In the Eye of the Storm: The Italian Economy and the Eurozone Crisis

Abstract

The eurozone crisis had a more significant and longer-lasting impact on Italy than on virtually any other member state, with the effects still visible a decade after. The extent of the shock was surprising in view of progress Italy had apparently made in the 1990s in terms of enhancing its capacity to meet the demands of European Monetary Union. The explanation for this traumatic economic experience lies in Italy’s deep, long-term, structural tensions which were placed under severe pressure during the 1990s and which were cracked open by the 2011 sovereign debt crisis. These have had long-standing economic effects as well as political ramifications in terms of a significant change in the Italy–EU relationship.     

Migration Crisis,Organised Crime and Domestic Politics in Italy: Unfolding the Interplay

ABSTRACT

Focusing on Italy in the years of the ‘migration crisis’ between 2013 and 2017, this article explores how migration, crime groups and the domestic politics of migration control became entangled in times of crisis. Departing from previous theoretical discussions, it builds a framework that combines crime groups’ actions with domestic political processes in host countries and explores how the crime-migration nexus shaped – and was shaped by – Italian migration policymaking. The article contends that in the context of crisis the nexus took on new forms and that Italian migration politics and policies served to foster rather than counter the phenomenon, in a continuous interplay between criminal practices and policy choices.     

Italian Politics in an Era of Recession: The End of Bipolarism?

Abstract

Italian politics have undergone momentous change in the 2007–2017 decade under the impact of the eurozone crisis, whose peak in 2011–2013 could be equated to the earlier watershed years of 1992–1994. The lasting impact of the upheaval in Italian politics in the early 1990s could still be felt in the decade of economic recession, but there were also new challenges prompted by a crisis that had its roots in international financial contagion and which unravelled under the shadow of both recession and austerity. The changes were of an economic, social, cultural, institutional, policy-oriented and political nature. If one central quintessentially political theme stands out by the end of this decade it is the apparent exhaustion of the quest for bipolarisation that was initiated in the early 1990s.     

Trade Unions and Employment Relations in Italy during the Economic Crisis

Abstract

Many of the usual assumptions about the impact of the economic crisis on trade unions and employment relations only partially fit the Italian case. Trade unions during the crisis showed resilience both organisationally and as important actors in economic and political life. Also, the national industry level reaffirmed itself as the key level in industrial relations. Explanations of these unexpected outcomes have to do with some features of all three actors of Italian employment relations. Trade unions have become over time a relevant actor not just in the industrial relations arena but in several other spheres of Italian society and politics. As to employers, small and medium enterprises (SMEs) have tended to prefer national sectoral-level agreements and set rather low wage standards, while employers’ associations have shown an organisational interest in preserving centralised bargaining where they play a role. Finally, governments have been too weak and short-lived to follow a consistent strategy of unilateral decision-making.     

The welfare systems of the Baltic states following the recent financial crisis of 2008–2010: expansion or retrenchment?

ABSTRACT

This article aims to uncover major social security system reforms that were implemented following the recent financial and economic crisis of 2008–2010 and the post crisis period. Additionally, it explores the dynamics of the socioeconomic situation during the last 10 years, looking at how Baltic states compare with each other and how they compare with other central and eastern European countries in the EU. The findings show that retrenchment is difficult even during times of crisis. Although the Baltic states were affected by the crisis, especially Latvia and Lithuania, their social security institutions did not experience any structural shift.     

European Banking Union to the Rescue? How Supranational Institutions Influenced Crisis Management in Italy

ABSTRACT

This article examines the management of the recent banking crisis in Italy. In particular, we investigate the changing coalitional dynamics among Italian banks with a view to identifying the conditions under which banks are more likely to share the costs of crisis management. We argue that banks’ preferences are significantly shaped by the institutional context within which they operate. In particular, the establishment of Banking Union in the European Union (EU) significantly weakened the traditional coalitional dynamics among Italian banks by injecting uncertainty about the distributional effects of crisis management policy solutions.     

Capturing Brazilian society in movement: from cordiality to circulation and “spaces between” in Maria Augusta Ramos’s Futuro junho (2015)

ABSTRACT

This article analyses Maria Augusta Ramos’s 2015 observational documentary Futuro junho (Future June), filmed in the Brazilian city of São Paulo in the lead-up to the 2014 FIFA World Cup. Taking as its starting point a connection, established by one of the film’s four main “characters,” or subjects, between Brazilian historian Sérgio Buarque de Holanda’s influential work on cordiality and the idea of circulation between public and private spheres, the article explores how circulation (economic, urban, media, and cultural) is portrayed in the documentary, as well as how it foregrounds both spatial and temporal movements. This is complemented by a discussion of the film’s own circulation through attention to critical reviews which have debated the film’s success in documenting, in a timely way, a national conjuncture characterised by crisis and conflict as well as unpredictability and rapid change. The article argues that by imbricating and intertwining multiple cultures of circulation, and by drawing attention to the varied economic and urban experiences of its characters and the spaces between them, Futuro junho captures a Brazil in flux.     

The Future of the Chinese Economy: Four Perspectives

ABSTRACT

This article studies the future prospect of the Chinese economy using four different perspectives: neo-classical, Marxian, world-system and climate stabilisation. While the neo-classical perspective suggests that China can maintain a relatively decent pace of economic growth for decades to come, the Marxian analysis finds that the Chinese economy will confront a major crisis in the coming years due to internal contradictions of capitalist accumulation. The world-system analysis suggests that there has been a “ceiling of development” that historically has limited the scope of development for the great majority of the world population and China will hit this “ceiling of development” within about a decade. Moreover, if China were to fulfil its climate stabilisation obligations, it may prove to be impossible for the current system to maintain economic and political stability.     

The Italian Welfare State in the Crisis: Learning to Adjust?

Abstract

After a decade of inertia, that left it unprepared to withstand the blow of the great recession, the Italian welfare state has witnessed significant changes since 2012. Externally driven consolidation in the wake of the sovereign debt crisis spurred yet another wave of social policy reforms after that of the 1990s. These reforms did not however invariably entail retrenchment. Both the Monti and the Renzi governments combined liberalisation with expansion of social rights, particularly in income support. As a result, the Italian welfare state looks more comprehensive than it was before the crisis. At the same time, there was no overall strategy of welfare modernisation based on coordinated social investment measures. The changes in Italian social policy since the outburst of the great recession highlight the importance of domestic politics interacting with external drivers of change. They also facilitate an assessment of the opportunity structures for further reforms in a political system that appears to be veering again towards consensus democracy.     

Austerity versus pragmatism: a comparison of Latvian and Polish economic policies during the great recession and their consequences ten years later

ABSTRACT

Despite many initial similarities, Latvia and Poland represent two opposite extremes in terms of practical and theoretical approaches to the economic crisis. The Polish government applied a ‘pragmatic’ approach to fight the recession, based on expansionary fiscal policies and currency devaluation. Conversely, the Latvian administration opted for the Austerity and internal devaluation strategy. Consequently, the objective of this paper is to analyze, from the perspective of political economy, the strategies chosen for the economic crisis management and their effects in Latvia and Poland, in light of the main EU narratives about its causes and responses. The research contends that the economic performance of both countries during the crisis was due to their respective economic structures. On the one hand, Poland is a bigger, more diversified and industrialized economy, with fewer channels of vulnerability and could apply expansionary policies effectively. On the contrary, the economic model established in Latvia generated a high exposure to external shocks, in particular, with a double vulnerability in the banking sector. In this context, due to internal and external motives, the Latvian government decided to apply the austerity and internal devaluation strategy, worsening the economic decline and the subsequent recovery.     

Stay or Go? Ecuadorian Immigrants in Spain in Times of Crisis

This article studies how the economic crisis affects Ecuadorian immigrants' decisions on staying in Spain or returning to their home country. Before the crisis, Ecuadorians were one of the most significant migrant groups in Spain in terms of volume and degree of settlement. The crisis has destabilised their situation and modified their migratory projects in different ways. This article presents the three main choices facing Ecuadorian immigrants during the crisis: permanence, wait and see, and return/re‐migration. The analysis focuses on how the decision‐making process is carried out and on the different factors that lead Ecuadorians to choose each option.     

Protest in Italy in Times of Crisis: A Cross-Government Comparison

Abstract

Using protest event analysis methodology and conceptual and theoretical toolkits developed in social movement studies, this article analyses protest mobilisation during the period of the height of the economic crisis in Italy (2009–2014) by comparing the protest trends in diachronic and comparative perspectives over a period of four different governments. Data show that the Italian anti-austerity protest arena was dominated by ‘old actors’ (the traditional trade unions) and was not able to produce the strong social and political coalitions that emerged in other South European countries. This was due to the specific relationship that developed between civil society and political parties that shaped the forms of anti-austerity mobilisation in this period.     

Eurosceptic yet pro-enlargement: the paradoxes of Hungary’s EU policy

Abstract

The present article seeks to explore the main aspects of Hungary’s EU enlargement policy. It reveals a tension between the government’s committed support for EU enlargement and its critical stance towards the EU on several other fronts. However, on the basis of liberal intergovernmentalist theory, this article argues that this is not a real contradiction since enlargement to the Western Balkans serves Hungary’s national interests in spite of its government’s Euroscepticism. At the same time, Hungary’s questioning of the basic values of the EU as a community of liberal democracies has weakened the legitimacy of Hungarian interventions in favour of speeding up EU enlargement. While Hungary has become ever more isolated from the ‘old’ EU member states, more recently, its government managed to increase its leverage in the Western Balkans and central Europe in the context of the migration crisis.     

Electoral Reform as an Engine of Party System Change in Italy

Abstract

After more than forty years of proportional representation, in 1991 Italy embarked on a period of electoral law revision. The ongoing debate about how to engineer an electoral system capable of producing the preferred political outcomes stands out against the stasis in constitutional reform, most recently demonstrated in the rejection by popular referendum of Matteo Renzi’s package of reforms. The extent to which the different electoral reforms have had an impact on Italian politics, especially following the 2005 electoral legislation, can be evaluated by analysing the changing Italian party system over the past decade and beyond in terms of its morphology, dynamics, and party/parliamentary group switching. The 2005 electoral reform has had a clear effect on Italian politics and on the party system, but that effect is unlikely to endure given the highly controversial new electoral law that came into force in 2017.     

Voters without a Party: The ‘Long Decade’ of the Italian Centre-Right and its Uncertain Future

Abstract

Following the corruption scandals of the early 1990s, the birth of the electoral coalition led by Silvio Berlusconi, and its occupation of government in 1994, 2001 and 2008, was interpreted by many as a sign of a new era of success for the Italian centre-right. Yet, after narrowly losing the 2013 national elections, the centre-right appears to have fallen into a political abyss. While opinion polls suggest that its potential electorate is still wide, the former allies that made up the coalition have been fragmented and weakened by a series of splits, leaving the centre-right divided into a more moderate component and an openly populist one. The centre-right’s old ruling elites have lost credibility, but the new younger leaders, like Matteo Salvini and Giorgia Meloni, are not able to re-unify the former coalition. The centre-right has been riven by several factors that explain its difficulties during the decade of the economic crisis: the personalisation of its leadership, factionalism, a divergence of programmes, a failure of institutionalisation and ongoing corruption and legal problems. These factors also look set to condition its political future.     

Contextualising the ‘Responsibility to Protect’ in Darfur

ABSTRACT

This article argues for a thorough contextual analysis based on understanding local, regional and international politico-economic linkages in the Sudan, in order to ground prospects of the ‘Responsibility to Protect’ (R2P) doctrine in the ongoing crisis in Darfur. The R2P framework was crystallised by the International Commission on Intervention and State Sovereignty (ICISS) in 2001. It was adapted and subsequently endorsed by United Nations (UN) member states during the 2005 UN World Summit. The R2P ostensibly provides normative benchmarks on how states should respond to the quadruple human rights violations of genocide, war crimes, crimes against humanity and ethnic cleansing. Indeed, there is debate on whether the prevailing crisis in Darfur constitutes a test case for the application of the R2P. However, such debate is misplaced on two grounds: first, it glosses over the inherent conceptual deficiencies of the R2P, as presently constituted. More importantly, such debate is primarily inspired by reactionary and externalising influences based on past international failings, like Rwanda (1994) and Bosnia (1993). Hence, it is argued that the starting point of analysing the Darfur crisis should be a thorough investigation of how local, regional and international politico-economic factors have historically worked in an orchestrated fashion to trigger and sustain the crisis in the Sudan. Knowledge and an understanding of such historical specificity is a requisite for determining the relevance of the R2P in Darfur. The R2P, as presently constituted and practised, does not address this gap.     

The council of expediency: crisis and statecraft in Iran and beyond

Abstract

Giorgio Agamben argues that in contemporary governance the use of ‘emergency’ is no longer provisional, but ‘constitutes a permanent technology of government’ and has produced the extrajudicial notion of crisis. The engendering of ‘zones of indistinction’ between the law and its practice is what Agamben defines as a ‘state of exception’. This article adopts the notion enunciated by Agamben and revisits it in the Islamic Republic of Iran. There, the category of crisis has been given, firstly, a juridical status through the institution of maslahat, ‘expediency’, interpreted in a secular encounter between Shi^ca theological exegesis and modern statecraft. Secondly, crisis has not led to the production of a ‘state of exception’ as Agamben argues. Instead, since the late 1980s, a sui generis institution, the Expediency Council, has presided and decided over matters of crisis. Instead of leaving blind spots in the production of legislative power, the Expediency Council takes charge of those spheres of ambiguity where the ‘normal’ – and normative – means of the law would have otherwise failed to deliver. This is a first study of this peculiar institution, which invites further engagement with political phenomena through the deconstruction and theorization of crisis politics.     

After and Beyond Amoral Familism: The Impact of the Economic Crisis on Social Capital Italian-style

Abstract

The economic crisis that began with the great crash of 2008 has brought about a significant increase in inequality in Italy between individuals and families as well as between different geographic areas. A higher degree of inequality has had negative effects on social capital, reducing so-called bridging and linking elements of social capital while strengthening bonding elements, with a concomitant decline in civic culture. These effects can be dangerous for democracy, in so far as they lower the citizens’ trust in institutions. Since social capital is created as well as destroyed by political and social actors, a relevant question is whether these actors have had a role in transforming social capital into trust in institutions. From an analysis of the changes that have taken place in the Italian political system, it would appear that a significant segment of the political system has destroyed more institutional social capital than it has helped to create.     

The Italian Five Star Movement during the Crisis: Towards Normalisation?

Abstract

The Movimento Cinque Stelle (M5S) represents the most significant occurrence in Italian party politics during the economic crisis that commenced in 2008. Founded in 2005, the party caused a major upset at the 2013 national elections, with a subsequent major impact on the Italian party system, which is analysed along four dimensions: amount of change; number of relevant competitors; alteration of the political space; and degree of nationalisation. The sudden electoral success, in turn, presented the party with a number of challenges that forced it to adapt its organisational nature. Moreover, the anti-establishment nature of the M5S is questioned by its activities in the legislative arena. As with other outsider parties, this poses the dilemma of being part of the establishment while criticising it. The M5S has thus been forced to redefine its main goals and style of communication in order to adapt to the new institutional environment without losing the palingenetic aspiration of its original message.     

(Ine)quality of life: Lithuanian labor migration to Sweden during the economic crisis and its aftermath, 2008–2013

ABSTRACT

This article connects micro and macro scales of inequality to Lithuanians’ decisions to depart to Sweden during the economic crisis with austerity measures and its aftermath (2008–2013). This period revealed unequal opportunities regarding the quality of life that were largely created by the gradual re-commodification of labor as well as unaddressed income and social inequalities which had existed since the 1990s. Nevertheless, macro inequalities did not directly lead to the exit decision. Rather, this was bound to the individual’s perception of the leaving opportunity and (possible) quality of life for oneself and one’s family across time and space.