Steve Bannon Is a Fan of Italy’s Donald Trump

He’s crisscrossing Europe because he believes it’s a bellwether for the United States. The scary thing is he could be right.

MILAN — Italy is a political laboratory. During the Cold War, the question was whether the United States could keep the Communists from power. Then Italy produced Silvio Berlusconi and scandal-ridden showman politics long before the United States elected Donald Trump. Now, on the eve of European Parliament elections likely to result in a rightist lurch, it has an anti-immigrant, populist government whose strongman, Matteo Salvini, known to his followers as “the Captain,” is the Continent’s most seductive exponent of the new illiberalism.

Steve Bannon, Trump’s former chief strategist, has been close to Salvini for a while. That’s no surprise. Bannon is the foremost theorist and propagator of the global nationalist, anti-establishment backlash. He’s Trotsky to the Populist International. He sensed the disease eating at Western democracies — a globalized elite’s abandonment of the working class and the hinterland — before anyone. He spurred a revolt to make the invisible citizen visible and to save Western manufacturing jobs from what he calls the Chinese “totalitarian economic hegemon.”

Now Bannon is crisscrossing Europe ahead of the elections, held Thursday through next Sunday. He’s in Berlin one day, Paris the next. As he explained during several recent conversations and a meeting in New York, he believes that “Europe is six months to a year ahead of the United States on everything.” As with Brexit’s foreshadowing of Trump’s election, a victory for the right in Europe “will energize our base for 2020.” The notion of Wisconsin galvanized by Brussels may seem far-fetched, but then so did a President Trump.

Polls indicate that Salvini’s League party, transformed from a northern secessionist movement into the national face of the xenophobic right, will get over 30 percent of the Italian vote, up from 6.2 percent in 2014. Anti-immigrant and Euroskeptic parties look set to make the greatest gains, taking as many as 35 percent of the seats in Parliament, which influences European Union policy for more than a half-billion people. In France, Marine Le Pen’s nationalists are running neck-and-neck with President Emmanuel Macron’s pro-Europe party. In Britain, Nigel Farage’s new Brexit Party has leapt ahead of the center-right and center-left.

Salvini, whose party formed a government a year ago with the out-with-the-old-order Five Star Movement, is a central figure in this shift. The coalition buried mainstream parties. He is, Bannon told me, “the most important guy on the stage right now — he’s charismatic, plain-spoken, and he understands the machinery of government. His rallies are as intense as Trump’s. Italy is the center of politics — a country that has embraced nationalism against globalism, shattered the stereotypes, blown past the old paradigm of left and right.”

For all the upheaval, I found Italy intact, still tempering transactional modernity with humanity, still finding in beauty consolation for dysfunction. The new right has learned from the past. It does not disappear people. It does not do mass militarization. It’s subtler.

  • It scapegoats migrants,
  • instills fear,
  • glorifies an illusory past (what the Polish sociologist Zygmunt Bauman called “retrotopia”),
  • exalts machismo,
  • mocks do-gooder liberalism and
  • turns the angry drumbeat of social media into its hypnotic minute-by-minute mass rally.

Salvini, the suave savior, is everywhere other than in his interior minister’s office at Rome’s Viminale Palace. He’s out at rallies or at the local cafe in his trademark blue “Italia” sweatshirt. He’s at village fairs and conventions. He’s posting on Facebook up to 30 times a day to his 3.7 million followers, more than any other European politician. (Macron has 2.6 million followers.) He’s burnishing the profile of the tough young pol (he’s 46) who

  • keeps migrants out,
  • loosens gun laws,
  • brandishes a sniper rifle and
  • winks at Fascism

all leavened with Mr.-Nice-Guy images of him sipping espresso or a Barolo.

His domination of the headlines is relentless. When, during my visit, a woman was gang raped near Viterbo, his call for “chemical castration” of the perpetrators led the news cycle for 24 hours. Like Trump, he’s a master of saying the unsayable to drown out the rest.

“I find Salvini repugnant, but he seems to have an incredible grip on society,” Nathalie Tocci, the director of Italy’s Institute of International Relations, told me. No wonder then that the European far-right has chosen Milan for its big pre-election rally, bringing together Salvini, Le Pen, Jörg Meuthen of the Alternative for Germany party and many other rightist figures.

A nationalist tide is still rising. “We need to mobilize,” Bannon told me. “This is not an era of persuasion, it’s an era of mobilization. People now move in tribes. Persuasion is highly overrated.

Bannon gives the impression of a man trying vainly to keep up with the intergalactic speed of his thoughts. Ideas cascade. He offered me a snap dissection of American politics: blue-collar families were suckers: their sons and daughters went off to die in unwon wars; their equity evaporated with the 2008 meltdown, destroyed by “financial weapons of mass destruction”; their jobs migrated to China. All that was needed was somebody to adopt a new vernacular, say to heck with all that, and promise to stop “unlimited illegal immigration” and restore American greatness. His name was Trump. The rest is history.

In Europe, Bannon said, the backlash brew included several of these same factors. The “centralized government of Europe” and its austerity measures, uncontrolled immigration and the sense of people in the provinces that they were “disposable” produced the Salvini phenomenon and its look-alikes across the Continent.

“In Macron’s vision of a United States of Europe, Italy is South Carolina to France’s North Carolina,” Bannon told me. “But Italy wants to be Italy. It does not want to be South Carolina. The European Union has to be a union of nations.”

The fact is Italy is Italy, unmistakably so, with its high unemployment, stagnation, archaic public administration and chasm between the prosperous north (which Salvini’s League once wanted to turn into a secessionist state called Padania) and the southern Mezzogiorno. Salvini’s coalition has done nothing to solve these problems even as it has

  • demonized immigrants,
  • attacked an independent judiciary and
  • extolled an “Italians first” nation.

A federal Europe remains a chimera, even if the euro crisis revealed the need for budgetary integration. Bannon’s vision of Brussels bureaucrats devouring national identity for breakfast is largely a straw-man argument, useful for making the European Union the focus of all 21st-century angst.

The union has delivered peace and stability. It’s the great miracle of the second half of the 20th century; no miracle ever marketed itself so badly. It has also suffered from ideological exhaustion, remoteness, division and the failure to agree on an effective shared immigration policy — opening the way for Salvini’s salvos to hit home in a country that is the first stop for many African migrants.

Salvini grew up in Milan in a middle-class family, dropped out of university, joined the League in its early days in the 1990s and was shaped by years working at Radio Padania where he would listen to Italians’ gripes. “What he heard was complaints about immigrants, Europe, the rich,” Emanuele Fiano, a center-left parliamentarian, told me. “He’s run with that and is now borderline dangerous.”

The danger is not exit from the European Union — the government has come to its senses over that — or some Fascist reincarnation. It’s what Fabrizio Barca, a former minister for territorial cohesion, called the “Orbanization of the country,” in a reference to Viktor Orban, the right-wing Hungarian leader. In other words, insidious domination through the evisceration of independent checks and balances, leading Salvini to the kind of stranglehold on power enjoyed by Orban (with a pat on the back from Trump) or by Vladimir Putin. “The European Union has been ineffective against Orban,” Barca noted. Worse, it has been feckless.

Another threat, as in Trump’s United States, is of moral collapse. “I am not a Fascist but. …” is a phrase increasingly heard in Italy, with some positive judgment on Mussolini to round off the sentence. Salvini, in the judgment of Claudio Gatti, whose book “The Demons of Salvini” was just published in Italian, is “post-Fascist” — he refines many of its methods for a 21st-century audience.

Barca told me the abandonment of rural areas — the closing of small hospitals, marginal train lines, high schools — lay behind Salvini’s rise. Almost 65 percent of Italian land and perhaps 25 percent of its population have been affected by these cuts. “Rural areas and the peripheries, the places where people feel like nobody, are home to the League and Five Star,” he said. To the people there, Salvini declares: I will defend you. He does not offer a dream. He offers protection — mainly against the concocted threat of migrants, whose numbers were in fact plummeting before he took office because of an agreement reached with Libya.

The great task before the parties of the center-left and center-right that will most likely be battered in this election is to reconnect. They must restore a sense of recognition to the forgotten of globalization. Pedro Sánchez, the socialist Spanish prime minister, just won an important electoral victory after pushing through a 22 percent rise in the minimum wage, the largest in Spain in 40 years. There’s a lesson there. The nationalist backlash is powerful, but pro-European liberal sentiment is still stronger. If European elections feel more important, it’s also because European identity is growing.

As for the curiously prescient Italian political laboratory, Bannon is investing in it. He’s established an “Academy for the Judeo-Christian West” in a 13th-century monastery outside Rome. Its courses, he told me, will include “history, aesthetics and just plain instruction in how to get stuff done, including facing up to pressure, mock TV interviews with someone from CNN or The Guardian ripping your face off.”

Bannon described himself as an admirer of George Soros — “his methods, not his ideology” — and the way Soros had built up “cadres” throughout Europe. The monastery is the nationalist response to Soros’s liberalism. There’s a war of ideas going on in Italy and the United States. To shun the fight is to lose it. I am firmly in the liberal camp, but to win it helps to know and strive to understand one’s adversary.

Trump the European Nationalist Puts America Last

President Trump, in concert with several European leaders, including those of Hungary, Poland, Austria and Italy, is intent on dehumanizing immigrants and refugees. The aim is to equate them with terrorists and criminals ready to “infest” — Trump’s word — American and European civilization, defined as a threatened white Judeo-Christian preserve.

It’s a consistent policy buttressed by insinuation and lies about the supposed threat, and designed to manipulate fear and nationalism as election-winning emotions in a time of rapid technological change, large migrant flows and uncertainty. Vermin infest, not humans.

Every utterance of Trump on immigration is meant to conflate immigration with danger. This is a direct repudiation of America’s distinguishing essence — its constant reinvention through immigrant churn.

The immigrant brings violence. The immigrant brings terror. The immigrant’s humanity is lesser or nonexistent. These are tropes about “the other” whose capacity to galvanize mobs, and wreak havoc, was proved in the first half of the 20th century. Trump does not hesitate to use them.

.. Viktor Orban, the right-wing Hungarian leader, who has said that “every single migrant poses a public security and terror risk.”

.. The Hungarian parliament has just passed legislation that would throw people in jail for providing assistance to asylum seekers and migrants.

.. Matteo Salvini, the rightist Italian interior minister

.. Before taking office, he said Italy was packed with “drug dealers, rapists, burglars,” whom he wants to send home.

.. the destabilizing impact of globalization on Western democracies; stagnant middle-income wages; growing inequality; fear of an automated future

..  the ease of mob mobilization through fear-mongering and scapegoating on social media.

.. Trump is strong because of a global nationalist lurch; that his feral instincts make him dangerous; and that he may well win a second term, just as Orban has now won four terms.

To ridicule Trump will achieve little absent a compelling social and economic alternative that addresses anxiety. The Democratic Party, for now, is nowhere near that.

.. Trump likes to go for the jugular. He sees opportunity in a Europe that is split down the middle between nations like Hungary and Poland that make no attempt to sugarcoat their anti-immigrant nativism and states like Germany that have not forgotten that the pursuit of racially and religiously homogeneous societies lay at the core of the most heinous crimes of the last century.

.. Orban is the most formidable politician in Europe today. It’s no coincidence that Trump called him last weekend. Their aims overlap.

..  Trump tweeted this week that “Crime in Germany is way up” and that allowing immigrants in “all over Europe” has “strongly and violently changed their culture.”

..  Trump (whose stats on German crime were wrong) backs Orban against Chancellor Angela Merkel of Germany in the continuing bid to make racism and xenophobia the new normal of Western societies.

.. the greatest danger is within. A two-term Trump presidency would likely corrode American institutions and values to the point at which they could scarcely be resurrected.

Can the Euro Be Saved?

Across the eurozone, political leaders are entering a state of paralysis: citizens want to remain in the EU, but they also want an end to austerity and the return of prosperity. So long as Germany tells them they can’t have both, there can be only one outcome: more pain, more suffering, more unemployment, and even slower growth.

.. The backlash in Italy is another predictable (and predicted) episode in the long saga of a poorly designed currency arrangement, in which the dominant power, Germany, impedes the necessary reforms and insists on policies that exacerbate the inherent problems, using rhetoric seemingly intended to inflame passions.
.. Italy has been performing poorly since the euro’s launch. Its real (inflation-adjusted) GDP in 2016 was the same as it was in 2001.
.. From 2008 to 2016, its real GDP increased by just 3% in total.
.. the euro was a system almost designed to fail. It took away governments’ main adjustment mechanisms (interest and exchange rates); and, rather than creating new institutions to help countries cope with the diverse situations in which they find themselves, it imposed new strictures – often based on discredited economic and political theories
.. The euro was supposed to bring shared prosperity, which would enhance solidarity and advance the goal of European integration. In fact, it has done just the opposite, slowing growth and sowing discord.
.. Emmanuel Macron, in two speeches, at the Sorbonne last September, and when he received the Charlemagne Prize for European Unity in May, has articulated a clear vision for Europe’s future. But German Chancellor Angela Merkel has effectively thrown cold water on his proposals, suggesting, for example, risibly small amounts of money for investment in areas that urgently need it.
.. In my book, I emphasized the urgent need for a common deposit insurance scheme, to prevent runs against banking systems in weak countries.
.. The central problem in a currency area is how to correct exchange-rate misalignments like the one now affecting Italy. Germany’s answer is to put the burden on the weak countries already suffering from high unemployment and low growth rates.
..  The alternative is to shift more of the burden of adjustment on the strong countries, with higher wages and stronger demand supported by government investment programs.
.. Matteo Salvini, the party’s leader and an experienced politician, might actually carry out the kinds of threats that neophytes elsewhere were afraid to implement. Italy is large enough, with enough good and creative economists, to manage a de facto departure – establishing in effect a flexible dual currency that could help restore prosperity.
.. Whatever the outcome, the eurozone will be left in tatters.
.. It doesn’t have to come to this. Germany and other countries in northern Europe can save the euro by showing more humanity and more flexibility. But, having watched the first acts of this play so many times, I am not counting on them to change the plot.

Merkel’s Comeuppance is Europe’s – and the World’s – Misfortune

No one who was paying attention to Greece’s predicament three years ago should be surprised by the position that German Chancellor Angela Merkel and Europe find themselves in today. But only a dangerous fool would celebrate.

.. today’s defenders of the European status quomust fight on two fronts: against Trump’s encroachments and, within Europe, against the likes of Matteo Salvini and Luigi di Maio, the rising stars of Italian politics who, despite their parliamentary majority, were denied the right to form a government by the country’s besieged pro-establishment president.

.. Just as it is Trump’s aim to overturn the global system from which Germany has benefited for decades, Salvini and di Maio see the disintegration of the euro as a welcome development and a boon to their anti-immigration campaign.
.. If you insist on policies that condemn whole populations to a combination of permanent stagnation and humiliation, you will soon have to deal not with Europeanist leftists like us but, instead, with anti-Europeanist xenophobes who see it as their vocation to disintegrate the European Union.”
.. Germany’s establishment media are now referring to the Italian economist whose appointment as finance minister was vetoed by the president as “Italy’s Varoufakis.” That moniker obscures a fundamental difference: I wanted to keep Greece in the eurozone sustainably and was clashing with Germany’s leaders in favor of the debt restructuring that would make this possible. By crushing our Europeanist government in the summer of 2015, Germany sowed the seeds of today’s bitter harvest: a majority in Italy’s parliament that dreams of exiting the euro.
.. Trump understands one thing well: Germany and the eurozone are at his mercy, owing to their increasing dependence on large net exports to the US and the rest of the world. And this dependence has grown inexorably as a result of the austerity policies that were first tried out in Greece and then implemented in Italy and elsewhere.
.. a condition of agreeing to bailout loans for distressed governments and banks. Then note that this pan-European austerity drive took place against the backdrop of massive excess savings over investment.
.. large excess savings and balanced government budgets necessarily mean large trade surpluses – and thus the increasing reliance of Germany, and Europe, on massive net exports to the United States and Asia.
.. In other words, the same incompetent policies that gave rise to the xenophobic, anti-Europeanist Italian government also bolstered Trump’s power over Merkel.
.. the US will aim to force China to deregulate its financial and tech sectors. If it succeeds, at least 15% of China’s national income will gush out of the country, adding to the deflationary forces that are breeding political monsters in Europe and in the US.