Italy: Parliament inches towards approving electoral reform | Reuters

Italian lawmakers edged closer on Tuesday to approving a new electoral law seen as a test of new Prime Minister Matteo Renzi’s ability to enact broad structural reforms needed to end government instability in Italy. Overhauling the complicated voting system blamed for leaving Italy with a deadlocked parliament has been a top priority for Renzi since he became leader of the main centre-left Democratic Party (PD) last year. The new law, designed after an agreement between Renzi and centre-right leader Silvio Berlusconi, is intended to produce a clear winner able to govern without the kind of unwieldy cross-party coalition left by last year’s inconclusive election.

Italy: Grillo cries foul over electoral reform plans | GlobalPost

Beppe Grillo, the former comic who leads Italy’s anti-establishment 5-Star Movement, on Thursday hit out against plans to reform the country’s voting rules, describing them as tailor-made to block his party’s rise. “The only point of this electoral reform proposal is to block us because we are the danger to the system,” Grillo, whose party won a quarter of the vote at last year’s national election, told a gathering of the foreign press in Rome. The center-left’s dynamic new leader Matteo Renzi this week drew up a plan to change the voting rules blamed for Italy’s chronic political instability after reaching a widely contested deal with center-right leader and former prime minister Silvio Berlusconi. The 5-Star Movement, which espouses an eclectic mix of green and anti-establishment policies and wants a referendum on Italy’s euro membership, has stayed in opposition since the February 2013 vote and refuses to collaborate with the left-right coalition government.

Italy: Renzi outlines electoral reform plan, defies critics | The Star Online

Italian centre-left leader Matteo Renzi promised on Monday to reform an electoral system blamed for creating chronic political deadlock, defying party critics who had attacked him for sealing a deal on the proposals with arch-enemy Silvio Berlusconi. The 39-year-old mayor of Florence, who won the leadership of the Democratic Party (PD) in December, said he would eliminate the fragmentation that has made it impossible for successive Italian governments to survive a full term in office. “We are saying no to giving small parties the power of holding us hostage,” he told a meeting of the PD party leadership, which approved the proposals by 111 votes in favour with 34 abstentions but no votes against, despite criticism from some on the left of the PD. “I don’t rule out alliances but only if they’re made for governing, not just winning an election,” he said, adding that settling the thorny issue of voting rules would clear the way for vital economic reforms.

Italy: Top court rules electoral law breaches constitution | Rueters

Italy’s electoral law is unconstitutional, its top court ruled on Wednesday, piling pressure on political parties to reform a system blamed for creating parliamentary deadlock. Most politicians agree, at least in public, that the electoral rules which helped produce a hung parliament after February’s national vote must change to give Italy a chance of forming a stable government. But despite repeated exhortations from business leaders, union chiefs and President Giorgio Napolitano, progress on voting reform has long been blocked by parties worried that a new system could damage their electoral chances. “Now there is no more room for excuses from anyone, we have to move, quickly, to change the law,” said Interior Minister Angelino Alfano, whose breakaway group from Silvio Berlusconi’s centre-right is a key part of the fragile ruling coalition. The ruling is not retro-active and therefore does not affect the status or validity of the current parliament, a source close to the constitutional court told Reuters.

Italy: Letta prepares to tackle Italy’s voting law stalemate | Reuters

With Silvio Berlusconi now out of parliament, Italian Prime Minister Enrico Letta is under pressure to overhaul a voting law blamed for dragging Italy into political and economic stalemate after the last election. Letta was appointed to lead an unwieldy government of left and right forces after a vote in February this year yielded no clear winner. When he named the 47-year-old centre-left politician, President Giorgio Napolitano gave him the task of overhauling a dysfunctional political and justice system that has stifled Italy’s economic growth for years. Letta’s administration was supposed to repair the system to prevent chronic political instability. The ripple effects of Berlusconi’s legal battles – in particular the lead-up and aftermath of the former premier’s conviction for fraud in August – largely sidetracked the government during its first seven months, however. That disruption has ostensibly subsided after Berlusconi’s ejection from the Senate.

Italy: President hopes to solve political crisis without new vote | Reuters

Silvio Berlusconi on Monday faced dissent within his People of Freedom Party, complicating his plans to bring down Prime Minister Enrico Letta’s coalition government. But even if Letta survives a confidence vote on Wednesday the prospects for stability and reform in Italy look more fragile than ever as he will face a larger and stronger opposition backed by Berlusconi’s media empire. Letta’s hopes of survival appear to rest on some 20 senators from Berlusconi’s party, who are unhappy with his shock decision on Saturday to withdraw his ministers from Letta’s government. Italian shares and bonds recovered some of their losses on financial markets after a party source told Reuters the group of PDL moderates may be ready to back the government and break away from the PDL if Berlusconi does not soften his stance. However, whether the dissidents are actually prepared to back Letta remains to be seen. They did not speak out at a PDL meeting on Monday where Berlusconi called for unity, repeated that the party must push for early elections and did not open any internal debate, according to lawmakers present.

Italy: Berlusconi conviction spells trouble for Italy’s fragile government | The Globe and Mail

While many Italians were delighted that Silvio Berlusconi was sentenced Monday to seven years in prison for paying for sex with an underage woman, many more did not really care. They have seen this film dozens of times before. Mr. Berlusconi, who was Italian prime minister three times before he was effectively ousted in 2011 at the height of the debt crisis, has always been one step ahead of the law. He has been endlessly prosecuted and, only last month, an appeals court upheld his four-year prison sentence for a tax-fraud scheme. In all of these cases, he pleads innocence, blames his woes on left-wing conspiracies and overzealous prosecutors, and unleashes his armies of lawyers to set the appeals machine in motion. So far, it has worked. Mr. Berlusconi has never seen the inside of a prison cell and probably never will. Appeals can take years and, in Italy, old men tend not to spend their last years behind bars. He is 76 and looks his age. Still, Monday’s verdict could have serious political repercussions at a time when Italy, which is in deep recession amid soaring unemployment, is desperate for a stable government that can keep economic reforms alive. He remains the head of the People of Freedom party (PdL), which supports the coalition government of Enrico Letta, who became prime minister in April after February’s inconclusive election. If Mr. Berlusconi withdraws his support for the government, it would come crashing down.

Italy: Rome Mayor Election Tests Berlusconi Effect On Voters | Huffington Post

Italian voters were choosing mayors in Rome and other municipalities Sunday in balloting, whose results will be interpreted as a test of ex-Premier Silvio Berlusconi’s political influence with possible repercussions on the national government. Media mogul Berlusconi campaigned for his center-right party’s candidate in Rome, incumbent Gianni Alemanno, who is trying for a second term in a runoff against former transplant surgeon Ignazio Marino, who is backed by the center-left. Alemanno trailed in the first round two weeks ago in Italy’s capital. In his first run for the office, in 2008, Alemanno also trailed in the first round, but mounted a strong comeback to win in the runoff. Marino’s and Alemanno’s parties are the main partners in a coalition of bitter rivals in Premier Enrico Letta’s 5-week-old government, and are struggling to spur economic growth in the recession-mired country.

Italy: Italy’s new prime minister | The Economist

It is the most famous quote in modern Italian literature, because it captures so well the cynicism and conservatism of modern Italian politics. “If we want everything to remain as it is,” says Tancredi in Giuseppe di Lampedusa’s “The Leopard”, “everything needs to change.” For once, Italy’s politicians have turned the saying on its head. On April 20th they arranged for things to stay as they were in order to get them to change. After failing to find agreement to elect a new president, the heads of Italy’s two leading mainstream parties, Pier Luigi Bersani of the Democratic Party (PD) and Silvio Berlusconi of the People of Freedom (PdL) movement, went to the 87-year-old incumbent, Giorgio Napolitano, and begged him to stay on. Unsurprisingly, given his age, Mr Napolitano had discounted a second term. So he was able to make demands: he would agree only if the PD and PdL broke the deadlock that was stopping the formation of a new government.

Voting Blogs: Italy’s ‘Perfect storm’ | openDemocracy

Some foreign publications, in commenting on the situation in Italy after the recent electoral results, have reverted to the offensively superficial and trite image of “bring on the clowns”. The term could be used both in a derogatory and a purely descriptive sense, as the only real winner of the election, Mr. Beppe Grillo, a professional comedian, could be called a “clown” without causing offence. Politically speaking, however, the epithet would not apply. Grillo has shown remarkable ability, and has created a powerful political movement, the party which has received the greatest number of votes (around 25 percent), from scratch, with no public financial backing, and in the teeth of first ridicule and then very violent criticism on the part of almost all the media. Whether this structure will show itself to be stable and lasting is another question, but it certainly wields decisive weight at this time. The same publications apply the epithet also to Mr. Berlusconi, mainly because, in their very superficial view of the situation, they consider him one of the “winners”, even though his Party has had the poorest electoral result in its history. The Italian press, in this case perhaps more imaginative and aiming at a higher cultural level, has preferred to describe the present political situation with the term “Perfect Storm” – much more suitable.

Italy: Napolitano Girds for Battle to Resolve Italy Election Impasse | Bloomberg

President Giorgio Napolitano, a former communist resistance fighter who negotiated Silvio Berlusconi’s resignation, is preparing his final political battle as he seeks to steer Italy out of its latest government crisis before his term expires in May. Napolitano, 87, is charged with resolving the political logjam caused by elections last month that produced a hung parliament. To avoid a new vote, he can try to forge a national- unity government, accept an administration without a majority or appoint a non-politician to head a so-called technical government, similar to that of Prime Minister Mario Monti. Markets are pricing in two scenarios, “another technical government or the possibility, which is less and less likely, of a bipartisan government,” Mario Spreafico, who manages 1.5 billion euros ($1.95 billion) as chief investment officer at Schroders Private Banking for Italy, said in a phone interview. “Both would be temporary solutions” before new elections.” The Feb. 24-25 ballot, which left front-runner Democratic Party leader Pier Luigi Bersani short of a majority in the Senate, has forced him to court the support of former comedian Beppe Grillo and his anti-establishment Five Star Movement, which won a quarter of the vote. Grillo responded by describing Bersani as a “dead man walking,” stressing his party would not give backing to any government. Italy’s 10-year bond yield has risen 21 basis points since the vote to 4.66 percent.

Italy: Bersani Set On Forming Government, Asks Grillo to Be Clear |

Pier Luigi Bersani, the notional winner of Italy’s general elections last month, told his party’s senior leaders that he would try to form a government even though his center-left coalition didn’t have a Senate majority. Any alliance with Silvio Berlusconi, longtime leader of the center-right, was “not practicable,” while some form of dialogue with the anti-establishment Five-Star Movement might be, Mr. Bersani said as he opened a day-long meeting of his Democratic Party’s top officials Wednesday. Mr. Bersani, whose center-left coalition narrowly won the most votes in an election that unexpectedly showed a near tie between three rival groups, is under pressure to outline how he will try to form a coalition able to pass a confidence vote in both parliamentary chambers. Political instability in Italy has raised concerns that the euro area’s policy approach to its sovereign debt crisis is failing. Italy’s election was a “thermometer” of long-simmering tensions, Mr. Bersani said, noting that euro-skepticism is growing even in Germany.

Italy: Octogenarian president holds Italy’s fate | Reuters

As Italy faces a deep political crisis, the fate of the country is in the hands of an octogenarian former communist only weeks from retirement. Under Italy’s constitution, President Giorgio Napolitano, 87, is charged with trying to find the way out of an intractable impasse caused by a huge protest vote in the Feb 24-25 election, which saw no group emerge with enough support to govern. The task is exceedingly difficult, but if anybody can succeed it is probably Napolitano, who enjoys both huge respect and popularity, and has shown skill in navigating previous major storms in Italy. In fact after an election in which Italians vented their rage against the politicians, he may be the only traditional political figure left who commands much respect at all. Napolitano has stepped into the breach in a moment of emergency before, in November 2011, when Italy faced a perilous debt crisis. He engineered the replacement of scandal-plagued premier Silvio Berlusconi with technocrat Mario Monti.

Italy: Bersani ultimatum may bring new Italy election closer | Reuters

Italy could be inching closer towards another election within months after center-left leader Pier Luigi Bersani issued an ultimatum to anti-establishment comic Beppe Grillo to support a new government or return to the polls. Last week’s election, in which Grillo’s 5-Star Movement won a huge protest vote, left no group with a working majority in parliament, making an alliance with a rival the only way out. On RAI state television late on Sunday, Bersani underlined his opposition to two of the options floated – another technocrat government like the outgoing one led by Mario Monti or a coalition with Silvio Berlusconi’s center-right. That would leave only one possibility to avoid elections – Grillo’s backing for the center-left, which won the lower house in the election but does not have enough support in the Senate. “Now (Grillo) must say what he wants, otherwise we all go home, including him,” Bersani said.

Voting Blogs: The Italian puzzle – austerity, corruption, and the man next door | openDemocracy

Most international press has identified the results of the Italian elections as a vote against austerity. We find this analysis inaccurate, and with this article we explain why and present some likely scenarios. The message of the electorate is that before any macroeconomic or financial change can be considered, Italy’s institutions and their representatives need to be reformed and the impoverishment of the country must be addressed. Homework first. Italy enjoys a bi-chamber system: the lower Chamber and the Senate have an equal say on all matters including the appointment of the government. The electoral law was changed in 2005 by Berlusconi and his allies to make it very difficult for whoever does not win Lombardy and Veneto, the most populous and traditionally right-leaning regions, to win both chambers. Italians under the age of 25 are still shockingly not allowed to vote for the upper house, making it traditionally more conservative.

Italy: Italy May Need New Election With No Deal on Bersani | Bloomberg

Italy may hold new elections within months should Democratic Party leader Pier Luigi Bersani fail to win support in parliament to form a government after inconclusive elections. There are no alternatives to a vote “in a few months” if Bersani doesn’t get a majority in parliament, Stefano Fassina, economic-policy spokesman for Bersani, said today on Sky TG24 TV. “We should name a new president, change the electoral law and then return to polls as soon as possible.” Italian bond yields surged after elections on Feb. 24-25 ended in a four-way parliamentary split, raising doubt over the stability of the next government. Bersani, whose party won the most votes, failed to gain control of parliament as former Prime Minister Silvio Berlusconi and comedian-turned-politician Beppe Grillo won blocking minorities in the Senate.

Editorials: Welcome to Italy, where nobody knows what will happen next | Maria Laura Rodotá/The Observer

Last Monday, for the first time in my memory, nobody celebrated after a general election. No celebration from the Democrats, who were the projected winners but came out sore losers. Nor from the seven million voters (down from 13 million in 2008) who still chose Silvio Berlusconi and then became invisible – almost no one admits to having voted for the disgraced former prime minister. There was not even any celebration from the real winners, the militants and voters of the Movimento 5 Stelle (Five Stars? How did Italy end up with a populist party whose name sounds like a luxury hotel chain?). Without securing a parliamentary majority, it is now the leading party in the Camera dei Deputati, and the second in the senate. But, contrary to national tradition, the movement’s supporters did not meet in piazzas, they did not take to the streets honking their car horns, they did not gather outside the party’s headquarters opening bottles of sparkling wine. Beppe Grillo’s movement voters are recession-stricken and don’t find a great deal to celebrate. Also, nobody knows, or much cares, where the party headquarters are actually based.

Italy: President Napolitano rejects new polls | BBC

The prospect of an early repeat vote in Italy to break the February election gridlock has receded after the outgoing head of state rejected the idea. Giorgio Napolitano, who as president holds the power to dissolve parliament, said he doubted his successor in the post would favour the idea either. Mr Napolitano must stand down as president in mid-May. The three main political forces are sharply divided after none managed to win an outright majority. Uncertainty over the future management of the eurozone’s third-biggest economy has caused concern among Italy’s partners and investor confidence has been shaken. A protest movement led by a former comedian, Beppe Grillo, surged virtually from nowhere to take a quarter of the vote, handicapping the traditional alliances on the right and left. The centre-left bloc led by Pier Luigi Bersani won a majority in the lower house but not in the equally important upper chamber. It is expected to attempt to form a government after the new parliament meets, some time within the next fortnight.

Italy: Bersani dismisses Italy Senate coalition with Berlusconi | Deutsche Welle

Seeking a solution to stalemate in the Senate, Italy’s upper house of parliament, election-winner Pier Luigi Bersani has said his center-left alliance will not ally with former Prime Minister Silvio Berlusconi’s bloc. Pier Luigi Bersani said in a newspaper interview published on Friday that his center-left bloc was not prepared to ally with the rival group led by Silvio Berlusconi, even with Berlusconi holding the upper hand in the Senate. “I want to spell it out clearly: the idea of a grand coalition does not exist and will never exist,” Bersani told La Repubblica. As the most popular party in the vote for the Chamber of Deputies, the lower house, Bersani’s bloc is guaranteed 54 percent of the seats under Italian electoral law. The Senate, however, has roughly equal legislative powers, meaning that this lower house majority might not suffice for Bersani to push policies through as premier. “Call it what you want,” Bersani said when asked whether he would seek a minority government in the Senate instead. “Minority government, government of purpose, that doesn’t interest me. For me it is a government of change.”

Voting Blogs: The Italian General Election of February 2013: Deadlock after Technocracy | The Monkey Cage

The main results of the Italian General Election held on 24-25 February 2013 were unexpected. The most blatant outcome is the success of the brand new Five Star Movement led by the comedian Beppe Grillo. This political movement received the most votes in the Chamber, gaining more than 25 per cent of valid votes. The centre-left coalition led by the Democratic Party’s leader Pierluigi Bersani gained a plurality of votes in the Chamber (29.5% of valid votes). The seat bonus provided by the electoral system ensured the centre-left coalition a majority of seats (340 seats out of 630). In the Senate, where the seat bonus is allocated on a regional basis, the centre-left coalition gained 121 seats, far short of the majority threshold required to govern (158).

Editorials: Italian election triggers EU identity crisis | Deutsche Welle

Italy is no longer striking a “bella figura.” The country’s post- election chaos has shaken the very foundations of the European Union as the idea of a politically united Europe appears to suffer a blow. Rome’s Colosseum appears somewhat run-down, with its enormous pillars stained gray by pollution and its basement vaults fallen down. Yet it continues to be a first-class European cultural good. Now, with the Italian capital’s coffers empty, a luxury fashion company is financing the site’s renovation, to the tune of 25 million euros ($33 million). These days, the monument to Rome’s former greatness appears to be a reflection of Italy. Because of its financial problems and current political stand-off, Italy – among the “most European” of countries – has become the problem child of the Continent. Like the Colosseum, the highly indebted eurozone country could be dependent on external help – namely that of the European Union. The EU is hoping that the Mediterranean country will be able to get itself out of its crisis, as the EU isn’t eager to take on the role of sponsor. But if the third-largest economy of the eurozone keeps tumbling, it could take the whole bloc with it. Developments in Italy, though a consolation to EU skeptics in Greece, Spain and Portugal, have placed basic assumptions into question: for example, whether Europe can be reformed, how fundamental sustainable solidarity is, and whether the political union even makes sense. Is European Union drifting apart?

Italy: Beppe Grillo snubs deal with Bersani | BBC

Italian comedian-turned-politician Beppe Grillo, whose Five-Star Movement (M5S) defied expectations to come third in last weekend’s elections, has ruled out a coalition with the centre-left. Pier Luigi Bersani’s Democratic Party (PD) won a majority in the Chamber of Deputies but fell short in the Senate. Mr Grillo told the BBC he expected Mr Bersani to agree a deal with Silvio Berlusconi’s People of Freedom (PdL). The inconclusive polls have pushed up borrowing costs for the government. On Wednesday, the Italian treasury sold 4bn euros (£3.45bn) of new 10-year government bonds on the financial markets at a yield of 4.83%, up from 4.17% at its last sale in January, and 2.5bn euros of new five-year bonds at a yield of 3.59%, up from 2.94%.

Editorials: Italy’s election leaves country — and eurozone — on financial high-wire | Louise Cooper/CNN

Brilliant minds across the financial world are still trying to work out the implications of the Italian election result. For the time being, the best answer is that it is probably too soon to tell. After Tuesday’s falls, a little stability has returned to markets, possibly because everyone is still trying to work out what to think. Credit ratings agency Moody’s has warned the election result is negative for Italy — and also negative for other indebted eurozone states. It fears political uncertainty will continue and warns of a “deterioration in the country’s economic prospects or difficulties in implementing reform,” the agency said. For the rest of the eurozone, the result risks “reigniting the euro debt crisis.” Madrid must be looking to Italy with trepidation. If investors decide that Italy is looking risky again and back off from buying its debt, then Spain will be drawn into the firing line too.

Italy: Ingovernabilita! Inside Italy’s Election Limbo | The Daily Beast

One doesn’t need to be fluent in Italian to understand the post-election headlines across Italy: ingovernabilita, nervosismo, miracolo Berlusconi. Italians woke up on Tuesday morning to see their worst fears realized: the country’s first-ever hung parliament. Essentially, no one has enough support to lead the country out of its dire troubles. After a bitter campaign, Pier Luigi Bersani’s center-left coalition narrowly won in the lower house of parliament and will benefit by an automatic winner’s bonus of 54 percent of the house seats, but he barely eked out a win in the Italian senate, where it counts. There, the divisions are based on regions, and his win does not translate to a majority. His chief nemesis, Silvio Berlusconi, who rose from the ashes of a scandalous resignation in November 2011, was able to steer his center-right coalition to within a hair of the majority, but with no willing partners to help him reach the threshold. The big winner of these elections was Beppe Grillo, a comedian who captured the essence of Italy’s disgruntled set and has effectively become the kingmaker in both houses. His platform, which includes holding a referendum on Italy’s continuation in the euro and rethinking its involvement in military operations abroad, including logistical support in Mali, is seen as welcome change by many disgruntled Italian voters, especially the young and newly unemployed. Grillo refused to do any campaigning on Italian television and focused instead on new media, utilizing his popular blog, Facebook, and Twitter to rabble rouse.

Italy: Bersani says nation in dramatic situation | BBC

Centre-left leader Pier Luigi Bersani says Italy is in a “dramatic situation” after election results that leave the country in political stalemate. Stock markets and the euro have fallen amid concerns the deadlock could re-ignite the eurozone debt crisis. But Mr Bersani, whose coalition won most seats in parliament, did not identify a preferred partner in government. He said all political parties should take responsibility for the country. Centre-right leader Silvio Berlusconi said earlier fresh elections should be avoided, and called for a period of reflection, which correspondents suggest could mean he is considering a very awkward alliance with his opponents on the centre-left. Other European countries have urged Italian politicians to create a stable government as soon as possible – with France and Germany urging continued reform, and Spain describing the result as a “jump to nowhere”.

Italy: Beppe Grillo’s Five Star revolution | openDemocracy

According to the latest polls from two weeks ago (there is now a poll ‘blackout’ until after the election), ‘M5S’ would secure over fifteen per cent of the national vote, putting it into third place, behind Bersani’s centre-left and Berlusconi’s centre right coalitions, but ahead of former PM Monti’s group. Some internal polling suggests M5S might do even better. Grillo’s movement translates to the ‘Five Star Movement’ in English. The five ‘stars’ represent its main themes: public water, transportation, development, internet connection and availability, and the environment.  Running on a simple manifesto based on these themes, he has enjoyed a rise in popularity perhaps unrivalled in post-War Western Europe: one year ago, he was polling at around five per cent. This is despite the party doing the precise reverse of what a political campaign strategist would advise: none of its members had been interviewed in the Italian media until last weekend, and its most famous member, Grillo himself, refuses to stand. What accounts for his meteoric rise? Last week, we released a new report based on a survey of almost 2,000 Facebook fans of Grillo and the M5S. The answer is a fascinating and powerful mix of anti-establishment rhetoric, new technology and old fashioned rallies and local action. If Grillo does as well as polls suggest, perhaps even so well to become kingmaker, then the whole of Europe should take note. I suspect there are plenty of other European countries where another Grillo might explode onto the scene and cause a similar political tremor: including the UK.

Italy: Italy faces stalemate after election shock | Reuters

Italy faced political deadlock on Tuesday after a stunning election that saw the anti-establishment 5-Star Movement of comic Beppe Grillo become the strongest party in the country but left no group with a clear majority in parliament. “The winner is: Ingovernability” was the headline in Rome newspaper Il Messaggero, reflecting the stalemate the country would have to confront in the next few weeks as sworn enemies would be forced to work together to form a government. The center-left coalition led by Pier Luigi Bersani won the lower house by around 125,000 votes, where it will have a majority because of a premium given to the largest party or coalition. Results in the upper house Senate indicated the center-left would end up with about 119 seats, compared with 117 for the center-right. Seats are awarded on a region-by-region basis in the Senate, where a majority of 158 is needed to govern. Any coalition must have a working majority in both houses in order to pass legislation.

Italy: Berlusconi Calls for Recount After Refusing to Concede Defeat | Bloomberg

Former Prime Minister Silvio Berlusconi’s People of Liberty party refused to concede defeat in Italy’s election and called for a recount of the vote. Berlusconi and his allies trailed the Democratic Party-led coalition of Pier Luigi Bersani by less than half a percentage point, a margin of fewer than 150,000 votes, with more more than 1 million votes still to be counted at 12:45 a.m. The returns “are calculated from empirical methods that are inevitably subject to a margin of error,” PDL Secretary General Angelino Alfano said at a press conference in Rome. “Even if the margin is contained, it will certainly be more than the difference in votes, which is minimal, between the two coalitions in the Chamber.”

Editorials: Italy’s election: Send in the clowns | The Economist

A sense of humour in adversity can be attractive, but it is not always useful. Confronted by the worst recession in their country since the 1930s and the possible implosion of Europe’s single currency, the people of Italy have decided to avoid reality. In this week’s election a quarter of the electorate—a post-war record—did not even bother to show up. Of those who did, almost 30% endorsed Silvio Berlusconi, whose ruinous policies as a clownish prime minister are a main cause of Italy’s economic woes. And a further 25% voted for the Five Star Movement, which is led by a genuine comedian, Beppe Grillo. By contrast, Mario Monti, the reform-minded technocrat who has led Italy for the past 15 months and restored much of its battered credibility, got a measly 10%. This result is a disaster for Italy and for Europe. In Rome the centre-left coalition headed by Pier Luigi Bersani, the pre-election favourite who ended up getting only a whisker more of the vote than Mr Berlusconi, is now struggling to form a government: it is unlikely to be stable or durable (see article). Meanwhile, financial markets across Europe swooned on the news. Share prices fell sharply almost everywhere. Sovereign-bond yields jumped across the Mediterranean countries, to levels touched three months ago, even as they fell in Germany, bringing the euro crisis back to centre-stage.

Editorials: Why some Italians should vote both for Berlusconi and Bersani coalition | Al Jazeera

As you watch the Italian election results come in this weekend, ponder the following seemingly contradictory statement: for some Italians in some regions of the country, the vote that is most likely to lead to the policies they most prefer being enacted by the new government would involve voting for their preferred party in the elections to the lower house of the Italian Parliament (the Chamber of Deputies) but for their preferred party’s worst enemy – the party of Silvio Berlusconi – in the upper house (Senate) elections.  How could this be?  The answer lies in what political scientists call “strategic voting”. To understand strategic voting, it is first necessary to understand “sincere voting”. A sincere voter ranks the parties or candidates, and then casts his vote for his top ranked party: the vote is a “sincere” reflection of the voter’s top preference. A strategic voter, however, asks some sort of additional question before deciding whether or not to cast his vote for his top choice.  Usually this question is “will my vote be wasted”? The easiest way to waste a vote is to cast it for a candidate who has no chance of winning: think a vote cast for Ralph Nader, for example, in the 2000 US Presidential elections. Occasionally, a vote can also be wasted by casting it for a party that has already won an election, but needs a coalition partner to get above a minimum threshold in order to govern. Strategic voting then might dictate voting not for your preferred party, but for its needed coalition partner; such behaviour is said to explain the unexpectedly strong performance of the Free Democrats in the recent German regional election in Lower Saxony.  But there is another type of strategic voting, trying to influence policy outcomes. Social scientists Howard Rosenthal and Alberto Alesina have demonstrated how it can be perfectly rational for Americans to vote for one party in a presidential election and another party in legislative elections if one’s policy preferences are located between the two parties. The current Italian elections, however, take this form of strategic voting to a whole new level, as they provide a set of incentives for voters to vote for and against the same party in one set of legislative elections to pick a single government. Here’s how.