What Would a Populist Government Mean for Italy and the Euro?
According to polls Italians in less than ten days will elect a right-wing coalition led by Giorgia Meloni and her party the Brothers of Italy (Fratelli d´Italia). Would such a populist government lead Italy into a new debt crisis? At the end of August hedge funds had already built the biggest bet against Italian debt since 2008. What would it mean for the Recovery Plan and the reforms that are associated with it? And how would a nationalist coalition affect the much needed process of closer EU integration?
We discussed this a few days ahead of the elections in our upcoming New Economy Short Cut with the Director at the Max Planck Institute for the Study of Societies Lucio Baccaro and Berenberg Chief Economist Holger Schmieding,
is director at the Max Planck Institute for the Study of Societies and specializes in the fields industrial relations as well as political economy and sociological theory.
is chief economist at the Berenberg Bank. Before joining Germany’s oldest private bank in October 2010, he worked as chief Economist Europe at Merrill Lynch and Bank of America.