State of Democratic Emergency!

Or should that be a undemocratic state of emergency?

In past AFOE threads, we’ve been discussing the Italian elections, as you no doubt saw. One thing that came up is the possibility that Silvio Berlusconi might not behave himself in the event that he looks like losing. This is after all a man who has no compunction about changing the law to avoid being prosecuted, associating with barely concealed mafiosi, and generally flouting the principles of the Italian constitution. It’s by no means impossible that, losing power and immunity, he might end up in jail. Can he really be trusted, then, not to try to rig the ballot and to go away if he loses?

This week’s events have lent much point to this discussion. Berlusconi’s behaviour has become a little odd, to say the least. After walking out of a TV discussion, he proceeded to harangue the members of Confindustria for making up all Italy’s economic problems as part of (you guessed it) a communist plot, and finished up by announcing that a “state of democratic emergency” existed after a minor fracas broke out near one of his speeches.

Worryingly, he seems to be assembling the ideological foundations of anti-democracy; he argues that there is a plot by secret communists who incorporate the judiciary, the procuracy, the media and even the top executives of Italian industry, and that the state is in danger from a violent opposition movement aligned with them. They are also part of the communist conspiracy. Perhaps he will soon discover that they are also terrorists.

Is this not something like the arguments of Carl Schmitt’s Ausnahmezustand? To deal with these violent communists who are endangering democracy and the rule of law, presumably, democracy and law must be suspended. If the election is close, I think there is a small but non-trivial chance that he will try to announce that, “to restore order”, the elections will be “suspended” or some such. Fortunately, any such action would have seismic economic and political consequences, national bankruptcy being the most immediate, which ought to deter the people he would need to carry with him from supporting such a move.

Yes, there is a “state of democratic emergency” in Italy. I don’t think it’s too wild to say that Silvio Berlusconi is it.

Italian Elections 2006 III

Well Romano Prodi and Silvio Berlusconi finally got to meet up in front of the TV cameras last night, even if they didn’t exactly enter into face to face combat. The poll consensus seems to be that Prodi won it on points.

The debate seems to have centred around economic themes, and Euractiv has a summary of it here. Surprisingly, or unsurprisingly, Finance Minister Giulio Tremonti has been trying to put a brave face on things, by claiming that Italy is now “on the right tracks” and that the situation of Italy’s “public finances is good”. Mario Draghi, the new governor over at the Italian central bank does not seem especially convinced, since he was claiming only last week that the Italian economy had run aground.

Again unsurprisingly a poll held shortly before the debate showed that a large number of Italians are still undecided about how they will cast their vote, even if there is some evidence that the Prodi coalition may be hanging on to their lead.

Roberto over at Wind Rose Hotel has the third of his election posts now up. He draws our attention to the latest contributor to the ‘great debate’, semiologist and erstwhile novelist Umberto Eco (link in Italian). Eco has indicated he might consider leaving Italy were Berlusconi to be re-elected. Democracy, according to Eco, is in danger in Italy. Angelo Panebianco, writing in Corriere della Sera (which has remember endorsed the Prodi coalition), takes issue with Eco and asks: why so much theatrical drama?:

For two reasons, I think. The first is that such dramatisation is exactly what attracts the kind of ‘intellectual’ audience which has chosen Umberto Eco, and especially Umberto Eco, as its very own champion and reference point. The hate for Berlusconi among this section of the public is palpable and evident, we have surely all of us found this in recent years in scores of private conversations and in the fascinating phenomenon of collective psychology. …..

The second reason for the dramatisation, I think, is to do with a problem which is typical of our (Italian) culture. It is an ancient legacy here, for many, to mistake democracy, which is a method of resolving conflicts by counting heads instead of breaking heads them……..(to mistake this process) forthe realisation of their own ideals. To mistake the victory or defeat of their political views for the victory and defeat of democracy: this is a kind of childhood illness of democracy.

Well it seems that Italy is a society which is rapidly ageing but where ‘childhood illnesses’ abound. Reading the piece by Panebianco I could not help but think, not of Umberto Eco, but of Nanni Moretti, whose films I thoroughly enjoy, but whose perceptions of contemporary Italian society have always struck me as being ‘warped’ to say the least. Democracy is not in danger in Italy in this election, it is not even in doubt. What is in danger, and about this there should be no doubt, is the Italian pension system and the mid-term economic well-being of Italian society. Far from the Italian pension system having been reformed and fine-tuned to the extent which Tremonti alleges, the necessary adjustment has only recently started on the road, and this small step was taken only after the last minute tussle and haggling (in part with represantatives of Berlusconi’s insurance industry interests) which was needed to salvage at least one piece of reforming legislation from 5 years of a decidedly ‘reform unfriendly’ government. What Italy needs at this point in time is a government which is serious about introducing the Lisbon agenda in Italy. This would not be a Berlusconi-lead government. Will it be a Prodi-lead one? This is what remains to be seen. If it turns out that neitherof the alternatives are up to the task, then Eco may well, in a certain sense be right: Italy will then have a crisis of democracy, but not, I think, the one he has in mind.

Italian Elections 2006 Part II

Well the election campaign in Italy trundles on, and issues are starting to emerge. One of the more curious details to have come out in recent days refers to the size and shape of the voting card. It is to be some 65 centimetres long with canditates arranged horizontally rather than vertically across the strip (if this seems like a long ticket, some US cards are up to a metre long apparently, although just why AGI online choses the US for its comparison is beyond me).

Beyond the ticket itself, Italy’s leading independent newspaper Corriere della Sera has just published an editorial coming down (for the first time I think) on the side of the centre left coalition lead by Romano Prodi (declaration of interest: CdS is my preferred reading among Italian newspapers). The reasoning for this decision seems to run something along the lines that the Berlusconi government has taken policy decisions more in the light of the need to resolve internal coalition differences than in the light of the real needs and interests of the country: to which ‘amen’.
Continue reading

Italian Elections 2006

Ok, the Italian elections are now just about one month away, although you wouldn’t guess this from reading the British press where the David Mills/Silvio Berlusconi case is what seems to be making all the running. Now as I indicated in this post, I will try and give some systematic coverage to the election issues as they evolve during the campaign. In that post I outlined 7 issues which I thought would be worth looking at in an election which I think is going to be very important not just for the Italian people themselves but for all citizens of the EU. I had a first pass at one of the topics here (and here).

Maybe the best starting point is number 7 on the list: the sense of denial.

Looking at the fact that Berlusconi himself seems to have started his campaign in Washington, while former Commission president Romano Prodi now seems to have become an early convert to neo-protectionism (and this piece), I would definitely say that this is really the number one issue. In order to help me on my course through these troubled waters Roberto of Wind Rose Hotel has kindly offered to send me some on the spot material. Here is his first missive. It confirms my worst fears.
Continue reading

The End of the Dolce Vita?

Are the good times and the good life still going to continue to roll in the Italy of the twenty first century? This is the core question the Economist’s Europe editor John Peet asks in the latest Economist Survey: Italy, Addio, Dolce Vita. As Peet says:

Italy is approaching a crunch. Rather like Venice in the 18th century, it has coasted for too long on the back of its past success. Again like Venice, it has lost many of the economic advantages which underpinned that success. For Venice, it was a near-monopoly on trade with the East that paid for the creation of its beautiful palaces and churches; today’s Italy has benefited hugely from a combination of low-cost labour and a switch of workers away from low-productivity farming (and the south) into manufacturing (mostly in the north). But such good things invariably come to an end.

Italy badly needed a dose of pro-market reforms, liberalisation, privatisation, deregulation and a shake-up of the public administration, all of which Mr Berlusconi had promised. He even pledged to cut taxes. A majority of Italian voters, backed by much of Italian business, were willing to overlook both his legal entanglements and his conflicts of interest and give him a chance to reform the country. But as the next election approaches, very little of what he promised has been delivered, so many of his erstwhile supporters are feeling disillusioned.
Continue reading

Italy’s Fazio To Stay?

Antonio Fazio, the Bank of Italy governor whose defiance in the face of criticism recently hit the international headlines and lead to some embarassing photos in Washington still refuses to go. Berlusconi seems almost resigned to the fact that he may stay:

Silvio Berlusconi, Italy’s prime minister, on Tuesday told parliament he had already done everything in his power to secure the resignation of Antonio Fazio….The government could not intervene directly, and so I did the only thing that could be done. I appealed to the governor, to his sensitivity and to his conscience, Mr Berlusconi said.

The Italian Government Has A New Crisis

Germany isn’t the only EU country where serious ongoing economic problems are leading to political gridlock. Italy’s situation is no better, and arguably worse. This ‘worse’ aspect was pushed into the headlines yesterday by the resignation of Economy Minister Domenico Siniscalco. This is sending shock waves throughout the entire Italian political system. It still isn’t clear at the time of writing whether the Berlusconi government can survive, especially given the gravity of the underlying problem which is the need to make severe budget cuts when Italy is in a prolonged recession and elections loom sometime next spring.

Essentially Siniscalco quit because of continuing government infighting over the 2006 budget and over the administration�s failure to force the resignation of Bank of Italy Governor Antonio Fazio following the scandal produced by accusations that he showed bias against Dutch bank ABN AMRO during a takeover battle for the Italian Banca Antonveneta SpA.
Continue reading

Not sentimental, and no France

Until a couple of days ago, I was very nearly incommunicado for two weeks. We took the kids to Italy on holiday, you see, and found ourselves in a place with no television, no internets, not even mobile-phone reception. The tiny shop at the site doesn’t even stock English-language (or any other non-Italian) newspapers, and my Italian is, if that is possible, even viler and more vestigial than my Spanish. I found this isolation very pleasant altogether, and in some ways regret having to come back into the connected world.

Continue reading

Combustible Politics

I have felt for some time that Rober Maroni would not have been so outspoken without at least the tacit permission of Silvio Berlusconi, and now we have the evidence to back my hunch:

“Italian Prime Minister Silvio Berlusconi called the euro a “disaster,” blaming the currency for Italy’s economic slump and seeking to use anti-euro sentiment in his election campaign against opposition leader Romano Prodi.

“Prodi’s euro has been a ripoff,”

With Italy in its second recession in as many years, the euro is proving to be a “disaster,” Berlusconi, 68, said. Berlusconi has blamed the euro for raising prices and choking exports.

When You’re Done You’re Done

You know I’m sure most of you think my constant references to Argentina in the context of Italy’s economic problems is troubling, possibly even irritating. You may well be right. I have to say that I followed Argentina steadily from 1998, waiting to see the inevitable happen. The principal problem was, lets be clear, the 1:1 dollar peg. This was the epoch of the internet/ICT boom, and a rapidly rising dollar. It’s not clear to me at all that had Argentina pegged to the dollar in 2002 it would have had the same problems so quickly. One of the problems with being attached to a rapidly rising currency is that your imports get cheaper, and your exports dearer.

Now for an apochryphal story. Late in the crisis, before the geyser finally blew, back in early December 2001, a friend of mine visited Argentina. Seeing some nice shoes in a shop window he entered the shop (you will remember Argentina was famous for its leather products: all those cows). On asking where the leather came from, he was informed ‘it’s from Brazil, Argentinian leather is too expensive’. One month later it was all over bar the shouting. Well…..
Continue reading