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REPEAT: MNI: Renzi-Berlusconi Tie-Up An Option For Italy
Repeats Story Initially Transmitted at 08:10 GMT Jan 19/03:10 EST Jan 19
By Silvia Marchetti
ROME (MNI) - A post-election alliance between former Italian prime
ministers Matteo Renzi and Silvio Berlusconi's respective Democrat and Forza
Italia parties could be the best option for a stable governing majority in
Italy, a leading political analyst has told Market News.
"Politics is always a matter of arithmetic. An alliance between Renzi and
Berlusconi is not just mere speculation nor fantasy politics, but a likely
option," said Giovanni Orsina, director of the School of Government at the
Rome-based LUISS University
Renzi and Berlusconi could team up in an Italian-style left/right Grand
Coalition if the vote in March delivers an uncertain outcome and no party wins
the needed 40% vote share required to govern outright.
All will depend on the performance of the separate parties. Berlusconi may
be able to govern with centre-right allies. But if not, he could be open to an
agreement with Renzi. The centre-right coalition is expected to do well on March
4 and the more votes it secures, argued Orsina, the lesser the chance of an
alliance with the Democrats.
According to recent polls, Forza Italia should get 15-16% of votes, the
Democrats around 25%. Adding these up, a Renzi-Berlusconi team would have a
total of around 40% and near the mark for forming a Cabinet.
--NO CONRFMED TALKS
Both the Democrats and Forza Italia are currently in full campaign mode and
deny any potential agreement, fearing the loss of votes.
But no-one has openly rejected the possibility of joining forces.
Traditional divisions have moved on and they are now united in fighting one
single enemy: the anti-establishment 5 Star Movement, that could win up to 35%
of votes nationwide.
"The greatest danger for Italy's economy and democracy are the 5 Star. They
have no idea of what democratic representation is, they preach a direct form of
democracy which translates into tyranny," said Democrat deputy Giampaolo Galli,
a member of the Lower House budget committee.
"I have fought Berlusconi in the past, he was one of the triggers of the
2011 crisis when Italy neared a sovereign default. But the 5 Star are the real
threat today," he said.
Galli argued that the movement's promise to grant millions of Italians an
exaggerated 'citizenship wage' would be a disaster for public finances. "Nobody
would seek a job and illegal work would be encouraged," he said.
Catia Polidori, a Forza Italia deputy, shared the concern. "The 5 Star
movement do not just stand as a political threat, they could push Italy back
into recession and isolation on the world stage," she said.
Despite being Forza Italia's political opponents, the Democrats at least
have demonstrated across decades an ability to govern a nation, argued Polidori.
"We both have a strong, defined political culture and past. The fact that
the Democrats are losing consensus, though it might sound paradoxical, is not a
good sign for us," she said.
Berlusconi himself recently expressed concern over the Democrats' falling
popularity and the damage a 5 Star-led government could bring to Italy. In his
view, the stronger the Democrats are, the less votes 5 Star win.
--NO FIXED ABODE
Orsina argued that even if Berlusconi has officially formed a centre-right
coalition that wants no meddling with Renzi, he is free to withdraw support and
shift sides after the vote.
"Berlusconi's a master in keeping a foot in both camps, ready to leap when
the right moment comes," he said.
The sooner parties team-up after the vote to build a majority, the quicker
the exit from the post-electoral impasse.
It is unlikely that the election will deliver a government straight away,
but one thing appears certain: no party will have an absolute majority in
parliament.
"We'll face a political stalemate similar to the one occurred in Germany in
the elections' aftermath," warned Galli.
Orsina noted that Renzi and Berlusconi are both realists who have already
teamed-up in underground talks over voting system. Berlusconi also indirectly
supported Renzi's rise to power in 2014.
"Berlusconi wants a strong Democrat party, strong enough to act as a shield
and drain votes from the 5 Star Movement," said Orsina.
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.