Yet another political crisis triggered in 2019
In August 2019, the ruling coalition in Italy was then made up of the Northern League (a far-right Eurosceptic and populist regionalist party) and the 5-Star Movement (also a Eurosceptic "anti-system" party, which takes its name from five of the movement's themes: public water, sustainable mobility, development, connectivity and environment). Matteo Salvini then tabled a motion of censure as Minister of the Interior to provoke early elections favourable to the Northern League. But the M5E then allied itself with the centre-right Democratic Party (PD) to form a new majority coalition in power. An unexpectedly baroque alliance since the two parties have nothing in common except to oppose Salvini. The political news continues in 2020 with a constitutional referendum. Italians approve by 70% the amendment to reduce the number of deputies from 630 to 400, and senators from 315 to 200.
Italian unity embodied by Mario Draghi
But new jolt of this never-ending political crisis: on January 25, 2021, the M5E-PD coalition resigns over differences in the allocation of the special European aid fund Covid. It is now up to former European Central Bank President Mario Draghi to take over the reins of the country. It would appear that he has succeeded in recreating Italian unity with the formation of his new government. Supported by almost all Italian parties, he presented a pro-European program to rebuild the Italian economy at the end of February, despite the presence in his government of Salvini and the Northern League. Unprecedented in Italian unity, especially in recent decades marked by repeated crises, which earned him the nickname Super Mario! His goal: to get the Italian economy back on track and to defeat the Covid-19 health crisis.
The weight of debt in the economy
And Super Mario - who knows the subject all too well - will have his work cut out for him. Starting with managing the debt burden. Today, despite the many structural reforms undertaken by successive governments, the Italian economy remains desperately vulnerable. Like its European brethren, the 2008 economic crisis did not spare Italy and, since 2010, the country has continued to sink... with a public debt of 131.5% in 2018. Forecasts for 2019: the government debt rate should be 128.8%, but that of 2020 should obviously plunge. Affected by crises like the Greek and Spanish economies, Italy is struggling to revive its growth. As for unemployment, its rate will reach 11% of the active population in 2019. The disastrous consequences of the Covid-19 crisis on its economy, just as for France, are difficult to calculate at the moment.
The Italian Alps, a region tinged with blue
Although the six regions encompassing the Alpine mountains of northern Italy are different, there is a certain political cohesion: they are all governed by centre-right coalitions, except for the diehard Valle d'Aosta, a red confetti on the blue map, which is mostly governed by a centre-left coalition. There are also regional disparities: five of the country's 20 provinces are autonomous, including Valle d'Aosta, Trentino-Alto Adige and Friuli-Venezia Giulia. A special status was granted in 1943 for the protection of French-speaking people in the Aosta Valley and German-speaking people in Trentino-Alto Adige. And in 1963 for the protection of the Slovenian minority and to support the border territory against the Eastern Bloc in the middle of the Cold War for Friuli-Venezia Giulia. A specificity that obviously influences political movements. For example, Trentino-Alto Adige is led by Arno Kompatscher, the leader of the SVP, the South Tyrolean Südtiroler Volkspartei, a Christian Democrat regionalist party. This line is ultimately comparable to that of the Valle d'Aosta, which is also led by a regionalist party, the Union Valdotaine (UV), but with a centre-left orientation. In Friuli-Venezia Giulia, on the other hand, Salvini's far-right Northern League party runs the region, as do the Veneto (Venice) and Lombardy (Milan). A governance that is close to that of Piedmont, with a majority of Fuerza Italia (Berlusconi's far-right party), navy blue shades on the political chessboard. These results express a withdrawal into identity and protectionism, which can be explained by the crisis in the industrial sector that has had a lasting impact on northern Italy for several decades, especially the automotive sector, which is facing competition from globalization, and by the recent Covid-19 health crisis, which is plunging the world economy, and therefore the Italian economy, into a worrying instability.
Northern Italy, industrial champion
The Italian economy has its industrial champions, the big groups (Fiat, 50% of the automotive market, based in Turin), but also large, highly competitive companies that provide high value-added export products: electronics, office automation (Olivetti), household appliances (Candy, Zanussi), shoes, clothing (Max Mara, Benetton, Ellesse, Sergio Tacchini) and the luxury industry (40% of Italian exports: Valentino, Gianfranco Ferre, Giorgio Armani, Gucci, Gianni Versace). These companies are particularly dynamic.
In Lombardy , these companies have found a fertile ground for development, and a growing number of new entrepreneurs have been able to impose their products and efficiency. The secret of this system of industrial production, much appreciated by economists, lies in the "industrial districts". A concept adapted to the Italian economy. These are small geographical areas in which a large number of companies in the same production sector (sofas, shoes, textiles, etc.) join together to share the services necessary for their existence.
Piedmont is a rich region, both agriculturally (rice, corn, sugar beet, potatoes) and industrially. The region is a leader in the textile, food and household goods sectors. There are also 5,000 rice producers on 120,000 ha, with 600,000 tonnes per year, i.e. 30% of European production. The rice fields around Turin are noteworthy. It is also a land of gastronomy, with 54 AOC wines, 9 DOP cheeses, chocolate, hazelnuts, truffles, meat and rice. In terms of industry, Piedmont today has 396,000 manufacturing companies in the automotive, textile, food, computer technology and goldsmithing sectors. The automotive sector has 25 industrial districts (an Italian record), including the manufacturer Fiat, the figurehead of the Agnelli family
In the Aosta Valley , the main activities are agriculture and tourism. Its main agricultural products are cheese, including fontina, fruit and wine, the latter despite the high altitude of the vineyards and their acrobatic plantations, as the valley enjoys a hot and dry climate.
In Trentino-Alto Adige, in the heart of the Dolomites, the regional valleys produce numerous vintages, early fruits, dairy products and poultry products. Forestry contributes to a healthy paper industry. Chemical and metallurgical production sites take advantage of hydroelectric resources, which are widely exported. Chairs made in Italy now account for 50% of European production, or 40 million units. This production is the result of an industrial area limited to only 100 km² around Udine.
Regional tourism as a driver of development
Tourism is a significant factor in the country's economy, as it is one of the most important in the world (5th in the world, behind France, the United States, Spain and the United Kingdom). The sector accounts for about 10% of GDP. In Italy, as in France, the crucial holiday period is July and August. One of the favourite destinations for Italians is Lombardy (8.6%). In general, tourism represents a fundamental resource for the economy in the lake region, the ski resorts in the Alps and the Dolomites, and in the cities of art such as Turin and Milan. Northern Italy is increasingly developing wine and food tourism and the slow food movement, whose association, based south of Turin, attracts many tourists. The quality of the ingredients, from cold meats to wines and alpine cheeses, makes it a new destination for demanding gastronomes. The 2006 Winter Olympics in Piedmont have led to the development of extensive infrastructures in the ski resorts, but also in Turin. But the Italian mountains are attracting more and more tourists in the summer, when the air is fresh, with multiple hikes and diversified sports activities. There is also an upward trend in new resorts, mainly in Trentino on the border with Austria. The Plan de Corones resort, for example, has two new contemporary museums at high altitude and outstanding gourmet restaurants. The current trend, between global warming and the concentration of mass tourism, promises a bright future for mountain tourism, especially in this region with its high-end infrastructure.
Agriculture, the great challenge of the Alpine arc
The Italian industrial sector, which has historically been a bulwark of the Italian economy, is faltering, especially in Piedmont, which has focused almost exclusively on the automotive industry, to the detriment of agriculture. The financial crises of 2008, 2011 and now 2020-2021, due to the health crisis, have hit the Fiat group and Milan's industry hard, causing a considerable rise in unemployment and strong social tensions. These results should be put into perspective, however, as these are the richest regions in Italy. But one sector could counterbalance these losses: agriculture. Italy is the European leader in terms of production under quality labels (PDO, PGI or TSG). It is also one of the leaders in organic farming in the EU and the leading producer of high value-added wine. But the weaknesses of the agricultural sector remain the price of land, structures to be modernised, the organisation of the sectors and exposure to natural risks such as the Vaia storm, which in 2018 ravaged thousands of hectares of forest and many farms, particularly in the Dolomites.
