Italy at the crossroads? | Brunswick Group

Italy at a crossroads?

Brunswick looks at the main factors influencing the forthcoming general elections in Italy, possible outcomes and their impact on business

Italians are heading to vote for the country's new Parliament and leadership on March 4 in what is regarded as a crucial test for the European Union at a time when it is undermined by a rise of Europscepticism, waves of national separatism and poor management of the migration crisis. International investors are also carefully looking at the possible outcomes, as the country is regaining attractiveness on the back of an incipient economic recovery, which is at its strongest since 2010, with declining unemployment, a banking system emerging from troubled waters and a positive push towards reforms.

The vote's outcome is uncertain, and the ballot is marked by three main characteristics: a brand new electoral system; the crisis of traditional political parties and a campaign seen as failing from all sides to address some key hurdles such as lowering the country's heavy public debt, simplifying a dysfunctional bureaucracy and a complex legal system.


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