This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2016/dec/04/italy-constitution-needs-fixing-not-as-urgently-as-banks-referendum
The article has changed 8 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Yes, Italy’s constitution needs fixing. But not as urgently as its banks do Yes, Italy’s constitution needs fixing. But not as urgently as its banks do | |
| (about 4 hours later) | |
| ‘All Italians know the government has a problem when it comes to making decisions. It’s just that people are divided over how to make the situation better.” So said one Italian government official last week as he denied that Sunday’s referendum was a verdict on Matteo Renzi’s government, the euro or the European Union. | ‘All Italians know the government has a problem when it comes to making decisions. It’s just that people are divided over how to make the situation better.” So said one Italian government official last week as he denied that Sunday’s referendum was a verdict on Matteo Renzi’s government, the euro or the European Union. |
| Unfortunately, the referendum has become a judgment on all three, along with the constitutional amendments it is supposed to be about, making it difficult to unpick the views of voters when all the votes are finally counted. | Unfortunately, the referendum has become a judgment on all three, along with the constitutional amendments it is supposed to be about, making it difficult to unpick the views of voters when all the votes are finally counted. |
| No wonder unofficial polling put the number of undecided voters going into the weekend at 6 million, which is a huge number of undecideds when around 12 million votes will probably win the day. | No wonder unofficial polling put the number of undecided voters going into the weekend at 6 million, which is a huge number of undecideds when around 12 million votes will probably win the day. |
| Prime minister Renzi is desperate to win, not only to avoid triggering his promise to resign if he loses, but also to push through legislation that has spent much of the last couple of years trundling back and forth between the lower house of deputies and the upper house, the senate. | Prime minister Renzi is desperate to win, not only to avoid triggering his promise to resign if he loses, but also to push through legislation that has spent much of the last couple of years trundling back and forth between the lower house of deputies and the upper house, the senate. |
| Both have equal status and reject each other’s legislative initiatives. The proposed constitutional changes would demote the senate to being a body of 100 members appointed by regional leaders who can discuss regional matters and have oversight of changes to Italy’s relationship with Brussels. | Both have equal status and reject each other’s legislative initiatives. The proposed constitutional changes would demote the senate to being a body of 100 members appointed by regional leaders who can discuss regional matters and have oversight of changes to Italy’s relationship with Brussels. |
| No longer, says Renzi, will attempts to liberalise high street chemists and usher in competition get stuck in the system for two years while senators and deputies with equal status cry foul. Senators will have a different job. | No longer, says Renzi, will attempts to liberalise high street chemists and usher in competition get stuck in the system for two years while senators and deputies with equal status cry foul. Senators will have a different job. |
| There are economists and business leaders who describe the reforms as crucial to Italy’s ability to claw its way back to health. Its industrial output is some 10% smaller than it was in 2007 and the unemployment rate stands at twice its pre-crash level, at 13% (the UK’s is 4.8%). | There are economists and business leaders who describe the reforms as crucial to Italy’s ability to claw its way back to health. Its industrial output is some 10% smaller than it was in 2007 and the unemployment rate stands at twice its pre-crash level, at 13% (the UK’s is 4.8%). |
| Others believe the reforms are a distraction from dealing with the collapse in manufacturing, and rescuing a banking sector that needs a massive injection of funds. | Others believe the reforms are a distraction from dealing with the collapse in manufacturing, and rescuing a banking sector that needs a massive injection of funds. |
| Beppe Grillo, the leader of the radical Five Star Movement, together with the virulently right-of-centre Northern League, form the most vocal opposition, and have done their utmost to make the referendum a verdict on the euro and Brussels. | Beppe Grillo, the leader of the radical Five Star Movement, together with the virulently right-of-centre Northern League, form the most vocal opposition, and have done their utmost to make the referendum a verdict on the euro and Brussels. |
| A No vote can only help their cause in bringing a referendum on Italian membership of the eurozone nearer, which is why it was disappointing to see former prime minister Romano Prodi join them. | A No vote can only help their cause in bringing a referendum on Italian membership of the eurozone nearer, which is why it was disappointing to see former prime minister Romano Prodi join them. |
| Prodi, who also ranks as a former EU commission president, believes the constitutional reforms hand too much power to the lower house and the government, and have faint echoes of the power-grab by Mussolini in the 1920s. | Prodi, who also ranks as a former EU commission president, believes the constitutional reforms hand too much power to the lower house and the government, and have faint echoes of the power-grab by Mussolini in the 1920s. |
| Few people believe the reforms are the best way to bring about more effective government, but they understand it took a great deal of wrangling to even arrive at a compromise package, and that what is on the table is unlikely to be available for a long time. | Few people believe the reforms are the best way to bring about more effective government, but they understand it took a great deal of wrangling to even arrive at a compromise package, and that what is on the table is unlikely to be available for a long time. |
| There is a silver lining to a No vote. Renzi could be persuaded by the president to form another government with a view to tackling the electoral system. Before elections that must be held in 2018, he could produce a system that recognises the need for a winner from Italy’s three main political blocs, including Silvio Berlusconi’s old party, Forza Italia. If so, a clear winner would solve many of the country’s problems. | There is a silver lining to a No vote. Renzi could be persuaded by the president to form another government with a view to tackling the electoral system. Before elections that must be held in 2018, he could produce a system that recognises the need for a winner from Italy’s three main political blocs, including Silvio Berlusconi’s old party, Forza Italia. If so, a clear winner would solve many of the country’s problems. |
| The government could also make strides to shore up the banking sector, which needs around $40bn by most estimates, to offset the mounting losses from decades of bad loans. | The government could also make strides to shore up the banking sector, which needs around $40bn by most estimates, to offset the mounting losses from decades of bad loans. |
| Monte dei Paschi, Italy’s third-largest bank, needs to raise €5bn of equity and sell off €28bn of bad loans. Long ago, Italians might have swallowed their pride and tipped all the non-performing loans into a bad bank. Now they are paying JP Morgan to construct a more complicated vehicle. That’s not ideal either – but it’s probably more important to get this right than switch around the constitution. | Monte dei Paschi, Italy’s third-largest bank, needs to raise €5bn of equity and sell off €28bn of bad loans. Long ago, Italians might have swallowed their pride and tipped all the non-performing loans into a bad bank. Now they are paying JP Morgan to construct a more complicated vehicle. That’s not ideal either – but it’s probably more important to get this right than switch around the constitution. |
| Privatised rail’s fundamental flaw | Privatised rail’s fundamental flaw |
| The annual, inexorable rise in rail fares is traditionally accompanied by train company representatives taking a ritual kicking on the airwaves, while angry passengers fume over the extra money they will have to shell out for the dubious pleasure of getting to work. | The annual, inexorable rise in rail fares is traditionally accompanied by train company representatives taking a ritual kicking on the airwaves, while angry passengers fume over the extra money they will have to shell out for the dubious pleasure of getting to work. |
| Sometimes, train operators merit a smidgen of sympathy when they point out that most fare rises are dictated by ministers. But while regulated fares, set by government to match July’s RPI inflation figure, will rise 1.9%, last week’s figures showed that the overall increase in January will be 2.3%. Certain operators – most notably Virgin Trains, on the east coast route that was last year still in public hands – have chosen to drive even harder, adding a whopping 5.5% on average to the fares they control. | Sometimes, train operators merit a smidgen of sympathy when they point out that most fare rises are dictated by ministers. But while regulated fares, set by government to match July’s RPI inflation figure, will rise 1.9%, last week’s figures showed that the overall increase in January will be 2.3%. Certain operators – most notably Virgin Trains, on the east coast route that was last year still in public hands – have chosen to drive even harder, adding a whopping 5.5% on average to the fares they control. |
| Given current inflation rates, Virgin’s fare rise should justly provoke anger. But the reasons behind it should also bring concern, from supporters of privatised rail as much as anyone else. | Given current inflation rates, Virgin’s fare rise should justly provoke anger. But the reasons behind it should also bring concern, from supporters of privatised rail as much as anyone else. |
| The increase comes as Virgin’s east coast operation attempts to keep pace with premium payments – fare revenues handed to the government – that are due to rise 23%, on plan to deliver a cumulative £3.3bn to the Treasury by 2023. Other firms who have eyed franchises are aghast at the scale of winning bids, and the Department for Transport has had to reassure the industry that it does not expect such sums again, as it struggles to keep enough participants to make the battered franchising system viable. | The increase comes as Virgin’s east coast operation attempts to keep pace with premium payments – fare revenues handed to the government – that are due to rise 23%, on plan to deliver a cumulative £3.3bn to the Treasury by 2023. Other firms who have eyed franchises are aghast at the scale of winning bids, and the Department for Transport has had to reassure the industry that it does not expect such sums again, as it struggles to keep enough participants to make the battered franchising system viable. |
| Virgin’s immediate problem on the east coast is that passenger growth is much lower than predicted. Few would weep to see a dent in the profits of the joint venture between Stagecoach and Richard Branson; but the recent history of this franchise is littered with private firms, from Sea Containers’ GNER to National Express, throwing back the keys when the going got tough. | Virgin’s immediate problem on the east coast is that passenger growth is much lower than predicted. Few would weep to see a dent in the profits of the joint venture between Stagecoach and Richard Branson; but the recent history of this franchise is littered with private firms, from Sea Containers’ GNER to National Express, throwing back the keys when the going got tough. |
| Virgin’s solution appears to be a renewed squeeze on the travelling public. One way or another, the riches that the DfT anticipated for the right to run the lucrative London-Edinburgh route might yet prove to be more fool’s gold. | Virgin’s solution appears to be a renewed squeeze on the travelling public. One way or another, the riches that the DfT anticipated for the right to run the lucrative London-Edinburgh route might yet prove to be more fool’s gold. |
| No festive advertising bounce | No festive advertising bounce |
| Turns out that trampolining dogs, calamitous cats and skating yetis don’t make us buy more stuff. Christmas does. That was the message from a survey of 11,500 consumers into Christmas TV adverts by MoneySavingExpert.com. Despite retailers’ claims that their seasonal tearjerkers pull in the punters, just 1% of those polled said the campaigns had a “big impact” on where they shopped. A further 2% said they had “an impact”, and a crushing 69% said they had no impact whatsoever. | Turns out that trampolining dogs, calamitous cats and skating yetis don’t make us buy more stuff. Christmas does. That was the message from a survey of 11,500 consumers into Christmas TV adverts by MoneySavingExpert.com. Despite retailers’ claims that their seasonal tearjerkers pull in the punters, just 1% of those polled said the campaigns had a “big impact” on where they shopped. A further 2% said they had “an impact”, and a crushing 69% said they had no impact whatsoever. |
| It would seem the likes of John Lewis and Sainsbury’s have become too subtle for their own good. A not insignificant 6% of people said they liked some of the adverts but could never remember who they were for, while 9% said they were “turned off” by the ads and deliberately avoided the stores behind them. And yet, retailers are spending more than ever before on the great festive push, making ad agencies the real winners this Christmas. | It would seem the likes of John Lewis and Sainsbury’s have become too subtle for their own good. A not insignificant 6% of people said they liked some of the adverts but could never remember who they were for, while 9% said they were “turned off” by the ads and deliberately avoided the stores behind them. And yet, retailers are spending more than ever before on the great festive push, making ad agencies the real winners this Christmas. |