Economy

Feb 27, 2013

Eurozone set for more pain — and it’s Italy’s fault

Italian voters have rejected austerity, opting instead for Berlusconi and comedian Beppe Grillo at the weekend's election. This will not end well for the Italian economy, or the eurozone.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

Italians are their own worst enemies, once again seduced by Il Cavaliere — and also by Beppe Grillo, a comedian preaching an anti-politician line. At the Italian election, centre-Left group leader (and outgoing PM) Mario Monti was a worthy but uninspiring politician who made even the most boring of speakers seem charismatic. Rather than acknowledging the weak economy, the need for more change and the challenges facing the country, Italians voted for the easy way, out of tax cuts and the ending of higher imposts and other changes imposed by Monti.

Reform ended up a dirty word, the future was ignored, even though there’s more pain ahead, no matter who won the polls (there is now an impasse). Rank opportunism has replaced prudence and policy-making, or rather has returned with the continued presence of Silvio Berlusconi (surely the basest of all political and business opportunists of the past 30 years) allied to the non-political grouping led of that other opportunist, comedian Beppe Grillo and his Five Star Movement.

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2 comments

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2 thoughts on “Eurozone set for more pain — and it’s Italy’s fault

  1. Marty

    So Glenn, perhaps you can explain why Krugman is wrong instead of simply asserting it to be the case? Austerity measures have failed in Spain and everywhere else, why do you think that reducing aggregate demand in the economy is somehow going to increase employment?

  2. Malcolm Street

    How on earth could so many vote for Berlusconi? What does he have to do for the Italians to wake up to him?

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