Unlike many other European countries, Italy still has not restored economic growth to its pre-crisis level – a fundamental failing that lies at the heart of many of its political problems. Now that a new anti-establishment government is taking power, it remains to be seen if the economy will be remade, or broken further.
.. Italy has become the first major EU member state to be governed by a populist coalition... M5S and the League both openly question the benefits of eurozone membership, though neither party made leaving the euro a specific commitment of their governing program in the election campaign, a failure that Italian President Sergio Mattarella seized upon in vetoing key cabinet pick... They also disdain globalization more generally.. The League, in particular, is obsessed with cracking down on immigration... promised to tackle corruption and topple what they see as a self-serving political establishment, while introducing radical policies to reduce unemployment and redistribute incomes... There are rumors that the parties want to write down Italy’s sovereign debt.. In such a scenario, Italian banks currently holding considerable amounts of government debt would suffer substantial balance-sheet damage. The risk of deposit flight could not be excluded... Italy’s nominal (non-inflation-adjusted) growth is too weak to produce substantial deleveraging, even at today’s low interest rates... Italy’s real per capita GDP remains well below its 2007 pre-crisis peak.. a worldwide retreat from globalization and growing demands for national governments to reassert control over the flow of goods and services, capital, people, and information/data... For years, global market forces and powerful new technologies have plainly outstripped governments’ capacity to adapt to economic change... Italy could soon find that its leading export is talented young people... the Italian government needs to root out corruption and self-dealing, and demonstrate a much stronger commitment to the public interest... Italy needs to develop the entrepreneurial ecosystems that underpin dynamism and innovation. As matters stand, the financial sector is too closed, and it provides too little funding and support for new ventures... collaboration between government, business, and labor has played a key role in the countries that have adapted better to globalization and technology-induced structural change.
Why “America First” Means “Europe United”
despite the formation of an anti-establishment coalition government in Italy, and the rise of populist parties across Europe, opinion polls suggest that support for the EU is now higher than it has been in decades. According to a recent Eurobarometer survey, if a referendum on EU membership were held today, 83% of Europeans would vote to remain in the bloc; and a record-high 60% regard EU membership as a “good thing” for their country.
.. In other words, while populism can certainly sow political divisions within the EU, there is little evidence that Brexit itself has caused a domino effect.
The Brexit ringleader Nigel Farage might like to think that Italy’s new populist government represents a success for his brand of go-it-alone nationalism, but it turns out that Europe’s populists are of a different breed than those in the UK. Though financial markets have grown skittish at the prospect that Italy’s new leaders could drive their country out of the eurozone, polling conducted after the election in March showed that 60-72% of Italians would not support such a move.
.. Just 32% of citizens believe that “things are going in the right direction” for the EU
.. Trump’s tariffs have thus provided a perfect opportunity for Germany’s grand-coalition government to meet Macron halfway on his ambitious proposals to reform the EU and the eurozone.
.. Trump revels in the chaos he sows. He regards international relations as a zero-sum game of winners and losers, and, to the extent that his foreign and trade policies make any sense at all, they are transactional. By contrast, the EU’s modus operandi is one of collaboration and compromise. And now that these two worldviews are colliding, each is likely to be emboldened.
It’s Benjamin Netanyahu’s World Now
It wasn’t always like this. In his 36 years as a diplomat and politician, Mr. Netanyahu has been reprimanded by the Reagan administration, nearly barred from entering the White House, and banned from the State Department during George H. W. Bush’s administration because of his criticism of its policies. He has been at loggerheads with President Bill Clinton and President Barack Obama, both of whom could barely conceal their disdain for him. Now he has an administration that shares his positions almost instinctively.
The simplest explanation for this reversal of fortune is that the Trump administration is dominated by the two types of ideologues with whom Mr. Netanyahu has always gotten along best: foreign policy hawks like Secretary of State Mike Pompeo and the national security adviser, John Bolton, and Christian evangelicals like Vice President Mike Pence. And presiding over it all is Mr. Trump, a man who has known and admired Mr. Netanyahu since they first met in New York in the 1980s.
.. On May 9, the morning after the announcement on the Iran deal, Mr. Netanyahu was in Moscow as guest of honor at Russia’s Victory Day, standing beside President Vladimir Putin. Mr. Putin still supports the Iran deal, and is in tacit alliance with Iran, Israel’s deadly adversary. And yet the Russian president presented the Israeli prime minister as his country’s close ally. He has also allowed Israel to attack Iranian bases and weapons depots in Syria, and even to bomb Russian-built antiaircraft batteries.
.. Mr. Putin and Mr. Trump are not alone. Mr. Netanyahu has recently been feted by Prime Minister Narendra Modi of India, President Xi Jinping of China, Prime Minister Shinzo Abe of Japan, as well as a host of leaders of smaller countries — including those with far-right governments like Hungary, Poland and Austria. No less significantly, he has maintained close contacts with President Abdel Fattah el-Sisi of Egypt and behind the scenes with the Arab leaders of the Persian Gulf.
Mr. Netanyahu is the toast of the new wave of right-wing, populist and autocrat-like (if not outright autocratic) leaders. They see in him a kindred spirit, even a mentor. He is the leader of a small country who has taken on American presidents and outlasted them. He has successfully defied the Western liberal human rights agenda, focusing instead on trade and security. Israel’s success as a regional economic and military power is proof in their eyes that the illiberal approach can prevail.
He has spent more time than any of them on the geopolitical stage, winning election after election. In many ways, Mr. Netanyahu is the precursor to this new age of “strongmen” who have come to power in different parts of the world. It is the age of Bibi.
.. He has identified a trend: The world is tiring of the Palestinian issue.
.. Mr. Netanyahu has hastened this trend by expanding Israeli diplomacy with Asian and African countries, which have shown little interest in the Israel-Palestine conflict, but are eager to acquire Israeli technology, both civilian and military.
.. Mr. Netanyahu believes he has won the argument. He has proved that the world, not even the Arab nations, doesn’t really care about the Palestinian issue. That Israel can continue enjoying economic growth, regional military dominance and improving foreign relations despite its military control over the lives of millions of stateless Palestinians.
Why I could no longer serve this president
I resigned because the traditional core values of the United States, as manifested in the president’s National Security Strategy and his foreign policies, have been warped and betrayed. I could no longer represent him personally and remain faithful to my beliefs about what makes America truly great.
.. These policies are purportedly being pursued to make good on nativist campaign rhetoric that resonated with many legitimately aggrieved Americans. But I know many of these voters. They are not “deplorables.” They deserve better. They deserve enlightened and informed debate about the true nature of the globalized economy, automation, and the need for education and reimagined job-skills programs to keep us competitive.
.. Moreover, policy options based on fear and hashtags will only offer us a false dichotomy... immigration issue cannot be debated rationally when the president routinely encourages division and disparages today’s migrants with the same hateful language deployed a century ago to excoriate my Irish and Italian ancestors... My goal is to create the conditions for respectful and nonconfrontational dialogue between supporters of the president’s immigration policy and the full panoply of migrants