yellow vests paris

The Euro-Establishment’s Fear of Populism

December 24, 2018

Economia, English, Notizie Brevi, Politica

Yellow Vests, Italian Budget Battles & Silent Labor Unions

By Andrew Spannaus
in Milan
Special to Consortium News

From the European Union’s standpoint, the historic levels of social unrest confronting French President Emmanuel Macron, one of its leading champions, came at a delicate moment in its dealings with Italy.

Since mid-September, the European Commission, the EU’s executive body, has been battling with Italy over its budget. The populist government in Rome—led by the Five-Star Movement, orM5S, and the League—have decided to stimulate the economy by giving money to the poor, lowering taxes and increasing public investment.

With an assist from financial markets that are penalizing Italian government bonds, the Commission has been threatening an “excessive deficit procedure” if Italy doesn’t reduce spending and resume measures to balance its budget. In theory this austerity policy will make the country more stable and efficient. But the last 10 years have demonstrated that cutting the budget and raising taxes have depressed economic activity, with the effect of making people poorer.

Read the article on Consortium News


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