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New Leader Like Many of His Generation, the 38- Year-Old Mayor of Florence Despairs of Ita- Ly's Political Establishment

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New Leader Like Many of His Generation, the 38- Year-Old Mayor of Florence Despairs of Ita- Ly's Political Establishment The Economist January i ith 2014 Europe 23 Latvia's government of Enrico Letta's left-right coalition. His de- parture reveals the tensions in the PO New currency, caused by the election of the business- friendly Mr Renziin December. new leader Like many of his generation, the 38- year-old mayor of Florence despairs of Ita- ly's political establishment. Ignoring the PO old guard as well as younger associates Latvia's president nominates Laimdota like Mr Fassina, he has formed an execu- Straujuma as prime minister tive composed entirely of his own allies. T ATVIAis used to having a woman in the Mr Fassina's resignation was largely ideo- Ltop job. VairaVike-Freibergaserved two logically motivated. But,as he told an inter- terms as president in 1999-2007 and is viewer, it was also no fun being in a gov- widely seen as the best head of state since ernment under constant attack from Mr Latvia regained independence 23 years Renzi, leader of the main party ostensibly ago. Now it is set to get another female supporting it. Mr Fassina's suggestion, leader, this time as head of government. which prompted Mr Renzi's caustic Chi?, On January 6th Andris Berzins, the presi- was for a reshuffle so that some of the dent, nominated Laimdota Straujuma as mayor's chums could find out how hard it the next prime minister. is to run a country. Ms Straujuma, a mathematician and Italy has a long tradition of party lead- former agriculture minister, has impressed ers pulling the strings from outside the cab- those who negotiated with her in Euro- inet. What is less common is for a party pean Union meetings by her persistent ef- Straujuma: Riga's Angela Merkel leader to deliver almost daily lectures like forts to get a good deal for Latvia's farmers. those Mr Renzihas fired at the government Although not a member of any party (she mains mayor of Ventspils and will now be since his election, painting it as representa- joined the conservative Unity Party, pre- back in the game-the Union of Greens tive of the old way of doing things. Mr sumably as a polite gesture, only on Janu- and Farmers is his political vehicle. Mr Letta,though no grey beard at 47,was first a ary 5th), she has been in the running ever Lembergs, one of Latvia's richest men, has minister in 1998.His main ally, Angelino since discussions over a new prime minis- long been on trial on charges of money Alfano, was Silvio Berlusconi's right-hand ter began after the sudden resignation of laundering and abuse of office. man before splitting last year from the me- Valdis Dombrovskis following a super- Besides keeping a diverse coalition to- dia tycoon to form his own party, the New market collapse in November. After Mr gether, Ms Straujuma's task is to reform Centre Right (NCO). Berzins rejected other candidates it was the health care and education, says Pauls Mr Renziwants to impose on the NCO a turn of Ms Straujuma, who is often com- Raudseps, founder of Ir, a weekly maga- formal pact, like that underlying the grand pared to Germany's Angela Merkel. zine in Latvia. Both have been neglected in coalition in Germany, but only for U-15 "The government should continue the the efforts to save the country from bank- months. Its centrepiece would be a reform same macroeconomic policy which has ruptcy. The new prime minister will not of employment law to give young workers been implemented so far," said Ms Strau- have long to make her mark: Latvians are permanent jobs, but with reduced protec- juma after her nomination. However pain- due to go to the polls in October. If Ms tion at the outset. The young mayor's ful, Mr Dombrovskis's austerity policies in Straujuma turns out to be as tenacious as strength lies in an implicit threat to bring the wake of the financial crisis in 2008-09 Mrs Merkel,she will fightto keep her job. _ down the government by withdrawing PO have led to a strong recovery.Latvia's econ- support. But that assumes he can com- omy has steadily improved over the past mand his lawmakers-and Mr Renzi sits at two years and is now growing at 4%,faster Italian politics the rightmost edge of the party he leads. than any other EU country. Average wages Refusing to apologise for the insult that have regained their level before the crisis. Left upset pushed Mr Fassina out of government, he Inflation is near-zero. For the first time said he was answerable not to party fac- since 2006, households' assets exceed tions, but to the 3m Italians who voted in a their liabilities. primary election last year that was open to Ms Straujuma is backed by a four-party all. Mr Renzi's following in the PO is prob- coalition consisting of the Unity Party, the ably more accurately reflected in the 39% right-wing National Alliance, the centre- ROME who backed him in a 20U leadership bal- A turbulent time for Italy's centre-left right Reform Party and the centrist Union lot that he lost to Mr Bersani. But even of Greens and Farmers, currently an oppo- NE word can make all the difference. those who supported him in December sition party, as well as a few independent O For the Italian left it was Chi? (Who?). could soon tire of his fault-finding. MPS. She is unlikely to use her majority to On January ath Matteo Renzi, the new That might be a reason for Mr Renzi to rock a boat that is sailing so smoothly. Even leader of the centre-left Democratic Party carry out his threat soon, forcing an elec- the controversial introduction of the euro (zo), was asked about a suggestion by the tion in which the fledgling NCO would on January 1Sthas gone well. According to deputy finance minister from the PO, Stefa- struggle for visibility as the PO squared off the latest Eurobarometer survey, Latvians' no Fassina. "Chi?" was his contemptuous against Mr Berlusconi's Forza Italia party. support for the euro has risen to 53%,close reply.Mr Fassina promptly resigned. The snag is that, after a Constitutional to the average in the EU. Thus began a difficult few days for the Court decision in December, Italy needs a Mr Dombrovskis's government was Italian left (Mr Renzi's predecessor, Pier- new electoral law before the next vote. free of the direct influence. of three oli- luigi Bersani, later went to hospital after And Mr Renzi probably needs Mr Berlus- garchs, who used to wield political power suffering a cerebral haemorrhage). Mr Fas- coni's help to draw one up. Though con- in Latvia. The parties associated with two sina mattered more than most ministers, victed of tax fraud and expelled from the of them were disbanded after the last elec- as keeper of the r-n's left-wing conscience Senate, the former prime minister still has tion, but the third, Aivars Lembergs, re- and an influence over the economic policy cards to play. _.
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