(OLIVIER MORIN/AFP/Getty Images)
An optimist would draw much inspiration from Matteo Renzi’s convincing victory in Sunday’s primary elections for the leadership of Italy’s ruling centre-left Democratic party (PD). Doesn’t the success of the 38-year-old Florence mayor prove that a new generation of vigorous, reform-minded politicians is, at long last, replacing the squabbling, incompetent and sometimes corrupt oldsters who have presided over the nation’s decline over the past 20 years? Read more
By Catherine Contiguglia
♦ Italy’s government often gets dismissed as being a mess, but Enrico Letta has made some notable achievements, writes Chris Hanretty, a lecturer in politics at UEA. However, the next 100 days will present some challenges, including the backlash from Silvio Berlusconi’s tax fraud conviction, and electoral and tax system reforms.
♦The staging of walkouts across the fast food industry is not about young entry-level workers wanting more money to pay for the movies on Friday – it is about the failure of the US economy to create reasonable middle-class jobs for older and more educated workers who now depend on low wage jobs to support their families.
♦ “Mugabe will leave power when he wants to – or when his body gives out,” writes Richard Dowden in his analysis of Robert Mugabe’s victory Zimbabwe elections, which he says is partly explained by rigged elections, but also mistrust of his opponent, and the sentiment that it is better not to “upset the Big Man.”
♦ Vladimir Putin is launching an amnesty program to release some of the 110,000 people imprisoned under his leadership for “economic crimes” – such as allegedly violating the copyright on leopard print – so that they can help him figure out how to turn around the languishing economy.
♦ The corruption and nepotism that surrounds China’s political elite gets a lot of press – but in the shadows of the spotlight looms a far more widespread system of families that dominate the villages and towns throughout the vast countryside. Read more
It takes a little more than 15 minutes to cover the mile-long distance that separates the Bank of Italy from the ministry of the economy and finance in central Rome. But the upper echelons of the two institutions dominating the commanding heights of Italy’s economy have traditionally been closely linked by a revolving door. Read more
Austerity appears to be an increasingly dirty word in Europe. The past week alone has seen European Commission President José Manuel Barroso, Bill Gross of Pimco and Italy’s new prime minister Enrico Letta calling for an easing of austerity.
Spain’s surpassing of the 6m unemployed mark on Thursday added fuel to the debate. But even in Germany, the austerity police of the eurozone, cracks are beginning to show ahead of the elections with the emergence of an anti-euro party.
a) Are there any austerians left? Yes. Here are some of them.
- UK: Chancellor George Osborne hit back at criticism over his apparent excessive austerity by claiming there is no other alternative. And after a tough week when he was criticised by the IMF over the excessive pace of his austerity programme, this week has brought better fortunes for his stance as figures showed a lower deficit and the economy expanded 0.3 per cent in the first quarter.
- Germany: Chancellor Angela Merkel’s view as articulated this week couldn’t be clearer: “I call it balancing the budget. Everyone else is using this term austerity. That makes it sound like something truly evil.” Germany is the only eurozone country with a 2012 budget surplus.
- US: The situation here is different because of sequestration, which triggered automatic spending cuts and tax rises. And the White House faces a July deadline to raise the borrowing limit or default on its debt.
- Latvia: The tiny Baltic state is emerging from a state of uber austerity – part of its bid to join the euro later this year – and it could end up being seen as a poster child for successful deficit cutting implementation, with real growth of more than 5 per cent in 2011 and 2012, despite the broader recession in Europe.
- Spain: The push by Europe’s fourth-largest economy to cut spending and raise taxes has led to record unemployment topping 6m for the first time in its recent history. The government of Mariano Rajoy announced economic reforms and structural measures on Friday.
- Italy: The technocrat government of Mario Monti has been steadfast in carrying out fiscal consolidation. All eyes will be on Mr Letta, who has already said: “Europe’s policy of austerity is no longer sufficient”. Read more
Prospects for a new Italian government
The political chaos in Rome seems to be about to come to an end as the bickering parties prepare to form a broad coalition government led by Enrico Letta of the centre-left Democrats. Will the coalition be able to rise to the challenges facing Italy, including an economy now entering its eighth consecutive quarter of contraction. Ferdinando Giugliano, FT leader writer, and Guy Dinmore, Rome correspondent, join Ben Hall to discuss.