2016 Italy Country Report | SGI Sustainable Governance Indicators
Italy Report Maurizio Cotta, Roman Maruhn, César Colino (Coordinator) m o c . a i l o t o F – Sustainable Governance g i n n a v Indicators 2016 o j © Sustainable Governance SGI Indicators SGI 2016 | 2 Italy Report Executive Summary In recent years, Italy has experienced one of its most serious economic crises. The government is yet to fully restore and international confidence in the economy. To achieve fiscal stability and restore investor confidence, previous governments had introduced a strong austerity program. However, this has not prevented GDP from declining. Consequently, the Renzi government has adopted a different approach, prioritizing economic growth over fiscal stability, which it has promoted at the EU level as well as domestically. For example, the Renzi government has advocated for greater fiscal flexibility for member states within the EU. The rapid rise of the center-left Democratic Party (Partito Democratico, PD), the consolidation of the anti-establishment Five Star Movement (Movimento Cinque Stelle) and the continued fragmentation of center-right parties have significantly altered the political landscape. The previous 20 years had been characterized by a highly competitive and factitious political landscape, which had failed to deliver improvements in good governance. In contrast, parliament is now dominated by the PD, which has adopted an increasingly centrist position, with the opposition seemingly unable to offer a realistic alternative. Prime Minister Renzi’ strong leadership style and the PD’s parliamentary majority have enabled the government to drive an ambitious reform agenda, which includes constitutional, labor market, tax and public administration reforms. Nevertheless, the personalization of leadership has become even more characteristic of Italian politics with the prime minister the dominant actor in the current government.
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