Italy is facing profound change after the last parliamentary elections: The centre-right alliance of the right-wing populist parties Fratelli d’Italia (FdI) and Lega, as well as the centre-right party Forza Italia, won an absolute majority in both chambers of parliament. From economic policy to cooperation with the EU and the rule of law to the Russian war of aggression on Ukraine – the election victory raises many questions about the country’s future course.
Economy as the biggest challenge
Italy’s economy has many competitive advantages, being the second-largest net exporter of goods in the EU after Germany. However, Rome faces significant problems, including the North-South economic divide, the slow pace of growth, and the enormous public debt of about 150 per cent of gross domestic product (GDP). The labour market and the social situation also pose challenges. According to the latest Eurostat data, in 2021 more than 23 per cent of 15- to 29-year-olds in Italy were neither in education nor in employment or training – the highest figure in the EU.
The new government will have to function in …read more
Source:: German Institute for International and Security Affairs