Friday, February 14, 2014

Letta Will Resign as Prime Minister; Renzi Will Try to Head the Next Government of Italy


           Italy will have a new prime minister, its third consecutive unelected premier since center-right Silvio Berlusconi was elected in 2008 and resigned in 2011.  Prime Minister Enrico Letta, who led a grand coalition government of the center-left and center-right, announced that he will tender his resignation to President Giorgio Napolitano today after his center-left Democratic Party voted overwhelmingly at a conference for a new Italian government to be headed by its upstart leader, Matteo Renzi, the 39 year-old Mayor of Florence.

            Regardless of whether President Napolitano accepts Letta’s resignation and urges him to submit to a parliamentary vote of confidence, the Democrats’ impatience with the pace of reform would make it unlikely the premier would gain enough support from his coalition partners to add to the small minority he retains in his own party for his executive to survive.  The Head of State had chosen Letta, a Member of Parliament, after a two-month long hung parliament had resulted after inconclusive elections in 2013, after having chosen his predecessor, technocrat Mario Monti, whom Napolitano had named a Life Senator as Berlusconi’s Government had been teetering on the brink of collapse amidst Italy’s financial crisis.  This time, however, not only was the choice to lead Italy’s government not in the hands of the voters, but not even in that of Parliament, as the Democratic Party has chosen Italy’s prime minister.  Furthermore, in a politically risky move, it has chosen in Renzi someone to lead an executive who has never served in Parliament or even stood for parliamentary or national election.  In fact, Renzi had stated that he preferred for elections to determine to the next premier, but had had also observed the unlikelihood of a definitive choice before the much-maligned and unconstitutional election law could be reformed. 

            Letta had adroitly managed to keep the unprecedented left-right government together longer than many analysts had expected, despite the removal of Berlusconi by his Democrats from the Senate, after the center-right leader’s conviction on corruption charges.  He had instituted a number of fiscal, economic and political reforms and had proposed additional ones, but impatience grew with the lack of bold parliamentary action as Italy has continued to be stuck in its worst post-Second World War recession.  

           Renzi had struck a deal with Berlusconi on a reform of Italy’s election law that would increase the required share of votes for Parliament for smaller parties to serve in government, lower the large number of bonus seats awarded the party that wins the most parliamentary seats, and reduce block lists in order to allow voters to choose their Members of Parliament more directly.  The proposal also would make the lawmaking function of Parliament unicameral, as the upper chamber, the Senate, would be stripped of its legislative power and largely become an assembly of the Regions and Provinces.  Renzi’s plan, which marginalized Letta, who supported it, would decrease the possibility of another hung parliament by giving the winning coalition a better chance of governing with a majority in the Chamber of Deputies, the lower house.  The plan not only minimizes smaller parties that tend to veto reforms, but also minimizes the obstructionist populist party, which came in third in the 2013 parliamentary elections.  The two main center-right parties, Berlusconi’s and the remnant of his former party that remained in Letta’s government, support the plan. 

Renzi would likely need support from the center-right to gain a mandate from President Napolitano to head a new government and win parliamentary approval for his political reform proposal and other fiscal and economic reforms.  However, they are likely to be calls from the right for the Head of State to dissolve Parliament and schedule new parliamentary elections – that would have to be conducted under the existing law – which could continue the uncertainty over Italy’s direction, a move Napolitano had dismissed previously.  I shall post updates of significant developments.

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