A perfect economic storm made Italy ripe for a protest vote

Too little and far too late. Six words that sum up the performance of the Italian economy in the decade since the financial crisis, and that go a long way towards explaining the support for populist parties in the election.

Indeed, if ever there was a country that was ripe for a protest against the political mainstream it was Italy, where four years of modest growth have not been nearly enough to repair the damage caused by a deep slump in 2008-09 and a second two-year recession in 2012-13.

Only two countries that belong to the west’s club of rich nations, the Organisation for Economic Co-operation and Development, have yet to see economic activity surpass pre-financial-crisis levels. Greece is one. Italy is the other.

In some respects, Italy’s record since the turn of the century is even worse than that of Greece, because at least Greece had a boom before the bad times arrived. Italy’s living standards are only slightly higher than they were when the country became a founder member of the single currency in 1999.

Membership of the euro has clearly been a factor in explaining the rise of populism in Italy, because it has made it impossible for governments in Rome to restore competitiveness by devaluing the currency – something they did on a regular basis in the days before monetary union. The disciplines of euro membership have resulted in slower growth, stagnant wages, high unemployment and austerity – perfect conditions for Beppe Grillo’s Five Star Movement to exploit.

Source: theguardian