some pressure on Italy to follow suit.  Italy also lacks any anti-discrimination laws or hate crime laws designed to prevent crimes with a particularly anti-gay bias.  Although southern Europe isn’t traditionally as socially liberal as northern Europe, both Spain and Portugal have promulgated full same-same marriage rights — Spain did so eight years ago.

Continue reading What will Italy’s election mean for LGBT rights? →

Italy

What kind of Italian prime minister would Angelino Alfano make?

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alfanopremier

Due to electoral law considerations, Italy hasn’t seen any new election polls in 12 days, but when the polling blackout began, one thing seemed certain — former prime minister Silvio Berlusconi had cobbled together a strong centrodestra (center-right) coalition that had narrowed the once insurmountable lead of the centrosinistra (center-left) to within single digits.Italy Flag Icon

It still seems unlikely that Berlusconi could pull off a comeback that would return the centrodestra to power, but if he actually does, he has agreed not to return as prime minister in the next government.

In a bid to bring the autonomist Lega Nord (Northern League) into his coalition, Berlusconi pledged to the Lega Nord‘s leaders in January to put forward former justice minister Angelino Alfano as a candidate for prime minister instead — that now looks like a wise move, given that the coalition has come within striking distance of the centrosinistra only because of the relative strength of the Lega Nord‘s supporters in northern Italy.

In particular, the centrodestra remains essentially tied to win the Italian senatorial elections in the region of Lombardy, Italy’s wealthiest and most-populous, on the strength of the Lega Nord.  Although Lombardy leans right in most years, Berlusconi’s unpopularity has put the region in play; in simultaneous regional elections, the Lega Nord‘s national leader Roberto Maroni is running a spirited campaign to become regional president.

Notwithstanding his pledge, Berlusconi, as the leader of the Popolo della Libertà (PdL, People of Freedom), has led a characteristically spirited anti-austerity and populist campaign.  Unlike the PdL and the main center-left party, the Partito Democratico (PD, Democratic Party), the Lega Nord never backed the technocratic government of prime minister Mario Monti in November 2011.

In a world where everyone has expected that Pier Luigi Bersani will lead the next Italian government, what would it mean if Alfano were suddenly in line to become Italy’s next prime minister?

First and foremost, you should expect that even if Berlusconi isn’t technically heading Italy’s government, he won’t be too far away from the thick of things.  He’s said that he would serve in government as Alfano’s finance minister (of all posts, you’d think Berlusconi wielding power over Italy’s finances would terrify investors and bondholders, to say nothing of German chancellor Angela Merkel).

So there’s a chance that Alfano would serve as the Dmitri Medvedev to Berlusconi’s Putin — that’s something you might expect in Russia, but it’s not quite best practices for a thriving democracy or for Europe’s fourth-largest economy.

Alfano currently serves as party secretary of the PdL and, when Berlusconi stepped down as prime minister in November 2011, he indicated he would leave frontline politics and quickly anointed Alfano — over older figures like former finance minister Giulio Tremonti or the more staunchly conservative Rome mayor Gianni Alemanno — as his preferred successor.

Berlusconi being Berlusconi, of course, Italy was subject to an on-again, off-again Hamlet act from Il cavaliere, who gave contradictory indications about a return to politics before confirming in December 2012 that he would lead the PdL into the next general election.

So what of Alfano himself? Continue reading What kind of Italian prime minister would Angelino Alfano make? →

Italy

History shows Italy’s likely center-left coalition will likely be short-lived and tenuous

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bersanivendola

In the last days of Italy’s election campaign, it’s become somewhat conventional wisdom that although the broad centrosinistra (center-left) coalition headed by prime ministerial candidate Pier Luigi Bersani is still on target to win control of Italy’s lower house of parliament, the Camera dei Deputati (House of Deputies), it’s now a toss-up as to whether Bersani’s coalition will win enough of the 315 seats up for election to the upper house, the Senato (Senate), to form a stable government.Italy Flag Icon

The reason is based on some odd quirks of Italian electoral and constitutional law — the key point is that while elections to both the Camera dei Deputati and the Senato are conducted according to proportional representation, seats are awarded differently between the two.  The party or coalition that wins the largest proportion of the vote nationally will be guaranteed at least 54% of the seats in the Camera dei Deputati, but seats are awarded to the Senato only on a regional basis, so that the largest vote-winner in each of Italy’s 20 regions is guaranteed a majority of the region’s seats.  Given that Lombardy, Campania and Sicily, three of Italy’s four largest regions, are essentially tossups, the centrodestra could win those three regions and deny Bersani a senatorial majority.

For Bersani to control the lower house, but not the upper house, of Italy’s parliament is certainly somewhat of a nightmare for a campaign that led by double digits when the campaign began.

Thus the hand-wringing that Bersani will be forced to assemble a governing coalition that includes not only his electoral partner, the socialist Sinistra Ecologia Libertà (SEL, Left Ecology Freedom), the party of the two-term regional president of Puglia, Nichi Vendola (pictured above, left, with Bersani, right), but also turn to other partners — practically, this means some sort of alliance, in the upper house at least, with the centrist coalition led by prime minister Mario Monti, Con Monti per l’Italia (with Monti for Italy).

If the senatorial balance were, however, incredibly close (say, one to three seats), Bersani might also turn to a tiny number of senators likely to be elected from the predominantly communist Rivoluzione Civile (Civil Revolution) coalition, though it remains to be seen whether they would back Bersani — Vendola would certainly find more common cause with them than with Monti and his allies.

Monti and Vendola have mutually ruled out serving together in the same coalition — although Bersani has already committed to many of the reforms that Monti began, Vendola has been much more critical of the Monti government’s efforts, whcih have included tax increases and tax and labor reform.

It doesn’t help that Vendola, who is openly gay and supports same-sex marriage in Italy, is at contretemps with the social conservative bent of Monti’s coalition.  Although Monti has expressly opposed same-sex marriage and adopt by same-sex couples, the coalition includes the Unione di Centro (UdC, Union of the Centre), comprised of former Christian Democrats and led by Pier Ferdinando Casini, who has very close ties to the Vatican, and Futuro e Libertà per l’Italia (FLI, Future and Freedom), a party formed by Gianfranco Fini, a moderate who once served as Silvio Berlusconi’s foreign minister.

There are no easy answers for Bersani, and on Monday, Wolfgang Münchau at The Financial Times predicted a re-run of the prior leftist government of former prime minister Romano Prodi, who came to office in April 2006 as the moderate head of a wide-ranging leftist coalition that included relatively moderate former Christian Democrats, more progressive social democrats and die-hard communists (including Fausto Bertinotti, who became the president of the Camera dei Deputati from 2006 to 2008).

That government fell in early 2008 over a vote of no confidence in the Senato, when senator-for-life and former Christian Democratic prime minister Giulio Andreotti scuttled an attempt to pass equal civil rights for same-sex partners.

So Münchau is right to predict that the chances of a full five-year — or even one-year — government are fairly slim in the event of an unwieldy coalition that would include not only Vendola and Bersani (difficult enough), but also Casini, Fini and Monti.

That will certainly cause even more hand-wringing and not just in Milan and Rome, but in Berlin, Brussels, London and Washington, too — without a stable government to assure investors, a new Italian financial crisis could once again endanger the future viability of the single currency.  That’s assuming that Italy, and the other troubled economies of the eurozone, finds a path out from the wilderness of increasing unemployment and low or declining GDP growth.  The reality is that the next government, whether led by Monti, Berlusconi or Bersani, will face a lot of incredibly difficult and painful choices for Italy’s future.

But the troubling precedents go beyond the most recent Prodi government — the Italian left has been long fragmented and disorganized since the end of the ‘first republic’ and the breakup of the former Partito Comunista Italiano (PCI, Italian Communist Party), which goes a long way in explaining how dysfunctional leftist governments have been in Italy.  Continue reading History shows Italy’s likely center-left coalition will likely be short-lived and tenuous →

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Monte dei Paschi scandal gives shares of blame to Italian left, right and center

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Monte dei Paschi

Founded in 1472, it’s the oldest bank in the world, but the Bank of Monte dei Paschi di Siena has proven that it can still surprise the world, for better or worse.Italy Flag Icon

The news last month that Monte dei Paschi lost €730 million from dodgy financial products between 2007 and 2009 and, even worse, that the bank hid those losses were hidden from regulators, caught everyone off guard, including not only Italy’s politicians just weeks before its general election, but even Mario Draghi.  Currently the head of the European Central Bank, Draghi served as the head of Italy’s central bank at the time Monte dei Paschi incurred the losses, an embarrassing oversight for the man whose ‘do-whatever-it-takes’ mantra has kept the eurozone’s sovereign debt crisis at bay since summer 2012.

Monte dei Paschi is Italy’s third-largest bank, which posted revenue of over €4 billion in 2010 before posting losses of €4.7 billion in 2011 and, as of last September, €1.7 billion in losses for 2012, a figure that’s sure to rise.

After its listing on the Italian stock exchange in 1999, it began an aggressive phase of expansion, acquiring several local banks as well as Banco Antonveneta from the Spanish bank, Banco Santander — the hidden derivatives that Monte dei Paschi entered into in order to finance those expansions are at the heart of the current scandal.

The crisis has helped no one in the Italian election — there’s enough blowback from the scandal to implicate not only Draghi’s bank regulators, but to have hurt leaders of Italy’s left, right and center at a time when disillusion among the Italian political elite is running as high as ever. Continue reading Monte dei Paschi scandal gives shares of blame to Italian left, right and center →

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How the Italian election, Bersani’s to lose, became a Berlusconi-Monti dogfight

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montiberlusconi

There are now less than two weeks to go before Italians select a new prime minister, and if you watched the dueling soundbites, you would be forgiven if you thought the two main contenders were current prime minister Mario Monti and former prime minister Silvio Berlusconi.Italy Flag Icon

But while Berlusconi and Monti have taken up much of the headlines, the centrosinistra (center-left) coalition headed by Pier Luigi Bersani, the leader of Italy’s center-left Partito Democratico (PD, Democratic Party), still seems more likely than not to win the Feb. 24 and 25 parliamentary elections, guaranteeing a majority in the 630-member Camera dei Deputati (House of Deputies), the lower house of the  Parlamento Italiano (Italian Parliament) and a plurality of the seats among the 315 elected members of its upper house, the Senato (Senate).

As of last Friday — the last day under Italian law that new polls can be published in advance of the election — the broad centrosinistra coalition still held a single-digit, but steady, lead over the centrodestra coalition dominated by Berlusconi’s Popolo della Libertà (PdL, People of Freedom).  After consolidating the center-right, especially by gaining the support of the autonomist Lega Nord (Northern League), Berlusconi’s coalition has pulled to within a modest deficit with the centrosinistra, despite the fact that polls show his PdL with less than 20% support and the PD with consistently over 30%.

Meanwhile, the centrosinistra coalition has lost some support to both the centrist coalition headed by Monti, the outgoing technocratic prime minister, and the anti-austerity protest Movimento 5 Stelle (M5S, the Five Star Movement) of comedian Beppe Grillo was also gaining steam going into the final two weeks of the campaign.

So if the centrosinistra lead has been whittled down a bit, the race to govern Italy still seems like Bersani’s fight to lose.  It’s a much more fragile lead than it was when the campaign started, but in Italy, you’d expect the race to tighten, especially with Berlusconi’s full-court press — even in his weakened political state, Berlusconi remains one of Italy’s richest men, and he commands a significant amount of media control.

Since the start of the campaign, even with Bersani and his center-left allies campaigning hard, sparks have flown strongest not between Bersani and Berlusconi, but between Berlusconi and Monti.

Monti, in shifting from an above-the-fray technocrat to an off-with-the-gloves politician, has attacked Berlusconi as the ‘pied piper’ of Italian politics, mocked his ‘family values’ by referencing Berlusconi’s tawdry sex scandal-ridden past, and said that a victory for Berlusconi would be a ‘disaster’ for Italy.  Earlier this week, he attacked Berlusconi’s promise to abolish — and refund to taxpayers — an unpopular housing tax as a ruse to buy votes with money the Italian government doesn’t have.

Berlusconi, for his part, launched his campaign in December 2012 by accusing Monti of dragging Italy back into recession with ‘German-centric’ policies and, despite an odd offer before Christmas to step down in favor of a united Monti-led coalition, has hammered away at Monti’s efforts to appease European interests from Brussels to Berlin, efforts that Berlusconi claims have come at the cost of improving everyday life in Italy.

In the midst of the back-and-forth between il cavaliere and il professore, where exactly does that leave the centrosinistra? And how did Berlusconi and Monti, whose parties have arguably less support than either of Bersani’s PD or Grillo’s Five Star Movement, come to dominate the campaign?

Continue reading How the Italian election, Bersani’s to lose, became a Berlusconi-Monti dogfight →

Italy, Lombardia

Lombardy looks to post-Formigoni era in toss-up regional elections

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Inside Vittorio Emanuel II

Although Italy will hold national elections on February 24 and 25, three regions will hold elections as well — Lombardy, Lazio and Molise.

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None of those will be more important than those in Lombardy (or Lombardia in Italian), the most populous region of Italy and, as home to Milan, Italy’s financial and fashion capital, also its wealthiest region.

Since the fall of the so-called ‘first republic’ with the implosion of Italy’s Christian Democratic party in the early 1990s, the centrodestra (the center-right) has dominated regional politics in Lombardy and, since 1995, Roberto Formigoni has served as Lombardy’s regional president, consistently winning outsized victories against the centrosinistra (the center-left) in 2000, 2005 and most recently, 2010.

Formigoni (pictured below), however, is not running for reelection — he announced the resignation of the regional legislature in October 2012 after his colleague, Domenico Zambetti, was arrested for purchasing votes from the ‘Ndrangheta — the local organized crime operation of Calabria — during the 2010 elections.

As such, ending corruption in the region’s government has taken center-stage in one of Europe’s wealthiest regions.

formigoni

Realistically, that means that the centrosinistra has its first real shot at winning regional power in Lombardy, though the centrodestra‘s strength is such that, despite its scandal-plagued woes, it remains very much capable of winning yet another term in power.

It would be nearly the equivalent of the Democrats in the United States taking control of the government of the state of Texas  — a political earthquake, even more of a surprise for the left than in the regional elections in Sicily in October 2012, when Rosario Crocetta became not only the island region’s first leftist president, but also its first openly gay president.

Voters will choose the regional president in a direct vote — the winner and the runner-up, as leader of the opposition, are guaranteed a seat in the 80-member Consiglio Regionale della Lombardia (Regional Council of Lombardy). The remaining 78 members of the Regional Council are selected pursuant to a proportional representation system, tied both to the presidential vote and to a separate party-list vote.

Polls show both the direct presidential vote and the vote for the Regional Council are incredibly tight.

Roberto Maroni, who became the national leader of the Lega Nord (LN, Northern League) in July 2012 after the resignation of longtime leader Umberto Bossi, is running as the candidate of the centrodestra — the Lega Nord‘s local branch in Lombardy is the Lega Lombardia (LL, Lombardy League), and it has been the longtime ally in Lombardy of the conservative Popolo della Libertà (PdL, People of Freedom) of Silvio Berlusconi.

Maroni (pictured below) has pledged to step down as the leader of the Lega Nord after the regional elections in February, regardless of whether he becomes the next regional president, apparently ending what’s been a long and fairly successful career in national politics.  Most recently, in Berlusconi’s previous government from 2006 to 2008, Maroni served as minister of the interior.

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A victory for Maroni would not only showcase the strength of the centrodestra‘s hold on Lombardy, but would be a huge boost for the Lega Nord, which has advocated more autonomy for the relatively wealthier northeast and center-north of Italy — and, at times, even its complete secession from Italy.

The candidate of the centrosinistra, Umberto Ambrosoli, is the son of Giorgio Ambrosoli, an attorney murdered in 1979 as a result of his investigation into the irregularities of a the Mafia-connected banker, Michele Sindona.

Polls show each candidate winning between 35% and 40% of the vote, often trading leads. Continue reading Lombardy looks to post-Formigoni era in toss-up regional elections →

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Italian prime minister Mario Monti has a ‘Goldilocks’ problem

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One of the enduring questions of the Italian election has been whether outgoing prime minister Mario Monti will run or not.Italy Flag Icon

Given the popularity of his reforms with the European Union leadership generally and with international investors, his return as prime minister after the February elections is by far their top preference.  Any indication that Italy will make a U-turn on its recent reforms could send Italian bond rates skyrocketing back to the 7%-and-climbing levels of November 2011.

Presumably, too, Monti would very much like to return for a longer term as prime minister to see through further reforms, further budget cuts, and be remembered as the ‘grown-up’ prime minister that put Italy on a long-term path for future growth.

But it’s an important question not just for Italy, but for all of Europe, and the U.S. economy as well.

Legally, of course, Monti cannot run for office in his own right because he’s a senator for life’ and thus, is unable run for a seat in Italy’s lower parliamentary house, the Camera dei Deputati (House of Deputies) — but that’s not really an answer as to whether he’s ‘running’ or not.

Over the weekend, Monti sort-of emerged as a candidate for the elections — he said he is ‘willing’ to lead a coalition of small centrist parties, each of which would vote to install Monti as prime minister for a second Monti-led government.  He had harsh words for Silvio Berlusconi, who has returned, despite his massive unpopularity, to lead the conservative Popolo della Libertà (PdL, People of Freedom) by asserting over the weekend that Berlusconi has demonstrated a ‘certain volatility in judgment’ — an incredibly muted criticism, perhaps, but a criticism nonetheless.  He continued his aggressive tone today with respect to Pier Luigi Bersani, who leads a center-left coalition that features the  Partito Democratico (PD, Democratic Party), by urging Bersani to silence the extremists within his own alliance.

It’s an incredibly difficult tightrope walk for Monti, given that the polls show his coalition is set to finish no better than fourth, so the only way he can return as prime minister is through the election of a hung parliament.

Monti must at least provide a pro forma argument for supporting the ‘pro-Monti’ coalition, or he would risk minimizing the number of votes that will go to the ‘Monti coalition’ — without at least some floor of campaign activity from the incumbent prime minister himself, votes will inevitably slip away from the center to the two main center-right and center-left blocs, leading to what polls show would be a clear win for Bersani, not a hung parliament.

If Monti campaigns too hard, however, he risks diminishing his above-the-fray ‘technocratic’ mien.  He’s already done that now, to some degree, by directly engaging his political rivals.  But more fundamentally, if Monti campaigns too hard and voters are seen to have directly rejected Monti, he will have diminished not only his own political capital, but the cause of political reform that’s been his government’s chief aim.  His political rivals will feel even less pressure to continue Italy’s reformist path.  Continue reading Italian prime minister Mario Monti has a ‘Goldilocks’ problem →

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Monti resigns as prime minister in light of Berlusconi’s political return

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It’s been an incredibly fast-moving weekend for Italian politics — shortly after Silvio Berlusconi announced he would return to the leadership of his floundering Popolo della Libertà (PdL, People of Freedom) on Saturday, prime minister Mario Monti announced that he would resign as prime minister upon the completion of Italy’s 2013 budget, meaning that the next Italian election could come sooner than April 2013 as previously planned.

Monti’s resignation is not the incredible bombshell that it seems — it will still take some time to pass the 2013 budget, and the coalition that supports Monti, comprised of the PdL and the center-left Partito Democratico (PD, Democratic Party), seem likely to provide support for that budget.  Earlier today, after the Italian stock market dropped and Italian bond yields crept upwards to around 4.8%, Monti reassured global markets and Italians alike that he would continue to govern through the next election.  Monti was appointed prime minister in November 2011 after Berlusconi’s government found itself in the throes of a crisis of confidence over Italian fiscal policy with bond yields of over 7%, not to mention the corruption and sex scandal that had enveloped Berlusconi in his final years in office.

Monti has spent much of 2012 passing budget cuts, tax increases and market reforms through Italy’s parliament — Monti remains well-respected in Italy, although his austerity measures in particular have become increasingly unpopular.  As such, the upcoming Italian election was always going to determine the outcome of Monti’s reforms, and it will fall to the next government to consolidate and continue Monti’s reforms.  Indeed, Italy had already started turning toward election season, and although Monti is not running in his own right, he has indicated he could return to lead a second Monti government in the event, not unlikely, of a hung Italian parliament.

The PD, together with a handful of smaller leftist allies, selected just eight days ago the broad center-left’s candidate for prime minister, the PD’s current leader, Pier Luigi Bersani, in a race that saw much of Italy cheering on the youthful, energetic mayor of Florence, Matteo Renzi.  Although Bersani has emphasized the importance of stimulating economic growth and creating more jobs, he’s largely indicated he would continue Monti’s broad path of fiscal readjustment.

Earlier in November, a handful of business leaders formed a new coalition, Verso la Terza Repubblica (VTR, Toward the Third Republic), a centrist group that will run in the 2013 election for the express purpose of returning Monti to government.  Its leaders include Ferrari CEO, former Fiat CEO and former president of Confindustria (Italy’s employer’s federation), Luca Cordero di Montezemolo.  A handful of smaller parties are also contesting the election in their own right, ranging from autonomist parties in Italy’s north and Italy’s south, the remnants of Italy’s old Christian Democrats, and parties ranging from fervently communist to nearly neofascist.

So, at most, Monti’s imminent resignation will accelerate the Italian election to February.

In one sense, that’s good news for Berlusconi’s opponents — the less time that Berlusconi has, with his ample amount of money and media power, to attack Monti’s reforms and his leftist opponents, the less likely it is that Berlusconi can turn around polls that show the PdL in third place, behind the PD and behind blogger Beppe Grillo’s anti-austerity Movimento 5 Stelle (M5S, the Five Star Movement).

On the other hand, the PdL was set to contest regional elections on February 10 and 11 in Lombardia (in northern Italy and home to Italy’s financial and fashion capital, Milan) and in Lazio (in central Italy and the region surrounding Italy’s capital, Rome), and losses in those elections could have been even more embarrassing in advance of a later spring vote.  In Lombardia, Roberto Formigoni, who has served as regional president since 1995, announced the dissolution of the regional legislature after one of his PdL allies was arrested on the charge that he bought votes from the southern organized crime organization ‘Ndrangheta in the 2010 regional elections.  In Lazio, the PdL’s Renata Polverini resigned as regional president after just three years in office after being implicated in a public expenses scandal.

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Five reasons Berlusconi returned to run in the upcoming Italian election

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After leading a symbolic ‘walk-out’ among his center-right Popolo della Libertà (PdL, People of Freedom) from the Italian senate on Thursday in opposition to the austerity measures and other reforms of caretaker prime minister Mario Monti, Il Cavaliere himself, Silvio Berlusconi (pictured above), today announced that he will lead the PdL as its candidate for prime minister in the upcoming Italian general election against a broad center-left alliance anchored by the Partito Democratico (PD, Democratic Party).

So much for a ‘third republic’ in Italian politics — with the selection of the Italian left’s old-guard’s candidate, Pier Luigi Bersani, in the center-left’s broad primary earlier this month against Florence mayor Matteo Renzi (the latter remains Italy’s most popular politician), Italy remains, for now, stuck in the same-old politics as before.

Indeed, a Berlusconi-Bersani face-off would not have raised eyebrows a decade ago.

This time around, though, Berlusconi will face none of the political luck or goodwill that’s marked most of his career — he left office in November 2011 with Italian 10-year bond rates at an unsustainable 7% amid a growing financial crisis that threatened not only Italy, but the entire eurozone.  In addition, Berlusconi has little to show for his stint in office in the way of policy accomplishments, was convicted (subject to appeal) for tax evasion earlier this autumn, and he’s been shamed by accusations of sex with underage women at the now-famous and much derided ‘bunga bunga’ parties and using his influence for the benefit of at least one of those women, a Moroccan immigrant.

So his return to office in many ways would be met with not just disdain, but outright hostility, from outside investors and much of the European political establishment, including the leaders of the European Union, French president François Hollande and German chancellor Angela Merkel.

Berlusconi’s return has been met with chilly responses across the Italian political spectrum.  Monti, who is not contesting the election but has indicated he would be available to lead a second government in the event of a hung parliament, cautioned against populism and warned that Italy must avoid returning to a position whereby Italy’s finances threatened trigger the eurozone’s wider implosion.  Beppe Grillo, a blogger and social critic, as well as the leader of the populist and anti-austerity Movimento 5 Stelle (M5S, the Five Star Movement), savaged what he called Berlusconi’s ‘exhumation.’

Berlusconi’s one-time ally, Gianfranco Fini, who served as deputy prime minister, foreign minister and a former president of Italy’s lower house, the Chamber of Deputies (Camera die Deputati), and who is running under the newly-formed Futuro e Libertà per l’Italia (FLI, Future and Freedom), also sounded alarm, noting that the PdL decision exposes Italy to additional risks.

Given the long odds — the PdL stands far behind the center-left coalition in every poll conducted for next year’s election (and sometimes behind the Five Star Movement, too) — why would the 76-year-old Berlusconi make a bid for a fourth term as Italy’s prime minister?

Here are five reasons why he could be making the race.

Continue reading Five reasons Berlusconi returned to run in the upcoming Italian election →

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Bersani routs Renzi in ‘centrosinistra’ primary to lead Italian left next spring

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Florence’s brash, young mayor Matteo Renzi and his campaign to lead the Italian left threatened to remake Italian politics at a time of upheaval and uncertainty greater than at any point in the past two decades.

But the rank-and-file of the Italian left chose the more familiar path on Sunday, elevating instead the familiar, older and more staid, even boring, president of Italy’s largest center-left party, the Partito Democratico (PD, Democratic Party), Pier Luigi Bersani (pictured above, enjoying a post-election beer).

The 61-year-old Bersani easily defeated the 37-year-old Renzi with around 61.1% of the vote (with just 38.8% for Renzi) — a victory so complete for Bersani that Renzi was winning only in Tuscany, the central Italian region that’s home to Florence, and even there, only with about 55% of the vote.

For many reasons, I argued last week that Bersani’s victory was very likely: his control of the PD party machinery, Italian cultural values that respect longevity (i.e. can you think of anyone in the past 50 years that could be described as ‘Italy’s JFK’?), close ties to Italy’s largest union, the Confederazione Generale Italiana del Lavoro (CGIL, General Confederation of Labour) and support from the candidate who placed third in the first round of the primary election, Nichi Vendola.  Vendola is the openly-gay, two-term regional president of Puglia, a more leftist candidate who is the leader and founder of the Sinistra Ecologia Libertà (SEL, Left Ecology Freedom), which will join with a handful of other small leftist parties in supporting Bersani as a candidate for prime minister in Italy’s general election, scheduled to be held on or before April 2013.  Vendola memorably said, on the same day as his endorsement, that Bersani’s words were ‘profumare di sinistra‘ — perfumed with leftism.

Current technocratic prime minister Mario Monti is not running in the upcoming election.  Monti has shepherded labor reforms, budget cuts and tax increases through the Italian parliament since the PD joined with the main center-right party, the center-right Popolo della Libertà (PdL, People of Freedom) in November 2011 to appoint Monti in the midst of a public finance crisis that resulted in Berlusconi’s resignation.

So what happens next?

Continue reading Bersani routs Renzi in ‘centrosinistra’ primary to lead Italian left next spring →

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Bersani leads as Italian ‘centrosinistra’ primary heads to Sunday runoff

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After last weekend’s first round of the primaries to choose the Italian center-left (‘centrosinistra‘) candidate for prime minister in advance of expected national elections in April, the current leader of Italy’s largest center-left party, the Partito Democratico (PD, Democratic Party), Pier Luigi Bersani looks like a favorite — even if just slightly — to win the runoff this Sunday.

Bersani (pictured above) won 44.9% of last weekend’s primary vote of around 3 million Italian voters, while the youthful mayor of Florence, Matteo Renzi, placed a close second with 35.5%.  The two faced off in a television debate earlier Wednesday, although the two candidate disagree more on tactics and broad themes than individual policies.

The regional president of Puglia — Italy’s southeastern corner — Nichy Vendola, who is openly gay and the most leftist of the three candidates, as well as the founder and leader of the more radical Sinistra Ecologia Libertà (SEL, Left Ecology Freedom), placed third with 15.6% — the SEL and a handful of other small parties have agreed to unite behind the winner of the centrosinistra primary as the prime ministerial candidate of the broad Italian left.

So with the centrosinistra primary set to end with the December 2 runoff between Bersani and Renzi, it appears that Bersani will win, despite the momentum behind Renzi’s candidacy and his promise to bring a new generation of leadership to Italy.  Vendola, earlier today, endorsed Bersani after indicating earlier that Bersani’s words were more ‘profumare di sinistra‘ — perfumed with leftism — than Renzi’s.

The battle between Renzi and Bersani is less ideological than generational — at 61, Bersani personifies the boring and staid leadership of the past 20 years of the Italian left.  At age 37, however, Renzi is something quite new in Italian politics.  His campaign’s theme is essentially that Italy is in need of a new generation of leadership — namely, Renzi’s, on the basis that a Renzi premiership would open a new and more productive era in Italian governance.  He’s not only called for an end to the era of former prime minister Silvio Berlusconi, but for a clean sweep of the Italian left as well.  Renzi’s even picked a fight with Sergio Marchionne, the CEO of Italian carmaker Fiat.

Both Renzi and Bersani have pledged to continue the era of budget discipline enacted by Italy’s current ‘technocratic’ prime minister Mario Monti, who took office in December 2011.

Monti has consistently refused to run for prime minister in his own right in the upcoming elections.  Monti, however, has indicated that he would be available to serve as technocratic prime minister again in the event of a hung parliament, and business leaders overwhelmingly favor a second Monti government to see through the budget cuts, labor reforms and tax increases that have brought Italy back from the brink of financial crisis.

Both candidates, too, have pledged to pursue more growth-oriented policies, even though it remains unclear exactly what either candidate could actually accomplish in an era of austerity throughout much of Europe.

That doesn’t mean there aren’t ideological differences between the two.

Bersani, with greater ties to Italy’s largest union, the Confederazione Generale Italiana del Lavoro (CGIL, General Confederation of Labour), comes from a stronger social democratic tradition than Renzi, who has styled himself as a modernizer not unlike former UK prime minister Tony Blair.  Bersani, the son of a mechanic, served as regional president of the leftist region of Emilia-Romagna in central Italy in the 1990s and as minister of economic development under former prime minister Romano Prodi from 2006 to 2008, where he tried to liberalize the Italian labor market.

Renzi, however, has refused to consider a potential governing coalition with the Unione di Centro (UdC, Union of the Centre), a small centrist group led by Pier Ferdinando Casini.  The UdC essentially represents the remnants of the long-dominant Italian Christian Democrats and, while Casini and the UdC would likely find overlapping interests on economic policy, the UdC, with its ties to the Vatican, remains socially conservative (e.g., it opposes same-sex marriage).  Bersani, although he is seen as slightly more leftist than Renzi, has nonetheless remained open to a coalition with Casini’s centrists.

Ultimately, it’s hard for me to believe that Renzi will actually win on December 2.  The ‘primary’ itself seems skewed in Bersani’s favor — he’s already the leader of the PD, has the support of much of the ‘old guard’ of the Italian left (such as former prime minister and foreign minister Massimo D’Alema), and accordingly, he has access to the left’s strongest party machinery, not to mention the benefit of his CGIL ties.  He now apparently has Vendola’s support from the SEL as well.

Furthermore, in a country that shows perhaps more respect for its elders than anywhere else in Europe, it seems unlikely that Italy will anoint as a potential prime minister someone so incredibly young.  The contest is especially meaningful because the PD looks set to win the upcoming elections (although the contest remains exceptionally fluid and unpredictable, even by the sometime operatic standards of Italian politics).

Continue reading Bersani leads as Italian ‘centrosinistra’ primary heads to Sunday runoff →

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Bersani and Renzi offer two distinct personalities for Italy’s center-left

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Many have led Italy’s long-fractuous center-left over the past two decades, but none have succeeded in building a durable coalition that can win an election and govern for a whole parliament.

Achille Occhetto, the leader of the Partito Comunista Italiano, Italy’s then-Communist Party, failed miserably in the 1994 elections against Silvio Berlusconi.  Francesco Rutelli, the former mayor of Rome throughout much of the 1990s, led the center-left L’Ulivo ‘Olive Tree’ coalition to defeat in 2001, and his successor, Walter Veltroni led the newly-formed Partito Democratico (PD, Democratic Party) to defeat in 2008.  The only successful leftist has been the plodding Romano Prodi, who barely won the 1996 and 2006 elections, only to watch his coalitions, after both elections, crumble within a year or two.  And that’s not even counting the pretenders, such as Massimo D’Alema, who succeeded Prodi as prime minister from 1998 to 2000 and who served as foreign minister from 2006 to 2008.

With Berlusconi now (mostly) in the sidelines as the upcoming general election approaches, the Italian left is hoping to change that, and the first step will be November 25’s primary election to determine who will lead Italy’s broad left into the general elections, which will be held on or before April 13.  In addition to the PD, the more radical left Sinistra Ecologia Libertà (SEL, Left Ecology Freedom) of Puglia’s regional president Nicchi Vendola, the minor Partito Socialista Italiano (PSI, Italian Socialist Party), the centrist Alleanza per l’Italia (ApI, Alliance for Italy) launched by Rutelli in 2009 and the perennial anti-corruption party Italia dei Valori (IdV, Italy of Values) led by former prosecutor Antonio di Pietro.

The current PD leader, Pier Luigi Bersani (pictured above, top), follows in the long line of steady, if boring and uninspired center-left politicians in Italy.  He served as the regional president of the traditional leftist stronghold of Emilia-Romagna in central Italy from 1993 to 1996, as a minister in the Prodi and D’Alema cabinets in the late 1990s and most recently, as the minister of economic development in Prodi’s second government from 2006 to 2008.  As economic development minister, he worked to bring about reforms to liberalize Italy’s labor market and its economy.  But at age 61, Bersani nearly personifies the staid tradition of the Italian left, and he would likely be a prime minister in the Prodi tradition — solidly leftist, but more of the social democratic variety than the socialist.  He has the support of most of the center-left establishment, including that of D’Alema.

His main rival, however, is hoping to end that trend — Matteo Renzi (pictured above, bottom) is the 37-year old mayor of Florence, the largest city in the central region of Tuscany.  Renzi, who served as president of the province of Florence from 2004 to 2009 before his election as mayor, has called on all of the current politicians on the left and the right to step aside to make way for a new generation of leadership — presumably his.

Despite Renzi’s considerably more populist approach to the primaries and to Italian politics, evocative of times of the ‘third-way’ style of former UK prime minister Tony Blair, both Bersani and Renzi would posture more to the center in the general election.

In addition to Bersani and Renzi, Vendola, who was served as Puglia’s leftist — and openly gay — regional president since 2005, is also running, to the strident left of both Bersani and Renzi.  Bruno Tabacci of the ApI, a former regional president of Lombardy, and Laura Puppato of the PD, a regional councillor in Veneto, are also running.

Continue reading Bersani and Renzi offer two distinct personalities for Italy’s center-left →