The Stakes of Italy’s Referendum

Italy votes December 4 on a referendum on constitutional reforms –including reducing the size of the upper house of parliament and reinforcing separation of powers. Prime Minister Matteo Renzi has promised to step down if voters reject the referendum. “A defeat for Renzi will be read as a victory for Italy’s two major populist parties: the Lega Nord and the larger Five Star Movement, led by the comedian Beppe Grillo,” explains Mario Margiocco for Project Syndicate. He notes that leaders of the two parties lack political experience and blame Europe for Italy’s mistakes in amassing so much debt, more than 132 percent of gross domestic product, whole offering big promises that would only add more strain to budgets. “The two parties are not allied, but both are nurtured by anti-establishment sentiment and favor “national solutions” to Italy’s problems – beginning with a return to the Italian lira.” By rejecting reforms, voters would dismiss central government efficiency and join a wave of euroskepticism. – YaleGlobal