THEY ARE doing things differently these days in Rome and Italian voters and international partners and markets are noticing.
Two men, new premier Mario Monti (68), who took the helm of an emergency government of technocrats just over 100 days ago, along with the country’s highly regarded European Central Bank president Mario Draghi, have quietly, and remarkably fast, done more to restore Italy’s reputation than many would have thought possible.
Monti’s style, exemplified by his frugal office, and the substance, an austerity budget of tax hikes, pension reform and spending cuts, are a far cry from the inertia of Berlusconi populism, fights with the judiciary, and bunga-bunga parties. Reflecting on Monti’s quiet, determined style La Stampa tells the story of former German chancellor Gerhard Schröder, worn out by a long negotiating session, who realised where those features came from: “Did you attend a Jesuit school? That is why you argue, argue, and never concede anything.” Yes, Monti replied. Ten years at the Jesuits in Milan.
Recent polls reflect the fair wind the public is giving him: one for Corriere della Sera found government approval running, despite the pain of cutbacks, at 52 per cent, while only 8 per cent of voters had faith in the political parties, and 69 per cent did not know which party they would vote for at the election due next year. Observers do warn, however, that there are growing concerns about the social fairness of the austerity measures, although very public attempts to chase down rich tax evaders are enormously popular.
The bond markets too, have been kind. Monti’s budget – a mix of measures to eliminate the deficit and promote growth – and his programme to reform the country’s notorious bureaucracy have helped bring Italy’s borrowing costs sharply down from levels that brought it to the brink of economic disaster in November. Italy is not out of the woods yet, hence Monti’s urgent support for both an EU firewall and growth measures.
Politics to some degree is on hold, a function of the solemn undertakings given by the deeply unpopular parties to support his programme. Over them hangs the prospect of elections next year and of retirement for many – “Parliament is full of dead men walking,” one veteran senator told the Financial Times. Monti himself insists he will not stand for parliament and is seen by many as a shoo-in for the presidency. But if not Monti, then who will take the reins? The parties certainly don’t have the answer at the moment.