Italy’s Populist Path Ahead

Two and a half months after an inconclusive general election, Italy looks as if it will soon have a government — a populist coalition between two anti-establishment parties, the Five Star Movement and the League. Having won a clear popular mandate, the two parties must be given a chance to govern. But the program they have in mind is extravagantly expensive. If they stick with it, Italy stands to suffer — and to run into conflict with Europe.

The coalition’s many pledges, ranging from steep income tax cuts to a generous income support scheme for the poor, add up to more than 100 billion euros in new spending, according to an independent estimate. And the coalition has given no sign of how it might pay for its plans. Note that Italy already holds one of the largest public debts in the world.