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Italian Election Results Snap Thoughts...

8/3/2018

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I wrote a preview of the Italian election a while back here that also looked at the overall state of the Italian economy. It didn’t make for pretty reading and I did reflect afterwards if I had been overly negative.

I predicted that Five Star Movement would win the most seats but would fail to get a majority. One interesting aspect of this election was that, unlike the Brexit or Trump votes, the results, though disheartening and alarming to many, didn’t come as a shock to many.

It was clear for at least 6 months that the Euro-skeptical parties were going to make major gains at the expense of the incumbent left-leaning Democratic Party. Furthermore, a hung parliament was also predicted by most polls.

What is less clear now is what follows. Italian politics is typically built on coalitions and in this campaign, there were three main groups; the centre-right coalition, the centre-left coalition and 5 Star Movement. As you can see from the results below, to form a functioning majority, this political landscape will need to be redrawn. 
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I won’t spend too long speculating on the internal political machinations now at play as there are plenty of Italian commentators who obviously understand the internal dynamics a lot more than I ever will.

I see three probable outcomes. A Matteo Salvini led centre right minority government, a Luigi di Maio 5 Star Movement in coalition with the League or the Democratic Party.

Of these, the least desirable from my perspective would be a Salvini government. He is strongly anti-immigration and has crossed the line with some language that is close to hate speech and racist on numerous occasion.

It’s important to note that Italy’s challenges and problems haven’t now started because of this election. This election has only brought these issues closer for the forefront of many in Europe, as elections do.

I will hold off further comment for now until we get some further indications of what the next government will be and will then write a more focused article on what this means, in terms of poly and impact.

However, I don’t buy into the simplistic narrative that every election in Europe is now “the centre” v “populism”. There are elements of this in Italy but while immigration has played a role, youth unemployment and disillusionment with the status quo have played a more prominent role.

Unfortunately for Italy, these issues now seem to be part of the status quo. The key policies proposed by the main parties will not help address these issues and I continue to seriously worry for the health of the Italian economy and society as whole , regardless of who next sits in the Palazzo Chigi…
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