For centuries, Italy has produced some of the most renowned scientists, artists, literary geniuses, saints and sinners. Unfortunately, its record in delivering honest, pragmatic national politicians is not so enviable even if Niccolò Machiavelli, arguably the most influential political philosopher, was Italian.
Contemporary Italian politicians have, of course, performed remarkably well when serving in the EU’s governance structures. Mario Monti and Romano Prodi were among the best politicians to serve in the European Commission in the last two decades.
Political intrigue is the bedrock of the Italian political system. For decades Italy has been mismanaged by politicians of every political colour who have honed the fine art of survival. Neo-fascists have reinvented themselves and still survive today in the Brothers of Italy party led by Giorgia Meloni, currently one of the most popular leaders.
But the expert in using political intrigue must be former prime minister Matteo Renzi. A few weeks ago, he withdrew his party for the former prime minister’s coalition on the pretext that the government was mismanaging the COVID crisis.
Renzi’s future is indeed bleak. A few months ago, the Italian electorate, tired of most of its politicians’ misbehaviour, voted to reduce the number of parliament members from 945 to 600. Opinion polls indicate that, should an election be held now, Renzi’s small splinter party would probably be eradicated from the Italian political landscape.
If one person can succeed in making Italy a fully functional democracy, it must be ‘Super Mario’
Interviewed on CNN, Renzi defended his irresponsible decision to inject uncertainty in the political outlook just when Italy badly needs strong political leadership. Renzi rode the high horse of good political behaviour by claiming that at times of crisis Italy needs a person of vision, brazenly implying that he was that person.
The uncharismatic but most upright Italian President Sergio Mattarella did not want to let Renzi go very far with his irresponsible political game. He dumped the once young rising star of the then comatose Partito Democatico and appointed the 73-year-old former president of the ECB, Mario Draghi, to lead a national unity government.
This development has once again shown how youth is no guarantee of good governance in politics. In times of crisis, various electorates in democratic countries have put their trust in septuagenarian politicians known for their strength of character and uprightness rather than for their superficial youthful appearance.
Many political analysts argue that Draghi, who almost single-handled saved the euro after the 2008 financial crisis, will be another technocrat that will become a victim of the Italian dysfunctional political system. Monti’s short experience in Italian politics seems to be an ominous precedent that does not augur well for technocrats called in to save the country when facing chaotic situations.
Ignazio Visco, Italy’s central bank governor, distils what is wrong with Italian, and some would add most Mediterranean, politics. In a recent speech, he said that in Italy “in the selection of managers, family background, social and political connections often appear to hold more weight than competence, managerial skills and education”.
Visco went further and added: “This also tends to hamper corporate performance due to the lack of openness to external talent and modern management practices, leading to lower firm efficiency and weak propensity to innovate.”
Draghi’s ability to succeed in the most challenging situations must not, however, be underestimated. Lorenzo Bini Smaghi, who worked with Draghi at the Italian Treasury and the ECB, says his “greatest achievement was not so much to say that he would do ‘whatever it takes’ to save the euro, but it was getting Angela Merkel to say nothing and remain supportive – this shows he is very skilful politically”.
Renzi was partially right when he claimed that the government was not managing the medical crisis well enough. But the biggest challenge that Draghi will be facing in the coming year is ensuring that the €200 billion of EU funds spread over five years do not drain away in waste and corruption. Italy critically needs to raise its productivity as well as improving its public administration and justice system.
Draghi’s personal background is one that should inspire confidence in those who believe that a genuine sense of duty to serve the country is the most necessary qualification for a prime minister. ‘Super Mario’, as he is affectionately called by his admirers, is possibly Italy’s last hope of reforming its underperforming economy.
Draghi may well be managing a ‘mission impossible’. But if one person can succeed in making Italy a fully functional democracy, it must be ‘Super Mario’.