I am flying back from the US tonight. And I must say that I’m rather grateful that I am travelling before Friday. That is the day when sequestration – automatic cuts to US government spending – kicks in. One of the areas that is likely to be hit first is air travel – with predictions that there will be cut-backs in staff on air-traffic control, security lines and customs and immigration. To be fair, it is unlikely that those cuts will be felt as soon as this weekend. But nobody is quite sure – so it’s probably best to be getting out of the country, before the lines get too long. Read more
Instability rules in Italy
Italian national elections have ended in chaos and the voters’ message is that they are tired of austerity and the political elite. The country faces a hung parliament after votes were split between a former comedian, an ex-prime minister who faces corruption charges, and the centre-left, who won narrowly in the lower house. Mario Monti, the technocratic prime minister who was appointed 15 months ago, came a distant fourth place. In this podcast, Guy Dinmore, Rome correspondent, Peter Spiegel, Brussels bureau chief, and Ferdinando Giugliano, leader writer, join world news editor Shawn Donnan to discuss the unfolding drama, which could take weeks to resolve.
Peña Nieto: taking on the old guard (Getty)
Elba Esther Gordillo encapsulates everything that is wrong with the “old Mexico”. The optimistic view of her arrest on Tuesday night, after the 68-year old union leader decamped from a private flight from San Diego, is that it shows what the “new Mexico” might become – a country where nobody is untouchable and the rule of law reigns. The cynical view is that it shows the government of Enrique Peña Nieto pursuing Mexican politics-as-usual: anyone who gets in the president’s way will be metaphorically decapitated and their head stuck on a pike as a warning to others.
Either way, Gordillo, a.k.a. “La Maestra”, is one of the most loathsome figures in Mexican politics. The head of the 1.5m teachers union, the largest in Latin America, has long been a byword for corruption, influence peddling and old-school clientelist politics. Yet although accusations have been brought against her before, no charges have ever been pressed. Now, they have. Read more
Talks in Almaty on February 27 (AFP/Getty Images)
The latest meeting between Iran and world powers to try and resolve the dilemma over the Iranian nuclear programme is over. And once again, a shaft of light has emerged that will lead some to hope that military action over the Iranian programme might be averted.
After two days of talks in the freezing city of Almaty in Kazakhstan, Iran has told the US and five other world powers that it is prepared to hold a couple more meetings in March and April to try to resolve international concerns that it wants a nuclear bomb.
That said, few will want to overplay the significance of this move. Here are three reasons why many western diplomats will be cautious. Read more
Beppe Grillo, the big winner of Italy’s 2013 election, first rose to fame in the 1970s as an irreverent, foul-mouthed comedian with corruption of all kinds in his sights. Read more
Two interesting trends that have shown up in the data from Italy’s election today.
1) The preliminary election results among the nearly 3.5 million Italian voters living abroad show a very different picture from the results within Italy.
The austerity measures and market-friendly stance of the ex-Prime Minister Mario Monti managed to convinced over 27 per cent of the votes of Italians living in Europe and in North and Central America, where his movement came in second after Pier Luigi Bersani’s Democratic Party (PD). Within Italy, fewer than one in ten Italians voted for him.
Meanwhile, the comedian-turned-political leader Beppe Grillo successfully won over Italians in the plazas where he held numerous rallies, but it appears that his anti-establishment message was not heard so sympathetically by Italians around the world. Read more
Italy ‘s parliamentary elections ended in political deadlock on Monday night with little hope of a clear majority. Join the FT as it covers the unfolding political and economic drama. By Lina Saigol.
Making sure the world gets the message – Graffiti on a wall in Livorno, Italy
Political deadlock and impending chaos, a rejection of EU-driven austerity, and market uncertainty are the main three themes in the media commentary on the Italian election that had yet to be declared on Tuesday morning.
“The reality is that Italy today is almost ungovernable,” writes Fabrizio Goria on Linkiesta, a news website. “And it will not take long for the markets to react.”
The headline in La Repubblica , the leading centre-left daily, doesn’t really need translating:
Italia ingovernabile: Senato spaccato, Grillo primo partito
“An ungovernable country,” concludes Massimo Razzi inside. “Politically, but also technically. With few ways out given the almost unworkable or numerically insufficient alliances.” Read more
By Gideon Rachman
The success of a book can sometimes tell you as much about the times as about the book itself. That may be the case with Why Nations Fail, which was published last year to great acclaim from reviewers and prize juries, and even compared to Adam Smith’s Wealth of Nations. Read more
Mario Monti exits a voting booth on February 24 (AFP/Getty)
Paul Krugman has got in early to comment on the political demise of Mario Monti – who now seems certain to trail in fourth in the Italian elections. According to Krugman, Monti’s reputation for wisdom is wildly overblown. On the contrary, he more or less deserves his fate because he was “in effect, the proconsul installed by Germany.”
Worse, according to Krugman, Monti’s policies did not even work. As in the rest of southern Europe, the economy has shrunk and so debt-to-GDP ratios have risen. There was only one “piece of good news” in the Monti era – that “bond markets have calmed down.” However, Monti cannot claim the credit even for this, because it is “largely thanks to the stated willingness of the ECB to step in and buy government debt when necessary.”
As ever, with Krugman, the argument is forcefully made. But it misses out a crucial stage in the argument and therefore unfairly denigrates the role of Monti in stabilising the Italian economy. Remember, when Monti came to power, the steady rise in the interest rates that Italy was having to pay to finance its debt was eating up more and more of the Italian budget. There was a real prospect that Italy might simply be unable to finance itself through the bond markets – and that might have sparked a terminal crisis in the euro. Read more
Italians cast their ballots in a tight election, with Brussels, Berlin and the markets looking on. By Tom Burgis, Lina Saigol, Ben Fenton and Shannon Bond with contributions from FT correspondents across Italy and beyond. All times are GMT.
On this, the final day of polling in Italy’s 2013 election, we thought it would be worth highlighting five blog posts from the FT that will help provide the context you need to understand the results when they eventually emerge…
(AP Photo/Thanassis Stavrakis, Pool)
Listening to François Hollande’s comments on his flying visit to Greece earlier this week was like hearing a reprise of his electoral campaign, in which he promised to lead a European-wide fight against austerity.
In Athens, Hollande praised the Greek government and said that, for Greece – “The next phase is one of growth and creating jobs, not more sacrifices.” Sadly, although there are signs that private-sector investment in Greece is picking up, there is also certainly more austerity and more job cuts to come, in the public sector.
President Hollande was only in Athens briefly, and so is hardly likely to be held to account for his remarks in Greece. What is more problematic is that the latest figures suggest that he will be unable to hold off the drive for more austerity back home in France. Economic growth is down and the French economy may even shrink in 2013 – compared to the Hollande administration’s initial projection of growth of 0.8%. Partly as a result, France is going to miss its target of getting the country’s deficit below the EU-mandated 3%. Read more