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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

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

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.

Five reasons Berlusconi returned to run in the upcoming Italian election

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

Ponta set to consolidate power in Romanian in Sunday’s elections

It’s all but certain that Romania’s prime minister, Victor Ponta, will emerge from Romania’s Nov. 9 parliamentary elections as not only the winner, but with an extraordinary mandate to govern in his own right. 

Ponta (pictured above) became prime minister earlier this year in May after the government of Emil Boc fell over protests against the austerity measures that Boc’s government had implemented, in large part dictated as a condition of loans from the International Monetary Fund that have buoyed Romania’s budget since 2009.

Shortly after taking office, however, Ponta start acting in ways that have caused alarm throughout the European Union — Ponta called a constitutionally suspect referendum on July 30 to remove Romania’s president, Traian Băsescu, for overstepping his authority, despite a ruling to the contrary from Romania’s Constitutional Court.  That referendum failed because only 46.23% of voters turned out for the referendum (lower than the 50% threshold required), but Ponta and Băsescu have been locked in political warfare ever since, and will likely continue to do so until Băsescu’s term ends in 2014, although it seems very likely that Ponta and his allies could try to impeach Băsescu after Sunday’s parliamentary elections.

Ponta’s referendum against Băsescu was only one of several constitutionally suspect actions in the first months of his tenure as prime minister.  Ponta made blatant attempts to put allies in charge of Romanian public television, attempted to push through a new first-past-the-post electoral law (that was ultimately rejected by Romania’s constitutional court), stacked the leadership of Romania’s parliament with his allies, and has been accused of plagiarism in his doctoral thesis.

Given that Romania, Europe’s ninth most-populous country with 21 million people, has been a member of the North Atlantic Treaty Organization since 2004 and a full European Union member since 2007, U.S. and European policymakers are anxious that Ponta will attempt to steamroll the Romanian judiciary and/or Băsescu.  The political turmoil in Romania has already caused EU officials to delay Romania’s entry into the border-free Schengen Area,  the free-travel zone that covers much of Europe.

It seems even more unlikely that the election will settle the feud between Ponta and Băsescu, who seems set to do everything he can within his role as Romania’s head of state to frustrate Ponta.  It’s possible that Băsescu could even refuse to nominate Ponta as prime minister following Sunday’s election, which would result in a constitutional crisis and, potentially, new elections.

The election comes at a time when outside investors are losing patience with Romania’s increasingly negative political climate, and, in particular, the IMF will increasingly pressure Romania’s government for concessions before early next year, when its current €5 billion funding package expires.

The latest polls all show a remarkably consistent lead for Ponta’s Uniunea Social Liberală (USL, Social Liberal Union), a patchwork alliance of various parties that formed just in 2011, primarily Ponta’s own Partidul Social Democrat (PSD, Social Democratic Party), the one-time center-right Partidul Naţional Liberal (PNL, National Liberal Party) and others.

Together, the USL as an alliance holds at least 161 seats (the PSD with 92 seats, the PNL with 57) in the 315-member Chamber of Deputies (Camera Deputaţilor), the lower house of Romania’s parliament (Parlamentul României), going into Sunday’s elections, and look very much likely to extend that lead.

Currently, the largest party in the Chamber of Deputies, with 98 seats, is the Partidul Democrat-Liberal (PDL, Democratic Liberal Party), Băsescu’s party, which had governed after its victory in 2008 parliamentary elections until Boc’s government fell earlier this year.  The PDL, which is running under a center-right patchwork alliance, the Alianţa România Dreaptă (ARD, Right Romania Alliance), that formed only in September 2012 as an alliance among the PDL and two smaller parties, the National Peasant Christian-Democratic Party and Civic Force.

The ARD / PDL, however, remains deeply unpopular in a country that saw just 1% GDP growth in 2010, contracted by 0.4% in 2011, and has pushed through three years of harsh austerity measures.

In the 137-member Senate (Senat), the Romanian parliament’s upper chamber, Ponta’s PSD holds 40 seats and his allied PNL holds 27 seats, with just 35 for the PDL.

One recent poll, however, gave Ponta’s USL fully 62% of the vote to just 17% for the ARD, the second choice of Romanian likely voters.

Continue reading Ponta set to consolidate power in Romanian in Sunday’s elections

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

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

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

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

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

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

Crocetta to become Sicily’s first openly-gay, first leftist president

I wasn’t entirely sure he could pull it off, but the unlikely Rosario Crocetta will become Sicily’s first openly-gay regional president and likely the first leftist to have won a clear mandate in one of Italy’s most culturally and politically conservative regions.sicily flag

According to preliminary results, the center-left coalition backing Crocetta has won 30.48% and 39 seats in Sicily’s 90-member regional parliament, giving it a plurality of seats, but something short of an absolute majority.

Crocetta’s victory in Sicily makes the former Gela mayor Italy’s second openly gay regional president — he joins leftist Nichi Vendola, the president of Puglia (also in southern Italy).  This is a bit of a shocker given Sicily’s incredibly conservative bent, and the region has been consistently governed by center-right politicians and centrists alike, but never by a former Communist Party member.

Through the early 2000s, Crocetta was a member of the Partito della Rifondazione Comunista (Communist Refoundation Party).  Although many PRC members joined moderate social democrats and centrists to form what’s now Italy’s largest center-left political party, the Partito Democratico (PD, Democratic Party), in 2007, Crocetta certainly comes from the more radical leftist tradition.  Interestingly enough, so does Vendola, who was elected as Puglia’s regional president in 2005 from the PRC and subsequently reelected.  Vendola, who has future national political hopes, and who seems likely to play a  role in Italy’s upcoming national elections in early 2013, has formed his own leftist party — Sinistra Ecologia Libertà (SEL, Left Ecology Freedom).

Not only is Crocetta’s victory a watershed moment for Italy’s left, it’s a victory for Sicily’s courageous anti-mafia forces.  In a region where politics and organized crime are often two sides of the same coin, Crocetta was an anti-mafia crusader as the former mayor of Gela, Sicily’s sixth-largest city, working to convince local businesses not to pay protection money to the Sicilian mafia.  In fact, he was such a stridently anti-mafia mayor that he’s been the subject of several assassination plots and has been living outside of Gela since 2009.

Meanwhile, the center-right coalition led by European Parliament member Nello Musumeci has won just 25.73% and 21 seats.

The surprisingly strong third-place winner was the new anti-austerity protest party, the Movimento 5 Stelle (M5S, Five Star Movement), led nationally by the comedian and blogger Beppe Grillo — who swam across the Strait of Messina from the Italian peninsula to Sicily to kick off the party’s regional campaign.  Giancarlo Cancelleri, the presidential candidate backed by the Five Star Movement, won 18.18% and the party won 15 seats.

A center-right ‘Sicilianist’ coalition, essentially the coalition to which outgoing president Rafaelle Lombardo belongs, under the candidacy of Gianfranco Micciché won just 15.50% and 15 seats.  Lombardo resigned in July in the wake of charges of corruption and complicity with the Sicilian mafia, forcing early elections.

Although the Sicilian autonomist and center-right parties have governed together before, they won’t together command a majority of seats in Sicily’s regional parliament, meaning that the center-left will govern with a minority, likely with the outside support of Five Star Movement legislators, or even from the Sicilianist autonomists.  Continue reading Crocetta to become Sicily’s first openly-gay, first leftist president

Four key elections underway today in Ukraine, Italy, Lithuania and Brazil

It’s a quadruple-threat Sunday for world elections!

Ukraine: parliamentary elections. In Ukraine, voters will go to the polls for legislative elections to select 450 members of the unicameral parliament, the Verkhovna Rada.  The elections will be a key test for Ukraine’s fledgling democratic institutions eight years after the ‘Orange Revolution.’  Pro-Russian president Viktor Yanukovych, whose support is based in the eastern half of the country, is hoping to win an outright majority in a campaign that has been far from free and fair.  Two center-right groups are vying for the opposition vote — a bloc led by former prime minister and presidential candidate Yulia Tymoshenko, who has been imprisoned on politically-motivated charges and a new anti-corruption group led by heavyweight champion Vitaliy Klychko.  Unlike in the previous 2007 parliamentary elections (which were fully by proportional representation), today’s elections will be determined one-half by proportional representation and one-half through direct single-member districts.  That means the anti-Yanukovych vote could splinter, allowing the government to consolidate its control over Ukraine.  The election result will likely determine whether the former Soviet republic of 45 million people will continue its turn toward Europe as a potential European Union member.

Lithuania: parliamentary runoff. Nearby, in another former Soviet republic of just over three million people — Lithuania, voters return to the polls for a runoff after a vote two weeks ago that saw the triumph of two leftist parties: the populist Darbo Partija (DP, Labour Party), led by Russian-born Viktor Uspaskich, won 19.96% and the more center-left Lietuvos socialdemokratų partija (LSDP, Social Democratic Party of Lithuania) won 18.45%.  The governing Tėvynės sąjunga – Lietuvos krikščionys demokratai (TS-LKD, Homeland Union — Lithuanian Christian Democrats)  of prime minister Andrius Kubilius won just 14.93%, a defeat for Kubilius after a difficult campaign that reflected the realities of four years of grinding austerity and difficult economic conditions.  Half (70) of the seats in Lithuania’s unicameral parliament, the Seimas, were determined by the October 14 vote, while 71 more seats are determined in single-member districts, and many of those will be determined in today’s runoff vote. It’s virtually certain that the Social Democrats and Labour will form the next government, likely under the leader of the Social Democrats and former finance minister, Algirdas Butkevičius rather than the corruption-plagued Uspaskich, although either the Social Democrats or Labour may ultimately wind up with more seats after today’s vote.

São Paulo: mayoral runoff. In Brazil’s largest city, São Paulo, home to nearly 11 million people, voters will choose a mayor in a contest that will have implications for Brazil’s national politics.  Voters will choose between the top two candidates from the Oct. 14 vote: Fernando Haddad, the candidate of the Partido dos Trabalhadores (PT, Workers’ Party) of Brazilian president Dilma Rousseff and former president Luiz Inácio Lula da Silva, and a former education minister in Lula’s administration; and José Serra, the candidate of the center-right Partido da Social Democracia Brasileira (PSDB, the Brazilian Social Democracy Party), who lost the Brazilian presidency to Lula in 2002 and, more narrowly, in 2010 to Rousseff.  Serra, himself a former mayor of São Paulo from 2004 to 2006, when he won election as the governor of São Paulo state, despite a pledge to serve his entire term as mayor,  Serra led the vote two weeks ago with 30.75% to 28.99% for Haddad.  Serra and Haddad edged out Celso Russomanno, a famous television consumer advocate in the 1990s, with support from the evangelist Universal Church of the Kingdom of God, who had been the frontrunner throughout the campaign, who finished with just 21.6o%.  Polls show Haddad with a double-digit lead over Serra, however, which could effectively end Serra’s hopes for a third run at the presidency.

Sicily: regional parliamentary elections.  Finally, in the southern Italian region of Sicily, voters will select the 90 members of Sicily’s unicameral regional parliament.  Three parties are vying for the largest share of the vote, and 80 seats are awarded by proportional representation: a center-right coalition led by European parliament member Nello Musumeci and backed by former prime minister Silvio Berlusconi (who was convicted Friday for tax fraud) and his Popolo della Libertà (PdL, People of Freedom); a center-left coalition led by Rosario Crocetta (pictured above, top), the openly gay mafia-fighting former mayor of Gela (Sicily’s sixth-largest city); and the new anti-austerity protest party, the Movimento 5 Stelle (M5S, Five Star Movement) of blogger and comedian Beppe Grillo, who kicked off his party’s Sicily campaign by swimming across the Strait of Messina.  Radical leftists and a conservative Sicilianist/autonomist coalition are also expected to win significant support. The election is a significant test in advance of national elections expected to come in April 2013 following the technocratic government of prime minister Mario Monti, who has pledged not to run in his own right.

Today’s Sicilian elections showcase potential party strength before 2013 Italian election

Today, one of Italy’s most iconic regions — Sicily — goes to the polls to elect the 90 members of its regional legislature and, indirectly, a new regional president.

For all the beauty of its landscape, the majesty of its architecture and the divinity of its food and wine, Sicily, the home of the well known Cosa Nostra, the Sicilian organized crime group that has become synonymous with the word mafia, is not the world’s model showcase for good governance.

Sunday’s elections come six month early after the resignation on July 31 of regional president Raffaele Lombardo, who was elected overwhelmingly in 2008, but stepped down under a cloud of corruption — depressingly familiar charges of complicity with the Sicilian mafia.  The election also comes as a bit of a dress rehearsal for Italy’s expected upcoming general election (along with early elections expected soon in Lombardy as well) — just a couple days after former prime minister Silvio Berlusconi’s conviction in a Milan court for tax fraud.

Rosario Crocetta (pictured above, top), the leading leftist candidate for president and the mafia-fighting former mayor of Gela (Sicily’s sixth-largest city) would be Sicily’s first openly-gay regional president and has campaign marks the best chance of the center-left in a generation to govern Sicily.  But polling nearly as well as the broad center-right and the center-left is the new anti-austerity protest party, the Movimento 5 Stelle (M5S, Five Star Movement) of blogger and comedian Beppe Grillo — he made a splash by swimming across the Strait of Messina from the Italian peninsula to Sicily at the beginning of the campaign (pictured above, bottom).

In one way or another, each of the five main parties competing in today’s election in Sicily will be able to pull lessons from the result in advance of national elections that, although just six months away, remain incredibly fluid.

Italy’s technocratic prime minister Mario Monti, who was appointed in November 2011 to push through budget, tax and labor reforms in the midst of an Italian sovereign debt crisis, remains popular, but has said he won’t run in his own right for election (although could remain available to head a future technocratic government).

Berlusconi had pledged as recently as last Wednesday that he would not run for prime minister as the leader of his own center-right Popolo della Libertà (PdL, People of Freedom), though the unpredictable former prime minister has already said he plans on staying in politics to some degree.  Yesterday, in a Nixonesque, hourlong rant, the enraged, newly-convicted Berlusconi hinted he might even try to bring down Monti’s government to bring forward a snap election even sooner, lashing out at Monti, German chancellor Angela Merkel, former French president Nicolas Sarkozy, and a ‘judge-ocracy’ that he says is ruling Italy.  With plenty of money and control over Italy’s private media, he’ll be able to influence politics as long as he wants.  Currently, the PdL secretary is Angelino Alfano, a 41-year-old former justice minister who is from Sicily and rising star who’s thought to be the leading contender to lead the PdL into the next general election.

Meanwhile, the center-left Partito Democratico (PD, Democratic Party) expects to choose its candidate for prime minister in November.

With 5 million people, Sicily features just around 8.5% of Italy’s total population.  Despite a national GDP per capita of around $31,000, Sicily’s is something like $19,000, vying for Italy’s poorest region with a handful of other southern provinces — it’s nearly half the GDP per capita of the richest province, Lombardy (around $39,000).

In the prior regional elections in 2008, Lombardo led a center-right coalition that included the PdL, the Unione di Centro (UdC, Union of the Center), remains of what used to be the once-formidable Christian Democratic party and his own regionalist Movimento per le Autonomie (MpA, Movement for Autonomies) and together won 65.4% of the vote and 61 of the 90 seats in Sicily’s regional parliament.  A PD-led leftist coalition, headed by Anna Finocchiaro, won just 29 seats at 30.4% of the vote.  The vast majority of the seats (80) will be chosen by proportional representation, with a 5% threshold for winning seats; an additional 10 members are elected with a block-voting system.

In today’s regional elections, though, there are five coalitions/parties, each fielding its own candidate for regional president — polls are hard to come by, but it’s a bit of a free-for-all.

Near the top of the polls is the PdL coalition, headed by Sebastiano ‘Nello’ Musumeci.  Musumeci, a member of the European Parliament, is himself a member of a small autonomist right-wing party in Sicily, Alleanza Siciliana (Sicilian Alliance), having his roots in the now-defunct National Alliance, a stridently right-wing party which had neofascist roots.  Although he’s not actually a member of the PdL, a broad win for Musumeci would bolster the PdL nonetheless and, in particular, boost Alfano’s chances of leading the PdL into the next elections — despite record-low polling for the PdL nationally, Alfano would be attempting to become Italy’s first Sicilian prime minister since Mario Scelba led the Italian government from 1954 to 1955.

Also at the top of the tolls is Crocetta’s PD-led coalition (also supported by the UdC).  Crocetta’s election would be historic in at least two ways.   Continue reading Today’s Sicilian elections showcase potential party strength before 2013 Italian election

Berlusconi convicted of tax fraud, sentenced to four years in prison

It took ten years, but former prime minister Silvio Berlusconi was convicted today of tax fraud and sentenced to four year in prison (although reduced to just one year under a 2006 amnesty law).

Italy’s appeals process is lengthy and complex, so there’s a very real possibility that Berlusconi’s conviction, already ten years in the making, will be overturned.  Although today’s tax fraud conviction is more serious than Berlusconi’s prior convictions, he’s evaded final justice in Italy before.  A perjury conviction in 1990 was set aside under a prior amnesty law and a conviction for illegal financing Berlusconi’s political party in 1997 was set aside after the statute of limitations expired before Berlusconi had exhausted his appeals.

For today, it seems very likely that the conviction will prevent Berlusconi from reversing course on his announcement, made earlier this week, that he will not seek to lead Italy’s center-right into the next general election, expected in April 2013.  It was thought that Berlusconi has enough money and control over Italy’s media to reverse his decision — and conceivably still could, although I think it’s now virtually impossible for Berlusconi to make anything like a successful comeback in time for 2013.

In addition to the tax fraud trial, Berlusconi remains in the crosshairs of various Italian prosecutors, including for abuse of power charges, such as the use of state flights for personal use and for printing wiretapped conversations.  Most sensationally, though, Berlusconi is being investigated for prostitution charges stemming from a sexual relationship with a Moroccan teenager, named ‘Ruby Rubacouri’ in the Italian media.  Generally, Berlusconi has become a laughingstock for the allegations of ‘bunga, bunga‘ parties while in office lavished on Italian VIPs featuring orgies with young women.

Ironically, notwithstanding the energy and time that Berlusconi’s various governments spent passing immunity laws designed to shield Berlusconi and his allies from prosecution in Italian courts, the 2006 amnesty law that would reduce Berlusconi’s sentence to just one year was passed by the center-right government of former prime minister Romano Prodi.

In brief, Berlusconi has been convicted for inflating the costs of certain TV rights by his media company, Mediaset, in order to offset his tax bill.  Essentially, at the time Berlusconi created his media empire in the late 1970s and 1980s, Italy featured only public television channels nation-wide.  In building his media empire, Berlusconi bought local stations and broadcast simultaneous content, essentially cobbling together many local channels with synchronized programming, thereby establishing Italy’s first private television networks.

As such, Berlusconi commanded an incredible amount of control over Italy’s media, from his first successful campaign in 1994, through today.

With the 2013 Italian election approaching, Berlusconi’s conviction is yet another blow for the Italian center-right.  His apparent withdrawal from active participation in Italian politics has made the outcome of those elections incredibly uncertain, with most Italians satisfied with the current government headed by technocratic reformer Mario Monti, who’s said he won’t run on his own behalf in the upcoming elections.  Berlusconi has hinted he might support the continuation of Monti’s government for a full term if the 2013 elections are inconclusive, and certainly most of Italy’s business elite prefer Monti to Berlusconi or any of the various leftist or populist alternatives. Continue reading Berlusconi convicted of tax fraud, sentenced to four years in prison

Is Italy headed into a post-Berlusconi ‘third republic’ era of national politics?

Silvio Berlusconi this week all but conceded that he would not run as the main center-right candidate for prime minister in Italy’s upcoming elections, due to be held before April 2013 — and he even hinted he could support a moderate coalition in favor of continuing the economic reforms of current technocratic prime minister Mario Monti (pictured above).

I’m not convinced this is the last we’ve heard from Il Cavaliere, though, and I’m pretty sure this isn’t his last word on whether he’ll run in 2013.

Berlusconi has been the central figure of Italian politics since 1994, so if he changes his mind tomorrow, or next month, or next year, he has sufficient money and control over Italian media to play a huge role in the upcoming election.  Current polls indicate, however, that most Italians are ready to turn the page on Berlusconi.

Many political scientists and Italians alike consider the period from 1945 to around 1993 Italy’s ‘first republic’ — a period where Italy’s Christian Democratic party (and various allies) essentially controlled the government continuously, through less-than-stable coalitions that often split and re-formed in various permutations of the center-right and center-left.  Despite consistently strong opposition from Italy’s Communists, the Communists never had enough strength — or were permitted to gather enough strength — to enter government.

After the Tangentopoli (‘Bribesville’) scandal that implicated essentially every major politician in Italian public life in the 1990s, Italy entered its ‘second republic’ — an era that’s been dominated by Berlusconi and has featured somewhat more stability — Italian politics since the 1994 general election can be seen as a struggle between a largely rightist coalition and another largely leftist coalition (despite Italy’s reputation for pizza topping politics).  Governments have been more stable, but media freedom has in some ways regressed, in large part due to Berlusconi’s overweening control of private (and sometimes public) media in Italy.

If Berlusconi indeed remains on the sidelines in the upcoming election, however, we could see a tectonic shift in Italian politics that represents yet another era — a new ‘third republic’ — one where Italy continues to develop even more engrained democratic norms and stronger liberal freedoms.  Even if that somewhat overstates the case, 2013 is set to become as much a transformative year in Italian politics as 1994.  What’s striking is that, no more than six months before the next general election, what we know about the future of Italian politics is massively outweighed by what we don’t.

The latest poll, as of October 9 from Ipsos, currently shows Berlusconi’s center-right Il Popolo della Libertà (PdL, the People of Freedom) winning just 18.0% of the vote, to 28.5% for Italy’s main center-left party, the Partito Democratico (PD, Democratic Party) and the Movimento 5 Stelle (M5S, the Five-Star Movement), a populist protest vehicle of popular comedian and blogger Beppe Grillo, with 17.4%. Those numbers, however, are very likely to change between now and the election.

At the risk of dumping a laundry list of minor parties at my readers, it’s important to note the other actors in Italian politics and where they stand:

  • the rump of Italy’s once-dominant Christian Democrats, led by the highly respected Pier Ferdinando Casini, the Unione di Centro (UdC, Union of the Centre) wins 6.4%;
  • the centrist, anti-corruption Italia dei Valori (IdV, Italy of Values) of former Tangentopoli prosecutor Antonio Di Pietro wins 6.0%;
  • the socialist Sinistra Ecologia Libertà (SEL, Left Ecology Freedom) of the popular — and openly gay — president of Puglia, Nichi Vendola, wins 5.6%;
  • the separatist Lega Nord (LN, Northern League), under the new leadership of Roberto Maroni following a corruption scandal involving former longtime leader Umberto Bossi, wins just 4.9%;
  • no other party wins more than 3% of the vote — the most notable of the smaller parties is the newly-formed free-market liberal Futuro e Libertà (FLI, Future and Freedom) of former foreign minister Gianfranco Fini, a former Berlusconi ally who once headed the neofascist National Alliance party (although he worked to move it from the fringes to the center).

With all of that in mind, consider exactly everything we don’t know about an election ostensibly just six months away: Continue reading Is Italy headed into a post-Berlusconi ‘third republic’ era of national politics?

Il ritorno del Berlusconi — why his re-emergence in Italian politics is completely logical

There will be plenty of time to think about the next Italian general election if, as is likely, current prime minister Mario Monti is permitted to carry on with his technocratic government until April 2013, the last date upon which the next general election must be held.

It’s worth taking in two important stories from last week:

The Economist points us to reports in the Italian press that Silvio Berlusconi (pictured above, right), the éminence grise (well, surprisingly jet black) of Italian politics since about 1994, is likely to lead the center-right in the upcoming election and is taking an increasingly critical position against Monti’s government.

Italy’s federal government, a technocratic government formed under Monti, an economist and former European Commissioner, with a mandate to reform Italy’s sclerotic economy and shrink its bloated public sector — with the support of Berlusconi’s own center-right Il Popolo della Libertà (PdL, the People of Liberty) and the main opposition center-left Partito Democratico (Democratic Party), has managed to keep a skittish bond market at bay, which has been spared, for now, the same fate as Spain in the bond market last week.

Meanwhile, The New York Times last week showcased the fiscal problems of Sicily, which is tottering further on the edge of a debt crisis than Italy itself.  Monti’s government recently sent €400 million to Sicily to forestall a potential default by a region that has long been plagued by low growth, outsized government patronage and abuse of its considerably autonomous power — to say nothing of the Mafia corruption issue.

Today, in fact, Sicily’s regional president, Rafaelle Lombardo resigned following an indictment for corruption — elections follow for October 28 and 29 of this year.

Since November 2011, when Berlusconi stepped down, more or less in disgrace, he has kept a fairly low profile.

But everyone knows as long as he’s around, he would have been the chief behind-the-scenes power of Italy’s center-right.  So when he seemed to designate a successor in November in former justice minister, Angelico Alfano (pictured above, left), now the secretary of Berlusconi’s PdL, it seemed difficult to believe that Il Cavaliere, as Berlusconi is known in the Italian press, was really stepping aside.

Alfano, who is Sicilian, has not managed to recover any ground for the PdL (formerly — and potentially again in the future — known as Forza Italia) — one poll from SpinCon released on July 19 shows the PdL winning just 18% of the vote to 27% for the Democratic Party and 14% for the newly formed Euroskeptic and populist party of comic and blogger Beppe Grillo, the Movimento 5 Stelle (Five Star Movement).**

Italian politics have long been fragmented, but like Greece earlier this year, Italian voters seem to be fragmenting even further under the weight of austerity measures introduced by Monti’s government. Monti himself has said he will not run for election in his own right under any banner.

But above all, Berlusconi’s ace is that he still has more media power than anyone else in Italy.  He also remains the most charismatic leader among a political class of bores — for instance, has anyone outside of Italy even heard of Pier Luigi Bersani, the main center-left opposition leader?

Berlusconi practically invented Italian television in the 1980s by buying TV stations across Italy and harmonizing their content at a time when RAI (Italy’s public television network) was supposed to hold a monopoly on national stations.  He still holds an incalculable political advantage because of that power — it’s what helped him burst onto the political scene in 1994 and what helped him keep power in much of the 2000s, even through the last days of sordid accusations of his cavorting with underage girls and prostitutes at ‘bunga, bunga’ parties.

It’s not clear that Italian voters are willing to turn back to those days (a strong majority of voters say they refuse to back Berlusconi ever again), but if anyone can pull it off, it’s Berlusconi.

Also, for a premier who spent a significant amount of legislative time in the 2000s crafting immunity bills to protect himself from prosecution relating to all sorts of seamy dealings, Berlusconi is likely tempted by the shield from prosecution that yet another stint in office would bring — or at least tempted by the opportunity to parlay a political comeback into a term as Italy’s president in the future.

And at age 75, Berlusconi is a fairly young man by the standards of Italian institutions; Alfano was born in 1970. Italy is a country of old men — to have a forty-something prime minister is unheard of. (Recall that the 93-year-old Giulio Andreotti, a former prime minister in the 1970s and 1980s, now an Italian ‘senator for life’, was instrumental in bringing down the short-lived leftist government of Romano Prodi just six years ago.)

But Alfano’s Sicilian heritage raised an eyebrow in November and it does so especially now, with Sicily’s finances in the headlines and yet another Sicilian president resigned under ties to the omni-present curse of Mafia infiltration.

It’s worth remembering that “Italy” as a national concept really only emerged in the 1860s — and even today, just over 150 years after “unification,” it’s hard to think of Italy as a true country, even if you don’t believe that nationhood in Italy is really a myth-laden fluke.  You have to go back to the mid-1950s to find a Sicilian who has served as Italy’s prime minister — Mario Scelba.  No Sicilians have served as president of Italy in the current republic.  No Sicilians have served as president of Italy in the current republic.  That may not be so surprising, given that Sicily is so far away, not just geographically, but culturally from Rome, to say nothing of Milan or Florence or Turin.  Although Sicilian votes essentially enshrined Italy’s old Christian Democrats in power until the 1992 Tangentopoli (‘Bribesville’) scandal that, in effect, wiped clean Italy’s political slate, Sicilians have rarely held the highest office in Italian politics.

So with Sicily’s finances and its corruption in global headlines, the “Sicily question” is yet another for Berlusconi to sideline Alfano as the 2013 elections approach — for the time being, at least.