Italy will enjoy a period of relative stability as the new government may stay in power until the next scheduled elections in 2023, says Francesco Giavazzi, a pre-eminent Italian economist and political commentator. The reason is that both coalition parties have strong incentives to avoid early elections in which Lega's Matteo Salvini would likely triumph. Francesco Giavazzi is Professor of Economics at Bocconi University in Milan, and previously a regular visiting professor at MIT. He has been an advisor to the European Commission, the New York Fed, the Bank of England, the French treasury and the Italian Prime Minister. He was also Director General of the Italian Treasury responsible for debt management and privatizations in the 1990s.
Francesco Giavazzi spoke to Beat Siegenthaler of the UBS Knowledge Network in Milan on Sep. 24.