The election result means the risk of an anti-system coalition has risen, but remains relatively low.Italian voters have shifted significantly to the right and towards populist parties in Sunday’s election, with a huge split between the North and the South. More than 50% of the votes went to Eurosceptic parties (Five Star Movement and the Northern League). As no single party or coalition won an absolute majority, negotiations to form a new government will start after parliament reconvenes on...
Read More »Who will tackle Italy’s root problems?
Just ahead of Sunday’s general election, there is little sign of appetite among the leading parties to tackle the significant challenges that Italy faces. The Italian general election campaign is in its final stretch before voting on 4 March. The election will take place under the new electoral law (Rosatellum bis), which allocates 37% of parliamentary seats via the principle of “first-past-the-post” and 61% via...
Read More »Who will tackle Italy’s root problems?
Just ahead of Sunday’s general election, there is little sign of appetite among the leading parties to tackle the significant challenges that Italy faces.According to the last polls published before the blackout period, no single party or coalition is projected to win an outright majority in the Italian general election next Sunday. Given cyclical growth, near-term economic risks seem to be contained, but Italy’s potential growth rate is low, and youth unemployment is among the highest in...
Read More »Europe chart of the week – Italian productivity
With less than 30 days to go, the Italian general election remains highly unpredictable. The new electoral system and the fact that 37% of seats are to be allocated on a ‘first-past-the-post’ system make projecting seats from voting intentions particularly hard. Importantly, Italy is going into this election with an economy that is performing relatively strongly relative to recent history. However, cyclical strength is...
Read More »Europe chart of the week – Italian productivity
Among the main challenges facing Italy, stagnant labour productivity is one of the most important.With less than 30 days to go, the Italian general election remains highly unpredictable. The new electoral system and the fact that 37% of seats are to be allocated on a ‘first-past-the-post’ system make projecting seats from voting intentions particularly hard.Importantly, Italy is going into this election with an economy that is performing relatively strongly relative to recent history....
Read More »Italy back in the spotlight
Italian elections are the next big political challenge facing the euro area. While near-term risks seem contained, medium-term ones remain.The Italian government confirmed 4 March as the date for the next parliamentary elections. The lower and upper houses will be elected under a new electoral law, but a hung parliament is the likely initial outcome of the elections given the fragmented political landscape in Italy.However, we do not think that, as things stand, political uncertainty will...
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