Italy To Europe: Yes to Tax Cuts and Spending, No to Austerity
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  • Andrew Allison

    The Guardian nailed it (http://www.guardian.co.uk/commentisfree/2013/apr/30/last-stand-italy-bankrupt-political-class. This is an utterly cynical coalition united only in its efforts to retain power. In demonstrating that Grillo is right, they’ve almost guaranteed the rise of 5-Star to power.

  • Marty Keller

    Cut taxes/more government spending: Beppo Grillo notwithstanding, what could go wrong?

  • Kavanna

    Nothing can come of this absurd coalition. The enforcers of austerity are Germany and the other northern surplus countries. They’re unwilling to underwrite any more large amounts of public or bank debt in the deficit countries. They’ve done it so far only for small countries (Ireland, Portugal, Greece, and Cyprus). There’s nowhere near enough to cover the large deficit countries (Spain, Italy, and France). Even the surplus countries have to worry about bailing out their large banks, which are insolvent — oh, sorry, sshhh 🙂

    Italy has one advantage, a fairly high domestic saving rate. That’s what supports their public debt. But there’s not much left of that cushion, maybe another year or two. Remember that Hollande in France came in promising to reverse “austerity” (not that there was any in France) and quickly found himself reduced to doing the opposite. And France has a wealthier economy than Italy.

    One should note that, so far, we’ve had “fauxsterity” in most European countries, including Italy. Their spending and debt levels continue to rise, in all but a few cases (Greece, Hungary, Ireland).

  • Jim Luebke

    So instead of imitating successful countries’ policies, weaker and less productive EU countries are going to enshrine their lack of productivity in law.

    That’s going to make the EU the strongest political entity in the world! Hooray!

    Apparently, it takes less than 25 years to forget the lessons of history.

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