Il Nuovo Sorpasso

13 08 2011

Category; Finance, Politics

Italy has approved a tough austerity plan; the Euro is saved, the ECB will shore up Italian Bonds and Berlusconi can joyfully bunga bunga the rest of the summer away.

Even if parliament approves the plan (click here for details), brought in by emergency decree, the country does not have the political will to follow it. There is absolutely no chance that the austerity package introduced on Friday will be implemented.

The disorder in Britain recently (see here) was a reminder that there may be forces under the surface, lying dormant, but with the potential to emerge. The murder of economist Marco Biagi was the last time that happened in Italy – see here for details. Murdered by the Red Brigades in 2002 for daring to study the possibility of minor labour reform. The reforms were not implemented. There is no realistic possibility that the Italian political system has either the capacity or will to accept the consequences of any real austerity cuts.

Sorry, but if the EU is looking to Italy to save the Euro by introducing these austerity measures, they’re backing the wrong horse.

In 1987 The Italians celebrated ‘Il Sorpasso’ – see here; overtaking the UK economy and becoming the 6th largest economy in the world. They can now prepare themselves for a new Sorpasso for they will soon overtake the UK in terms of levels of civil unrest and social disorder. Bon Fortuna Italia, you’re going to need it. And bon fortuna Europa, and the world economy too.



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