Italian electorate rejects austerity by overwhelming margin

The Italian electorate has overwhelmingly rejected the austerity which its technocratic government led by Mario Monti with the backing of Germany had imposed on the country. Mr. Monti’s party according to La Repubblicca received a mere 10.5 % of the vote and thereby elected only 45 members of the House. It was a resounding defeat for the austerity camp.The centre left coalition led by Pier Luigi Bersani received 29.5 % of the vote and elected 340 members to the House. The former prime minister Silvio Berlusconi also ran against austerity and his right of centre coalition received 29.1 % of the vote and received 124 seats. The anti politician comedian Beppo Grillo received 25.5 % of the vote and secured 108 seats in the House.Because of the special rules that reward the top party additional seats the Centre Left can control the house but it does not control the Senate . In the Senate the results are tabulated on a regional basis and the Bersani coalition received 31.6 % and 113 seats; Berlusconi 30.7 % and 116 seats; Grillo 23.8 % and 54 seats; Monti 9 % and 18 seats. So because there does not appear to be a stable coalition there may well be new elections in a short period of time. in the meantime, however, the EU’s obsession with austerity has been dramatically and democratically defeated. It is long overdue to rethink the policy and respect the democratic wishes of its people. The markets not surprisingly reacted negatively. But upon reflection they ought to understand that a policy that does not work and lacks democratic backing cannot last and that sustainable growth and recovery is only possible with alternative stimulative policies.

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About haroldchorneyeconomist

I am Professor of political economy at Concordia university in Montréal, Québec, Canada. I received my B.A.Hons (econ.&poli sci) from the University of Manitoba. I also completed my M.A. degree in economics there. Went on to spend two years at the London School of Economics as a Ph.D. student in economics and then completed my Ph.D. in political economy at the University of Toronto. Was named a John W.Dafoe fellow, a CMHC fellow and a Canada Council fellow. I also was named a Woodrow Wilson fellow in 1968 after completing my first class honours undergraduate degree. Worked as an economist in the area of education, labour economics and as the senior economist with the Manitoba Housing and Renewal Corporation for the Government of Manitoba from 1972 to 1978. I also have worked as an economic consultant for MDT socio-economic consultants and have been consulted on urban planning, health policy, linguistic duality and public sector finance questions by the governments of Manitoba, Saskatchewan,the cities of Regina and Saskatoon, Ontario and the Federal government of Canada. I have also been consulted by senior leaders of the British Labour party, MPs from the Progressive Conservative party, the Liberal party and the New Democrats on economic policy questions. Members of the Government of France under the Presidency of Francois Mitterand discussed my work on public sector deficits. I have also run for elected office at the municipal level. I first began to write about quantitative easing as a useful policy option during the early 1980s.
This entry was posted in austerity, business cycles, classical economics, deficit hysteria, deficits and debt, European debt crisis, European unemployment, fiscal policy, Italian debt crisis, J.M.Keynes, monetary policy, treasury view, Uncategorized, unemployment and tagged , , . Bookmark the permalink.

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