Courtesy of Mish.
Reader “AC” who is from Italy but now lives in France has some very interesting thoughts on the upcoming elections in Italy. “AC” writes …
Hi Mish,
Italian elections will take place this weekend.
A hung Parliament is likely. This is due to the highly fractionated political landscape in conjunction with electoral law that favors such an outcome.
In the Chamber of Deputies (the lower house of Italy’s parliament) voting rules give extra seats to the largest party by popular vote. Senate seats (the upper house) are allocated on a regional basis.
Chamber of Deputies Analysis
- The Center-Left coalition (Bersani) is losing steam but will likely end up with the highest percentage of votes.
- The Center-Right (Berlusconi) is recovering strongly and cannot be entirely discounted.
- Monti’s center coalition will likely score poorly, between at 10 and 13%.
- Rivoluzione Civile (far left) will likely score between 4 and 6%, and may be unable to reach the Chamber access threshold (4%).
- Beppe Grillo’s Movimento 5 Stelle (Five Star Movement) is again on the rise. Movimento 5 Stelle may even reach 20% and become the second largest party in the country.
- The first wild card is a high and rising number of undecided voters.
- A second wildcard factor is the recent rise of “Fare per Fermare il Declino” (literally “Act to Stop the Decline”, acronym FiD), a primarily Libertarian party founded less than a year ago.
Grillo’s public meetings are getting “oceanic”, he is attracting many people disappointed with this political class with a very populist program.
In the campaign you can hear some extremely populist proposals, most of them from Grillo, Berlusconi, and Rivoluzione Civile.
Populist Proposals
- Give back Real Estate tax collected in 2012 (Berlusconi)
- Forbid foreclosure of the main house of a person or a family in case of delinquency (Grillo and Berlusconi). Imagine the effect on mortgage issuance!
- Give a minimum guaranteed survival wage from the government to all those are unemployed (Grillo, Rivoluzione Civile).
- Even Monti is promising to cut taxes, the same taxes he decreed (and that center-left and center right approved as well).
Assuming the Center-Left hangs on to win the Chamber, the outcome in the Senate is crucial as to whether or not there is a hung Parliament. The regions are, Lombardy, Veneto, Lazio, Sicily, Campania. By far the most important is Lombardy, with the highest number of senators.
In regards to the Senate outcome, it’s important to look at a very recent rise of FiD, “Fare per Fermare il Declino”. …
