What would happen – in terms of the reaction of population and the media – if Britain was urged in the strongest possible terms to set up a non-elected government led by university professors from Cambridge, Oxford and the London School of Economics, with the aim of fixing the country’s fundamental and long-term problems?
Such an administration could scarcely be imagined, let alone tolerated or accepted. Yet this is what has happened in Italy. So we should ask if an academically-led technocracy, backed by foreign powers, is the only way to address the ongoing problems of a country which has been run by a failing and distrusted political elite. Perhaps it is the only solution in these turbulent times. However, the overall political, economic and social situation in Italy is even more complicated and challenging than it may appear.
Italy’s powerful trade unions went on general strike about a month ago. Demonstrations by public sectors have been held throughout the country. The unions are worried about the consequences of Prime Minister Mario Monti’s emergency budget for workers’ salaries and pensions, and for the economy in general. These are the first signs of doubt about the austere direction which Italy’s technocracy is taking the country. The Economist has warned: “The new Prime Minister pleases markets, but spooks the people.”
After the turmoil that overwhelmed Silvio Berlusconi’s government, it was clear that Monti was the international choice for the Italian premiership. But he also reassured many Italians worried by the ineffectiveness of their politicians. Now his government of technocrats has to cope with huge domestic and foreign expectations.
Monti’s popularity is still quite high with the Italian people. But then Italy has had the idea that the country needs a “saviour” before – for example, Benito Mussolini, Berlusconi and the various technocracies of the early 1990s.
Yet the growing feeling is that Italy’s political class, the Roman Catholic Church and the banking sector will remain untouched. Consequently, the middle classes and those at the bottom of the social ladder will end up paying more taxes. So Monti needs to take a more balanced approach in terms of public sector cuts and reform of the tax system. “Equity” must be his watchword. But an increasingly fractious civil society and more workers’ protests may be only a few of his problems.
Unsurprisingly, many in Italy’s elite – both the oligarchic and corporate elements – are resistant to change and that includes opposition to economic liberalisation in parts of the private sector.
Further, the country’s MPs refuse to see their salaries and benefits reduced – even though some people ask why they are so extravagantly remunerated when their performance was so poor as the country sank further into the financial mire.
Italy’s politicians have enjoyed excessive privileges in recent years. In some cases, they have even been above the rule of law. Addressing this is essential, but it will not be easy.
A tricky situation is likely to become even more difficult. Italy is a central player in the eurozone crisis and the country’s collapse could mean the downfall of the single currency.
What foreign politicians and markets have not fully grasped is that Monti’s job goes beyond the economic sphere. So the risk is that Italy could return to the sort of dark days that marked Berlusconi’s rule. If Monti is to have a chance of success, he must work towards the normalisation of the country. That means tackling the massive tax evasion in the country. There must be a genuine redistribution of wealth and increased social mobility.
Equally important, Italy needs a different electoral system where people can chose their preferred candidates. Under the current, discredited system, party leaders can effectively determine who their MPs are and these people are then in hock to them – as happened under Berlusconi.
Italy has become an old country for old people. There is a massive generational divide. Italian elites tend to be dominated by ageing men. The absence of a collective ethics is at the core of Italy’s problems. Public spending will hurt ordinary people but may not relaunch the economy.
One of Italy’s biggest problems is the huge public deficit. But cuts in public transport will mean people have to pay more for trains and buses, while more workers lose their jobs. So far, privatisation has not meant better or cheaper services.
Over recent decades, Italian politicians have taken almost no responsibility for their actions. Monti must know that more than a change in the political language is necessary in changing the perception of the country’s politicians.
His self-effacing approach has won him some respect among Italians and the international community. It is a welcome change from the scandals and gaffes that were the hallmarks of Berlusconi’s government.
But the success of the emergency government depends on its willingness and ability to address the reasons why so many Italian citizens are disillusioned with traditional party politics. After Berlusconi, Italy may be a laboratory for other Western democracies. But it has a chance of a new politics and a fresh start.
