Italy gets a leader with good bedside manners
Both the EU and Italy are at enough of a crisis point that they need the special qualities of Mario Draghi, who saved the euro as head of the European Central Bank.
Both the EU and Italy are at enough of a crisis point that they need the special qualities of Mario Draghi, who saved the euro as head of the European Central Bank.
One reason you don鈥檛 see much news about Italian politics is that the country has had 66 governments since World War II. They鈥檝e lasted on average 14 months. Trying to explain this is difficult. As a former prime minister, Aldo Moro once wryly said, 鈥淲hy the need to understand it? Just report about it.鈥�
We鈥檙e happy to report that Italy may soon have its most consequential prime minister in its postwar history. He is Mario Draghi, former president of the European Central Bank who single-handedly rescued the euro during a financial crisis in 2012 by fulfilling a promise to do 鈥渨hatever it takes.鈥� Now this Italian economist who saved the European Union 鈥� earning him the sobriquet Super Mario 鈥� has been tasked to save Italy, which faces its worst crisis in decades.
What is easy to understand about Mr. Draghi 鈥� unlike Italian politics 鈥� is that he has demonstrated openness and transparency in his previous roles, attributes sorely needed in Italy鈥檚 byzantine and opaque government. He is described as a listener who is innovative as well as effective in persuading others to take bold action. 鈥淚f one opts for a short-term course of stabilization, the long-term optimum will never be achieved,鈥� he wrote for his doctorate at the Massachusetts Institute of Technology.
His stellar reputation as a European leader has already made him Italy鈥檚 most popular political figure. He鈥檒l need that popularity and his admirable qualities to run a governing coalition and avoid becoming the short-lived head of a 67th government.
Italy has been particularly hard hit by the coronavirus. Its economy shrank 9% last year and is projected to fall a further 18% this year. Its debt levels are among the highest in the world. Red tape and slow courts make it one of the worst places to invest.
One reason Mr. Draghi was tapped to form a government is that Italy must show by April that it has enough reforms in place to receive $243 billion from the EU to help it end the worst recession since World War II. As the third-largest economy in the eurozone, Italy cannot be allowed to fail. It is also too large to bail out. If its economy implodes, a decadeslong experiment in Continental unity could fail.
A lot rides on Mr. Draghi鈥檚 ability to form a consensus among Italy鈥檚 fractious political parties. He has enough support to become prime minister. But reversing Italy鈥檚 reputation as the 鈥渟ick man of Europe鈥� will require Italian politicians to rise up to Mr. Draghi鈥檚 abilities. The healing can start with the kind of thinking he demonstrated for all of Europe.