Comments on Italian Elections

Three immediate comments
1 – The outcome is clearly in favor of populism with the 5S movement at 34%, Lega (former Northern League) at 16% and Brothers of Italy at 4%.
2 – Democratic parties that used to govern in the past are out of the picture. Forza Italia (Silvio Berlusconi) was expected to be above Lega. It is below with 14%. The Democrat Party of Matteo Renzi is below 20% at 18%
3 – There is no majority

There is a jump for populist parties and that’s what we must keep in mind. This can be explained by low economic prospects, aging population and the refugees’ crisis. The risk therefore is to try to change institutions and notably the relationships with Europe. We know that some contenders from the 5S movement and for Lega were in favor of an exit from the Euro Area.

What could happen? Continue reading