Can Italy's economists put theories into practice? - China

By Denial, China.org.cn, Mario Monti, successor to Silvio Berlusconi, is known as "Super Mario" and the "Italian Prussian." Monti acquired these monikers due to his tough stance against American corporate titans during his tenure as EU competition commissioner. Two weeks ago, "Super Mario" was assigned the extremely difficult role of "chief firefighter" for the deteriorating Italy economy. The markets, as well as Italian MPs, initially welcomed Monti, with the 10-year bond yield cooling down to 7% plus as proof. However, the yield has now resumed its upward trend, sending less optimistic signals to the world. Dreams are always more wonderful than reality, and perhaps Monti should remind the emotional Italian public of this. The Italian people have invested massive hopes in Monti's ability to reform and revive Italy's rigid economy. He is certainly trying hard to live up to these high, almost unrealistic expectations. Most of his new government ministers are university professors who are far away from Italy's political scene. There are two sides to this coin: These ministers, coming as they do from outside the world of Italian politics, are untainted by endemic corruption and political scandal and, therefore, are likely to be welcomed by the scandal-weary Italian public. Their theoretical expertise is also a plus. On the other hand, theory is not practice, and, due to their lack of political experience, they may not be politically mature or astute enough to guide Italy through these tough times. This same doubt could, of course, be leveled at Monti himself. In his first public appearance, Monti stressed his 18-month plan to "provide a respectful and hopeful future for Italian children." Beautiful wish! However, to achieve this, he needs political tactics to go with his undoubted economic expertise. The first test for Monti and his government is to gain parliamentary support, as this is what it means to be a Parliamentary Republic. Berlusconi is a case in point. Read Full: Can Italy's economists put theories into practice? - China.org.cn

Back To Top

Tell-Us