...The early lesson from this government is that the League and Five Star have very different economic constituencies. The latter is closer to the trade unions, and wants to strengthen the bargaining position of workers while supporting the low-paid and unemployed. The League represents many entrepreneurs from the richer North, and would prefer to cut everyone’s taxes. The split was laid bare in July, when Five Star leader Luigi Di Maio spearheaded a labor market reform that would have made it harder to hire workers on a temporary basis. The League helped water it down, after a backlash from parts of its voting base.
...If their marriage of convenience becomes too fractious, one of the two parties might even prefer an annulment – gambling for a better result in a new election
... it’s hard to feel optimistic about the kind of business environment that’s emerging, with the government seeking a more dominant role at the private sector’s expense.
...will show how far the League and Five Star actually care about the independence of Italy’s institutions. The fear is they want to use their electoral victory to impose their people on technocratic bodies that are meant to be insulated from politics. This would be a terrible sign for anyone who wants to invest in Italy.
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