Of course, one could argue that other countries are experiencing similar problems, but it would be a mistake to let Draghi off the hook. Meanwhile, almost 100,000 small and medium enterprises (SMEs) are at risk of insolvency - a 2% increase compared to last year. Many of these are in work, and that number is bound to increase as real wages in Italy continue to fall at the highest pace in the bloc. Interest rates on Italian government bonds have also been steadily climbing ever since Draghi came to power, rising four-fold under his watch today they stand at the highest level in almost a decade.Īnd this “polycrisis” has taken its toll on Italian society: 5.6 million Italians - almost 10% of the population, including 1.4 million minors - currently live in absolute poverty, the highest level on record. Italy is also experiencing one of the fastest-growing inflation rates in Europe - which is currently at 8.6%, the highest level in more than three decades. The latest European Commission macroeconomic forecast predicted that Italy will experience the slowest economic growth in the bloc next year, at just 0.9%, owing to a decline in consumer spending due to rising prices and lower business investment - a result of rising borrowing and energy costs, as well as disruptions in the supply of Russian gas. Draghi, they said, simply by virtue of his “charisma”, “competence”, “intelligence” and “international clout”, would keep bond markets at bay, enact much-needed reforms, and relaunch Italy’s stagnant economy.Īlas, reality hasn’t exactly lived up to expectations: Draghi leaves behind a country in tatters.
The tone of the discussion was captured well by the powerful governor of the Campania region, Vincenzo De Luca (PD), who compared Draghi to “Christ” himself.Įveryone agreed: a Draghi government would be a blessing for the country, a final opportunity to redeem its sins and “make Italy great again”. Virtually every party in the Italian parliament - including the two formerly “populist” parties that won the elections in 2018, the Five Star Movement and the League - offered their support. When he was nominated as Italy’s prime minister at the beginning of last year, Europe’s political and economic elites welcomed his arrival as a miracle. Mario Draghi’s defenestration has left the Italian - and indeed international - establishment reeling in horror.
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