Italy forms new government: more austerity?

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Giorgio Napolitano gave the mandate to Enrico Letta, Secretary Deputy of the Democratic Party (centre-left party), to form the new broad-based government in Italy, made by the centre-right coalition with Berlusconi, the centre Civic Choice with Monti, and the new “revolutionary” party 5 Stars Movement with Grillo.

Letta is a member of the Bilderberg Group, the Trilateral Commission and consultant to Goldman Sachs, like many of his fonies and predecessors, such as Romano Prodi.

Pierluigi Bersani, the already-ex Prime Minister, expressed great satisfaction for the appointment of Enrico Letta: “Well, great” he said, while entering the headquarters of the party. For days, Letta was the most credible political figure to guide the executive.

The new government will be sworn in probably on April 25th, the anniversary of Italian Liberation, and  by the end of the week the parliament will vote for the confidence to the new government.

“I accepted the invitation and this responsibility on my shoulders, I feel strong, even stronger and heavier than the capacity of my shoulders to hold this duty.” “But – Letta added – great determination pushes me to work because I think the country needs answers”. His intention is to “use the shortest time possible,” to lift the reserve to form the government. “We are experiencing a big and unbearable emergency in which politics has lost all its credibility. There is a need for immediate answers.”

However, there are also opponents. Beppe Grillo, the leader of the 5 Stars Movement which took a large number of votes in the last election, shouts against these “under-table agreements” among deputies, or as the Italian would say, “all’inciucio”. The 5 Stars Movement  has already told Giorgio Napolitano that they will go to the consultations with the appointed Prime Minister Enrico Letta to reiterate. No discount to the nascent government, especially to Letta, the nephew of his uncle Gianni (a Silvio loyalist). “The Lettas are all a family,” Grillo pointed out in his blog, where he also quoted a sentence of Letta stated in an interview: “I prefer that the votes go to the PDL – Berlusconi’s party – rather than disperse them with Grillo”.

It appears that President Napolitano is responding to the people calling for an end to the austerity policy, by entrusting the government to Letta (fanatic of this policy). The rift between the government and the will of the people is still strong.

Has this policy actually served to anything? Everybody knows the effects quite well. Not only have they have exacerbated the recession, but up until now they haven’t even helped to improve the sustainability of public finances. On the contrary, the same austerity measures have led to dramatic increases in the debt / PIL ratio, weakening its ability to reduce debt. Austerity is a necessary step. However, the time and intensity of the austerity measures were dictated by market sentiment, rather than being the result of a logical and rational decision-making process. Too much rigidity could end up strangling the economy.

Given these premises, will this rigorous accounting policy promoted by the European technocracy continue? Judging by the aforementioned statements, I think it will.

Erika Sciarra.

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