The political clown

To be honest, I'm going to miss Silvio Berlusconi - at least a little bit. He was a gem, a political clown among a host of dull and dry counterparts across the European Union. His antics always had entertainment value. For us journalists, he always had some snappy comment to share. Berlusconi had the ability to speak in a way everyone could understand. He was polarizing and drove established German political leaders up a wall. But all fun aside, for an Italy on the verge of financial collapse, it is, of course, a relief that Berlusconi has finally said "addio."

The narcissistic Italian, who indulged in cosmetic surgery and wore high heels to appear taller, always saw himself as a man of the people. Italians loved him for a long while. Berlusconi governed for eight of the past 10 years, broken up by only two years of a center-left coalition government - an absolute record in a post-war Italy defined by political crises.

The tides seemed to turn two years ago, when Berlusconi himself went overboard. His escapades, raunchy "bunga-bunga" parties and alleged intimate encounters with underage prostitutes were too much for the Italian voters to forgive - as they had done when he changed the laws to shield himself from prosecution. His more-or-less complete control over Italian television and his side-jobs as media mogul and businessman did not harm him long term. His end ultimately came from the infamous financial markets.

It would be easy to place all the blame for the financial markets' and EU's loss of confidence in Italy on one person. And it would be most convenient to unload all the blame on Berlusconi, who has most recently appeared detached from reality. But the decline began much earlier, because former allies like Gianfranco Fini and Umberto Bossi turned away from him. Berlusconi's coalition government became a heap of rubble. The once-cunning tactician had always promised much, but never delivered. Now his house of cards has collapsed.

Italy faces daunting tasks. The deadlock of the last 10 to 20 years must be broken. This herculean task now falls on Mario Monti, the sort of anti-Berlusconi. The respectable economist and former EU commissioner already carries the nickname "Super Mario," an allusion to the classic video game. Monti will be tasked with leading a transitional government supported by the biggest parties in parliament.

How long he will be able to keep his position as prime minster without the support of a solid power base remains to be seen. He has to push through reforms, cut spending, raise taxes and increase Italy's economic competitiveness.

Monti doesn't have much time. If he wants to avoid letting the eurozone's third largest economy fall into bankruptcy, he has to win back the confidence from the markets before the year's end. The opposition parties will tolerate a Monti government only because they have slim chances of winning a stabile majority in snap elections. That much is also true for parts of Berlusconi's party, as well. As soon as this changes, elections will indeed take place.

Italy's chances of pulling itself out of the debt trap are better than Greece's. Italy has an industrial base, a relatively large entrepreneurial middle class and some strong brands and export-oriented companies. What is lacking is a sensible regulatory framework and good governance - something that cannot be changed overnight. It can only be accomplished long term. Hopefully markets and investors will grant this time to Mario Monti. The tenacious and politely charming Super Mario cannot rid Italy of its problems in just a few weeks. Monti must save not just Italy, but the entire eurozone. If Italy fails, so does the whole currency.

Author: Bernd Riegert / acb

Editor: Sean Sinico