EUROPEAN leaders have praised the outgoing Italian Prime Minister, Mario Monti, and encouraged him to stand in next years elections. But Italians are less enthusiastic.
Mr Monti, who has resigned after 13 months in office, would win at most 20 per cent of the vote in elections expected in February, said Maurizio Pessato, the vice-president of polling company SWG. Sixty-one per cent do not even want him to run, an SWG poll found on December 14.
Monti has managed to get policies pushed through because he was seen as super partes, Mr Pessato said, using the Latin term for above the political fray. If he chooses to run, he has to choose his partes.
Mr Monti took over last year just as Italy risked becoming the next victim of Europes debt crisis under the former prime minister Silvio Berlusconi. While he has overseen a recovery in Italys bonds and repaired its standing abroad, his austerity policies saddled Italians with higher taxes, rising unemployment and a shrinking economy.
A former European Union commissioner, Mr Monti announced his intention to quit on December 8 after Mr Berlusconis People of Liberty party withdrew support for his cabinet of unelected technocrats.
After resigning, Mr Monti, an economist who has never sought elected office, had to decide whether to stand aside or join the fray. He is to use a news conference, scheduled for Sunday morning in Rome, to announce plans to run at the head of a coalition of centrist parties, the newspaper La Repubblica said.
While Mr Montis role has been praised by the German Chancellor, Angela Merkel, and other Euro-pean leaders such as Jean-Claude Juncker, who heads the group of euro-area finance ministers, his policies find less favour at home.
Mr Monti imposed ?20 billion ($26.5 billion) in austerity measures. He increased taxes, cut spending, raised the retirement age and changed the labour laws to make sacking easier.
The policies have left Italy on track to cut its deficit to within the EU target of 3 per cent of output this year. They deepened Italys fourth recession since 2001, pushing the jobless rate to a 13-year high of 11.1 per cent. The euro areas third-biggest economy will contract by 2.1 per cent this year and 0.6 per cent next year, the employer lobby Confindustria forecast this month.
Monti put out the fire but he used the water Italians were drinking, said Giovanni Orsina, of Luiss Guido Carli University in Rome.
Mr Monti is being courted by a group of small parties led by the Catholic politician Pier Ferdinando Casini and the Ferrari chairman Luca Cordero di Montezemolo.
Mr Berlusconi has pledged to endorse Mr Monti if he heads a coalition with his People of Liberty party and its Northern League ally.
Frequently Asked Questions about this Article…
Is Mario Monti planning to run for Italy’s next election?
According to the article, Mr Monti was expected to use a news conference in Rome to announce plans to run as head of a centrist coalition (reported by La Repubblica). He had announced his intention to quit on December 8 after his unelected technocrat cabinet lost support.
How popular is Mario Monti with Italian voters right now?
A SWG poll dated December 14 found Monti would win at most about 20% of the vote and that 61% of respondents did not want him to run—indicating weak domestic popularity despite praise from some European leaders.
What austerity measures did Monti implement and how large were they?
Mr Monti imposed roughly €20 billion in austerity measures. The package increased taxes, cut spending, raised the retirement age and changed labour laws to make sacking easier, according to the article.
How have Monti’s policies affected Italy’s economy and public finances?
His measures have put Italy on track to cut the deficit toward the EU target of 3% of output, but they also deepened a recession (Italy’s fourth since 2001), pushed unemployment to a 13‑year high of 11.1%, and prompted Confindustria to forecast GDP contractions of about 2.1% this year and 0.6% next year.
What have European leaders said about Monti, and why does that matter for markets?
European leaders such as German Chancellor Angela Merkel and Jean‑Claude Juncker praised Monti. The article notes he repaired Italy’s bonds and its standing abroad, which matters to investors because improved international confidence can help stabilise bond markets and sovereign funding conditions.
Why did Monti resign as prime minister after 13 months in office?
Monti resigned after Silvio Berlusconi’s People of Liberty party withdrew support for his cabinet of unelected technocrats. He announced his intention to quit on December 8 and then faced the decision whether to step aside or enter electoral politics.
Who is courting Monti and what coalition options are mentioned?
The article says Monti was being courted by a group of small parties led by Pier Ferdinando Casini and Luca Cordero di Montezemolo. Silvio Berlusconi pledged he would endorse Monti if Monti headed a coalition that included Berlusconi’s People of Liberty party and its Northern League ally.
What should everyday investors watch about Monti’s possible candidacy and Italy’s markets?
Investors should monitor Monti’s public announcement and coalition developments, plus market responses in Italian bond yields and fiscal policy direction. The article highlights that Monti had previously helped repair Italy’s bonds but that his austerity measures have affected growth and unemployment—factors that can influence market sentiment.
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