In his Christmas speech, Italian premier Enrico Letta said that “generational shift” took place in 2013 and that constitutional reforms are imminent.
At Policy Sonar, we believe that:
– rather than emphasizing “generational shift”, it is more appropriate to speak of “generational divide”: never in Italian history have the differences between old generations and new generations been greater;
– new generations inherit an impossible-to-operate institutional machinery that was designed after WWII with the deliberate aim to block power concentrations and quick decisions – a democratic finesse that Italy can hardly afford with the ongoing economic crisis and 40+% youth unemployment;
– the “majority” backing Letta’s govt in December 2013 represents roughly 30% (!!) of Italian voters, so the risk of a democratic asymmetry is very high;
– even so, Letta will have a difficult time finding the numbers for constitutional reforms -will he get any support from Silvio Berlusconi?
– the non-paralyzed part of the Italian government machinery is systematically resorting to “safeguard clauses” (clausole di salvaguardia) in any bill approved by Parliament, routinely resulting into tax increases (especially local taxes and surcharges). We have seen this automaton at work with the VAT increase, excises increase and with an embarassing number of other taxes.
So: in the absence of a political will/power, the bureaucratic machinery just raises taxes. Very austere indeed, but is this what Italy needs?
