Italian Elections and US Protectionism: my Monday Column

This weekend’s Italian elections failed to provide an answer to address the risk of political instability that has characterized the country since the Second World War.
The vote saw a surge in populism that the pre-election polls had not fully taken on board. The Five Star Movement looks set to win 34% of votes and the League (formerly known as the Northern League) is poised to carry off 16%, while Silvio Berlusconi’s party should gain only 14% and Matteo Renzi’s Democratic party just 18%. This marks a huge decline for the traditional governing parties as compared to 2013.

Based on the outcome expected as counting continued today, a hung parliament looks likely. There is a small amount of proportional representation, so a 40% score would be enough to secure a majority.

This potential outcome raises a number of questions: Continue reading