In my latest story for the Diplomatic Courier, I argue that Italy’s economic north-south divide has become political.
The far-right League, which Matteo Salvini has transformed into Italy’s version of the National Front, is the biggest party in the north, where incomes are 10-14 percent above the European average. The anti-establishment Five Star Movement is the biggest party in the south, including on the islands of Sardinia and Sicily, where incomes are barely above the level in Greece.
These two parties now rule Italy in a coalition government. Read more
Since President Donald Trump berated America’s closest allies after the G7 summit in Canada this weekend, it’s worth remembering why the Atlantic alliance matters so much — to Europe as well as the United States. Read more
Technology Could Help Mend Italy’s North-South Divide
The results of the 2018 election in Italy reflected two main economic realities: the economic struggles in Italy relative to northern Europe and the economic struggles in southern Italy relative to northern Italy. The former helped anti-establishment parties to gain a large share of the country’s vote. The latter resulted in Lega Nord and center-right parties performing well throughout much of the north of Italy and the Five Star Movement performing well in the south of Italy.
In geopolitics — the school of thought that argues that geography is the most significant or fundamental element in politics — these two economic realities have the same obvious source: mountains. Italy and southern Europe are much more mountainous than northern Europe and southern Italy is much more mountainous than northern Italy.
Mountainous regions tend to be much poorer than non-mountainous regions. Italy is no exception. Read more
Europe Doesn’t Know How to Handle Trump, Macron Runs Tight Operation
Stephen Walt argues in Foreign Policy that the diplomatic crisis around the Iran nuclear deal shows European leaders don’t know how to handle an American bully:
[I]nstead of getting tough with Trump and warning him that Europe would both stick to the deal and defy any subsequent US effort to impose secondary sanctions on them, [France, Germany and the United Kingdom] chose to mollify and flatter Trump instead.
It seems to no avail.
It pains me to admit it, but Walt has a point:
[T]he European response to Trump shows how successfully the United States has tamed and subordinated the former great powers that once dominated world politics. After seventy-plus years of letting Uncle Sam run the show, European leaders can barely think in strategic terms, let alone act in a tough-minded fashion when they are dealing with the United States.
I do think this is slowly changing. Trump is a wakeup call. The EU is rushing new trade agreements with Japan and Mexico. France is leading efforts to deepen European defense cooperation outside NATO. The Balts and Scandinavians are remilitarizing.
But deferring to America is a hard habit to kick. Read more
Macron’s German Challenge, What America Should Attempt in Syria
Eric Maurice writes in EUobserver that French president Emmanuel Macron’s biggest challenges comes from Berlin, where Angela Merkel and her conservative party are skeptical of plans to create a European Monetary Fund and establish a European deposit insurance scheme to protect savers:
Although the two plans were initiated by the EU before Macron took them, their rejection would signal a clear rebuttal of the French president’s more ambitious proposals for the longer term.
Merkel hasn’t ruled out a European Monetary Fund, but — like the Dutch and other deficit hawks in the north of Europe — she wants it to be an “intergovernmental”, as opposed to an EU-led, institution.
Germany isn’t in favor of creating a eurozone budget and finance minister either.
I predicted in September that these would be the most difficult items on Macron’s wishlist, but other things are still doable: harmonizing corporate tax rates and asylum procedures, creating an EU military intervention force, reforming the Common Agricultural Policy. Read more