BeBo won, Italy lost

Italy badly needs reform and won’t get it soon

In the enclosed pdf we report and discuss:

a) productivity per hour 2001-06 growth: 0% Italy, 1.3% Europe15, 2.2% US, >4% South Korea (OECD, WSJ)

b) what we might expect from the incoming BEBE-BOBO government (FT)

c) 103% debt/GDP, at 0.50 spread on Germany will cost more and more, in the financial turmoil (FT)

d) dreams of un Vero Partito Liberale; we, un Autentico Partito Socialista. For the time being, and first time in Italian history, we have no socialist nor communist MP or Sen.

Meanwhile, ALITALIA is bankrupt, with little cash and threatened a stop by the International flight authority. The WSJ was the last newspaper in the world to support Berlusconi, until one month ago: when they paid more attention and discovered he never was a free marketeer, just an artificial monopolist by law.

Air Silvio

(From The Wall Street Journal Europe)
April 4, 2008

It’s rare for a politician to spark a serious crisis before he’s even won office. That’s what Silvio Berlusconi  

[Silvio Berlusconi]

has done with Alitalia. If, as expected, he wins a third term as Prime Minister next weekend, Mr. Berlusconi will deserve every headache Italy’s flag carrier brings him.

Alitalia is bleeding about €1 million a day and may not survive the summer unless restructured. Rome wants to get things started by selling its 49.9% stake in the airline. But Air France-KLM, the only serious bidder, walked away from the table Wednesday.

(…)  EU regulators have ruled out another public bailout.

The unions wouldn’t have had much leverage here if it weren’t for Mr. Berlusconi.  The center-right leader has railed against the Air France-KLM bid during the campaign. He says that Italian businessmen are lining up to help rescue Alitalia – though he refuses to identify them.

Published in: on April 15, 2008 at 11:44 am  Leave a Comment  
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