Elections were held in Italy over the last two days, and it looks like the centre-left have a majority in the lower house, but can't come up with a plausible coalition in the equally powerful upper house. The big losers are Mario Monti's technocrats who had implemented painful and unpopular economic reforms since taking office in 2011. The big winner is Beppo Grillo, the anti-establishment comedian who got 25% of the vote (the largest for any single party, since the mainstream left and right are both coalitions). He wants Italy to leave the euro and currently seems to be ruling out entering a coalition with the established parties.
Could a coalition be formed, or will there have to be new elections? What will happen to the Italian economy? What will be the consequences of this stalemate for Europe and the euro? What would the best outcome for Italy?
Originally posted by Teinosuke Elections were held in Italy over the last two days, and it looks like the centre-left have a majority in the lower house, but can't come up with a plausible coalition in the equally powerful upper house. The big losers are Mario Monti's technocrats who had implemented painful and unpopular economic reforms since taking office in 2011. The big winner is Be ...[text shortened]... consequences of this stalemate for Europe and the euro? What would the best outcome for Italy?
Would leaving the Euro help them avoid budget cuts?
What can they do, just run up trillion dollar deficits and keep adding to social programs when they need to be cut?
Originally posted by KazetNagorra Italy leaving the euro is not an option. It is a founding member of the EU and the euro, and the eurozone's third biggest economy.
Well, it's the option favoured by at least a quarter of Italian voters. If Beppo had got another 5% he could have had a majority in the lower house.
Originally posted by sh76 Would leaving the Euro help them avoid budget cuts?
Possibly it would, since the new lira would be devalued, favouring Italian exports and thus possibly helping to pull the Italian economy out of its current melancholy state. Obviously it would cause problems too, but whether the problems would outweigh the benefits, I don't know.
An update - the leader of the third party, the comedian Beppo Grillo, has ruled out a coalition with the left and says he expects new elections within the year.
Originally posted by Teinosuke Elections were held in Italy over the last two days, and it looks like the centre-left have a majority in the lower house, but can't come up with a plausible coalition in the equally powerful upper house. The big losers are Mario Monti's technocrats who had implemented painful and unpopular economic reforms since taking office in 2011. The big winner is Be ...[text shortened]... consequences of this stalemate for Europe and the euro? What would the best outcome for Italy?
Where were they hung? In the drying room?? (I crack myself up sometimes!)😀😀😀
Hung parliament in Italian election
26 Feb '13 17:24
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