Italy has one of the most fashionable country brands on the planet. It also comes with its fair share of challenges.
Governing and glamour don’t usually go well together. Italian politics provides ample examples to support such an argument. The latest case is perhaps one of the more peculiar: The current coalition running the country mixes strident nationalism and populism, with a technocratic finishing touch. In many respects, the unwieldy structure is the perfect reflection of the dynamic and divergent process that drives its decision-making.
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Emotions are an essential driver of the national political discourse. “In Italy, public debate is often not based on reality, but on the perception of reality,” La Republicca’s Matteo Pucciarelli recently told the Guardian. Those conditions helped give rise to the brash television magnate Silvio Berlusconi. They have now fueled the ascension of an entirely new political elite.
Italy’s new Prime Minister Giuseppe Conte meets U.S. President Donald Trump today in the White House — two men who have openly criticized the post-World War II order, particularly in Europe. Their asymmetric attacks have caught the world’s attention. In America’s case, its standing on the world stage has suffered. Yet suddenly, the somewhat quirky and quite often quarrelsome Italians are enjoying expanded influence.
Rome’s rowdiness has gained it more leverage with Brussels. It’s far too early to entertain the idea of even a slight power to shift southward. Nonetheless, if the ruling coalition manages to hold things together, such a scenario is certainly not beyond the realm of possibility.
Recent elections in Italy saw a swing of support away from traditional parties. The Five Star Movement’s populist message propelled it past rival political groups in the last elections.
The League, formerly known as the Northern League, has gone from advocating regional independence to proselytizing separation from the European Union. Its leader and the current deputy prime minister, Matteo Salvini, called the euro “a crime against humanity.”
While Five Star lacks infrastructure, the League is much more well-established. Observers I spoke to in Italy see them as very likely to emerge as the most dominant political force in the country.
The influx of illegal immigrants to its shores was a top issue in the last election. The new government staked out a hard line on both admission of new arrivals and what should be done with those already in the country. Tough tactics worked. Italy managed to quickly secure commitments for broader burden sharing across the 27-member alliance. Other European politicians are closely following how such a scorched Earth approach rewards Rome. If they continue to squeeze out concessions, we may well see similar strategies used elsewhere.
Indeed, immigration is just the start. Talk of tossing out the euro or taking on the Eurocrats has struck fear among the continent’s bruised Brexit leaders.
Italian leaders’ influence on foreign investors remains somewhat more marginal. The coalition initially put forward a radical economist, Paolo Savona, to serve as finance minister. He had aggressively advocated for pulling Italy out of the euro. Global markets’ confidence in the country’s economy quickly started to erode. A sign of political naïveté, the Five Star Movement at first held firm. Yet, a technocrat was ultimately chosen as a compromise.
The Potential Trap for Populist Leaders
Populists have a peculiar relationship with prosperity. Much of their power derives from a sense by some of insufficient or inequitable growth. Blame is assigned to that which is different or distant. There can be an initial euphoria as proverbial and prototype walls are put up.
Italy’s leaders now enter a critical phase. They would be well-advised to consider the many mistakes and missed opportunities of their American counterpart. Less constrained by obligations to party, Trump could have paved a new political path. Instead, he never stopped campaigning.
It’s an easy trap for populist candidates who are thrust into power by those outside the system. They would prefer to stay outside the system. The newly minted ministers in Rome need to find a way to navigate the bureaucracy from within. Pragmatism needs to prevail over political theater.
I’ll never forget speaking at the Global Entrepreneurship Congress in Milan. Listening to Italians working in startups list off the number of obstacles to launching a business in the country. I quickly discovered being fashionable doesn’t make it an easier place to operate. A country’s culture has a remarkable ability to remain tied to certain time-honored traditions.
Now that they’ve broken the political mold, the new government ought to set their sights on recasting outdated rules and roadblocks. They should make the public sector more efficient for the people and enable businesses to more easily start and grow. They should retain the old practices for which Italy is famous, while inspiring more innovative creation.
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Were this examination embraced, Italy might be able to move beyond entrenched institutional issues of the past. It could become a nation known for more than fashion, food, and a fascinating ancient history. Envision a more efficient motor driving its government and economy. Inject Italians with the confidence and they can make it happen.
It’s an Italy that would not only set trends on the runway and the raceway, but on the way to once again becoming the envy of the world.
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Commentary: Italy’s New Leaders Must Embrace Old Political System to Change It originally appeared on usnews.com
