Germany’s current debate about the ‘schwarze Null’ is heating up. Last month, SPD-frontwoman Saskia Esken threw her weight behind existing calls to let go of Germany’s unwritten rule that bans government deficits and has yielded eight consecutive years of budget balance for the federal government. Even Jens Weidmann, notorious throughout Europe for his hawkish stance as president of the Bundesbank, has said Germany should not fetishize the black zero. The debate is a welcome development not only for Germany but for the EU as a whole.
To understand Italian politics today, look no further than Cappuccino. Originally a Viennese invention based on the exotic beans of the coffee plant, Italians adapted the beverage by adding hot milk and a layer of milk foam to a double espresso base. Made in Italy, it spread across the globe. Just like in the case of cappuccino, Italy has just put another layer on its adoption of another foreign invention – the country is about to offer a new blend of modern Western populism.
The new Italian governing coalition mixes right-wing extremist and left-wing elements in a way unimaginable for a traditional party. Some worry that the coalition amounts to Italy opening the door to ‘the modern Barbarians’: The ‘odd couple’ is considered an unprecedented formation of ‘magical thinking’, whose implications for Italy, Europe, and the larger international order are expected to be dramatic. In this post, I explain how the ideological nucleus of populism serves as the common foundation of the coalition. Besides fighting economic stagnation and pushing back on immigration, the plans to overhaul a morally corrupt establishment in Italy and Europe form a key part of the new coalition’s programme and appeal.