This article is from the source 'nytimes' 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.nytimes.com/2016/12/05/world/europe/italy-matteo-renzi.html

The article has changed 12 times. There is an RSS feed of changes available.

Version 6 Version 7
Italy Uncertain After Vote; Victory for Far Right as Matteo Renzi Departs Matteo Renzi’s Loss in Italy Is Clear, but Who Are the Winners?
(about 2 hours later)
■ Italian voters overwhelmingly rejected changes to the Constitution that would have streamlined the legislative process.■ Italian voters overwhelmingly rejected changes to the Constitution that would have streamlined the legislative process.
■ The vote on Sunday was widely seen as a referendum on the government of Prime Minister Matteo Renzi, who backed the change and said after the vote that he would resign.■ The vote on Sunday was widely seen as a referendum on the government of Prime Minister Matteo Renzi, who backed the change and said after the vote that he would resign.
■ The results represented another victory for anti-establishment movements in Europe. “Times have changed,” said Beppe Grillo, leader of the populist Five Star Movement.■ The results represented another victory for anti-establishment movements in Europe. “Times have changed,” said Beppe Grillo, leader of the populist Five Star Movement.
■ Financial markets were stoic on Monday: The euro recovered from early losses and European stocks rose.■ Financial markets were stoic on Monday: The euro recovered from early losses and European stocks rose.
Italy woke up to uncertainty on Monday, with a headline in the daily La Repubblica declaring, “The No triumphs, Renzi quits,” echoing the sentiment in most papers.Italy woke up to uncertainty on Monday, with a headline in the daily La Repubblica declaring, “The No triumphs, Renzi quits,” echoing the sentiment in most papers.
Commentators acknowledged Mr. Renzi’s dignified reaction to what mostly seemed a vote against his political tenure, and they called for responsibility from political forces. Commentators acknowledged Mr. Renzi’s dignified reaction to what mostly seemed a vote against his tenure, and they called for responsibility from political forces.
“Now the reality is the risk of a return to the swamps and to instability,” Mario Calabresi, editor in chief of La Repubblica, wrote in a front-page editorial on Monday. “A scenario that Italy really doesn’t need.” “Now the reality is the risk of a return to the swamps and to instability,” Mario Calabresi, editor in chief of the daily La Repubblica, wrote in a front-page editorial on Monday. “A scenario that Italy really doesn’t need.”
Mr. Renzi is to summon his cabinet Monday afternoon and will later tender his resignation to President Sergio Mattarella, who will hold talks with the political parties trying to form a caretaker government or call early elections.Mr. Renzi is to summon his cabinet Monday afternoon and will later tender his resignation to President Sergio Mattarella, who will hold talks with the political parties trying to form a caretaker government or call early elections.
According to the Italian news media, one candidate who could lead a pro-tempore government is Economy Minister Pier Carlo Padoan, a technocrat. The speaker of the Senate, Pietro Grasso, a longtime anti-mafia magistrate, is also a possibility.According to the Italian news media, one candidate who could lead a pro-tempore government is Economy Minister Pier Carlo Padoan, a technocrat. The speaker of the Senate, Pietro Grasso, a longtime anti-mafia magistrate, is also a possibility.
Although most opposition parties are pushing for elections to be held quickly, opponents of Mr. Renzi within his Democratic Party are more inclined to take their time. — GAIA PIANIGIANI Although most opposition parties are pushing for quick elections, opponents of Mr. Renzi within his Democratic Party are more inclined to take their time. — GAIA PIANIGIANI
A breakdown of returns shows that opposition to the constitutional changes — and to Mr. Renzi’s government — was widespread, although clearly more so in the southern part of the country. A breakdown of returns shows that opposition to the constitutional changes was widespread, more so in the south.
Only three regions backed the changes — the historically leftist areas of Tuscany and Emilia-Romagna in central Italy, and Trentino-Alto Adige in the far north. Only three regions backed the changes: the historically leftist areas of Tuscany and Emilia-Romagna in central Italy, and Trentino-Alto Adige in the far north.
In the economically struggling regions of Sicily and Sardinia, which voted against the changes, the divide between the yes and no camps was as large as 44 percentage points, and the pattern was similar in cities and neighborhoods where unemployment is high and social problems are pronounced. In the economically struggling Sicily and Sardinia, which voted against the changes, the divide between the camps was as large as 44 percentage points. The pattern was similar in areas with high unemployment and social problems.
“The country isn’t growing, and voters blamed their personal condition on the government,” said Stefano Folli, a commentator for La Repubblica. “The vote collected fears, unemployment concerns and anti-establishment sentiments. And it was an incredible defeat.” “The country isn’t growing, and voters blamed their personal condition on the government,” said Stefano Folli, a commentator for La Repubblica.
The results also reflected a generational divide. According to a survey reported by the news channel Sky TG24, young voters rejected the proposed changes, while more than half of those over 55 supported them. — GAIA PIANIGIANIThe results also reflected a generational divide. According to a survey reported by the news channel Sky TG24, young voters rejected the proposed changes, while more than half of those over 55 supported them. — GAIA PIANIGIANI
The euro recovered from early losses and European stocks edged up, a muted reaction based in part because a vote against the constitutional changes was expected, giving investors time to adjust their portfolios, and political instability in Rome is not exactly unusual. In parsing the results, Italian pundits did not always agree, except on one point: the severe consequences for Mr. Renzi.
“Does Renzi represent the country from a political, cultural point of view? Yesterday’s vote is a clear rejection of Renzi’s economic policies and of how he envisioned the country,” the political commentator Mario Sechi said. Mr. Renzi “doesn’t represent the zeitgeist of the nation, which did not follow him,” he added.
For Mr. Sechi, Beppe Grillo and his Five Star Movement are the clear victors, even if the “no” campaign brought together divergent political forces.
Sergio Fabbrini, director of the Luiss School of Government in Rome, said the outcome was less clear. Rejection of the constitutional changes was actually a reaction to Mr. Renzi’s “reformist program that in some way threatened a big part of the social political equilibrium,” he said.
The nearly 60 percent of the population that voted against him is “highly divided, with nothing in common, and no leader,” Mr. Fabbrini said. What joins them is a conservative, anti-European outlook. “Within that, you have the most extreme left and right.”
The person to watch in the short term is Mr. Mattarella, the president. “This is the first real test of the president of the republic, who has kept mostly in the background,” said Antonio Polito, deputy director of the Milan-based daily Corriere della Sera. — ELISABETTA POVOLEDO
The euro recovered from early losses, and European stocks edged up. It was a muted reaction, in part because a vote against the constitutional changes was expected, giving investors time to adjust their portfolios. Also, political instability in Rome is not exactly unusual.
But analysts said Italy was not in the clear, and there is potential for market turmoil in the case of government paralysis and delayed plans to fix Italy’s ailing banks.But analysts said Italy was not in the clear, and there is potential for market turmoil in the case of government paralysis and delayed plans to fix Italy’s ailing banks.
“It will be very much related to two factors,” said Nicola Nobile, a senior European economist at Oxford Economics in Milan. “What is going to happen to the banking system, and if we’re going to have a government soon.” The euro first fell as much as 1.5 percent against the dollar in Asian trading after the vote, but recovered by the European morning and even gained ground compared with last week. Major European stock markets were all slightly higher. — JACK EWING
The euro first fell as much as 1.5 percent against the dollar in Asian trading after the vote, but recovered by the European morning and even gained ground compared to last week. Major European stock markets were all slightly higher. — JACK EWING The vote results and Mr. Renzi’s decision to step down drew a jubilant response from other populist leaders in Europe.
The vote results and Mr. Renzi’s subsequent decision to step down drew a jubilant response from other populist leaders in Europe.
“Italians have disavowed the E.U. and Renzi,” Marine Le Pen, the head of the National Front in France, wrote on Twitter. “We need to listen to this thirst for nations’ freedom and for protection!”“Italians have disavowed the E.U. and Renzi,” Marine Le Pen, the head of the National Front in France, wrote on Twitter. “We need to listen to this thirst for nations’ freedom and for protection!”
With polls predicting that Ms. Le Pen will reach the 2017 presidential election runoff, she has sought to build an anti-establishment platform calling for a “Frexit” and a “People’s Spring.” The vote in Britain to withdraw from the European Union, a process known as Brexit, and Donald J. Trump’s recent victory in the United States have put wind in her sails.With polls predicting that Ms. Le Pen will reach the 2017 presidential election runoff, she has sought to build an anti-establishment platform calling for a “Frexit” and a “People’s Spring.” The vote in Britain to withdraw from the European Union, a process known as Brexit, and Donald J. Trump’s recent victory in the United States have put wind in her sails.
The National Front’s vice president Florian Philippot said on Twitter that the referendum in Italy was a “huge slap in the face of the E.U. and Renzi, its servant.” The far-right Dutch politician Geert Wilders, who recently refused to attend his hate-speech trial, used Twitter to congratulate “Italia + Matteo Salvini,” a reference to the leader of the anti-immigrant Northern League. — BENOÎT MORENNE
The far-right Dutch politician Geert Wilders, who recently refused to attend his hate-speech trial, used Twitter to congratulate “Italia + Matteo Salvini,” a reference to the leader of the anti-immigrant Northern League. — BENOÎT MORENNE Writing in Italy’s leading economic newspaper, Il Sole 24 Ore, the columnist Guido Gentili said that after the referendum, Italy needed to show through actions and legislation that it “ is not impermeable to reform.”
Germany urged caution after Italy’s referendum, emphasizing the importance of Rome forming a new government as quickly as possible in order to move forward. The image of Italy as a nation that “bobs more or less happily in stagnant water between the third largest public debt in the world and a banking system in a deep coma” must be “vigorously contested,” he wrote.
Wolfgang Schäuble, the German finance minister, told reporters in Brussels, where he was meeting with his eurozone counterparts on Monday, that the decision by Italian voters must be respected and should be taken “with a degree of calm.” Vincenzo Boccia, the president of Italy’s main business lobby, Confindustria, said the referendum results highlighted the need to tackle pressing economic issues like “debt, deficit and still-insufficient growth.”
“There is no reason to speak about a euro crisis, and there is certainly no reason to conjure one up,” Mr. Schäuble said at a meeting of finance ministers from the 19 countries that use the euro. “The Italians have decided; we have to respect that. They will make the best of it.” “Growth is the only way to eliminate inequalities and poverty,” he said in a statement issued Monday morning. Italian companies have been making “crucial efforts” to compete in international markets, he added, and need the government to back them up. — ELISABETTA POVOLEDO
Chancellor Angela Merkel’s spokesman, Steffen Seibert, said the chancellor “took with a note of regret” Mr. Renzi’s announcement that he would resign and that Germany would work closely with the next Italian government. The populist victory in Italy was hailed by many like-minded leaders across Eastern Europe, where similar sentiments are on the rise, but their reaction was tempered by widespread concern that the results would accelerate the fraying of the European Union, upon which the region has come to depend.
Frank-Walter Steinmeier, the German foreign minister, also urged calm from Athens, where he was meeting with Prime Minister Alexis Tsipras. “This is certainly not a positive contribution in what is one of the most difficult times in Europe,” said Mr. Steinmeier, who is expected to become president next year. But the outcome “is not the end of the Western world,” he added. Poland, the largest economy in the region, seemed torn between praising a victory by populists who share its governing party views and worrying about vulnerability to Russia.
Leaders of Germany’s own populist, nationalist party, Alternative for Germany, welcomed the outcome in Italy as an indication of the ability of a European people to make a “sovereign and democratic” decision and calling for a similar vote in Germany over whether taxpayers should continue to contribute to provide financial assistance to Italy. — MELISSA EDDY
The populist victory in Italy was hailed by many like-minded leaders across Eastern Europe, where similar sentiments are on the rise, but their reaction was tempered by widespread concern that the results will accelerate the fraying of the European Union, upon which the region has come to depend.
Poland, the largest economy in the region, seemed torn between praising a victory by populists who share its governing party’s anti-immigrant, euroskeptic views and worrying that a further splintering of the union would make the country vulnerable to potential mischief from Russia.
“This would be a major blow not just for the E.U. but for the eurozone,” Foreign Minister Witold Waszczykowski said in an interview with Polish state radio. “What will the future bring?”“This would be a major blow not just for the E.U. but for the eurozone,” Foreign Minister Witold Waszczykowski said in an interview with Polish state radio. “What will the future bring?”
Katarzyna Lubnauer, a member of the liberal opposition party Modern, was among those who pointed with concern to parliamentary votes in Germany and France, where populist candidates also are on the rise. “All of this goes to show that Europe is in the middle of a crisis,” she said. Tomas Sedlacek, chief macroeconomic strategist in Prague for the lender CSOB, tied the Italian defeat directly to Mr. Trump’s victory and predicted a dire future. “Democracy, and the future of the euro in Europe, is truly walking on the edge of a knife,” he said.
Tomas Sedlacek, chief macroeconomic strategist in Prague for the lender CSOB, tied the Italian defeat directly to Mr. Trump’s victory and predicted a dire future. “Democracy, and the future of the euro in Europe, is truly walking on the edge of a knife,” he said. “If we disassemble the only project postwar Europe has been working on, we might never be able to put it back together.” In Slovakia, where anti-euro sentiment is widespread, many residents are convinced that embracing the currency led to higher prices for everyday goods. “We can expect a referendum about leaving the eurozone,” predicted Richard Zulik, leader of Slovakia’s liberal Freedom and Solidarity party. — RICK LYMAN
In Slovakia, where anti-euro sentiment is widespread, many residents are convinced that embracing the currency led to higher prices for everyday goods compared to neighbors like Poland, Hungary and the Czech Republic that kept their own currencies. Finance ministers from the 19 countries that use the euro expressed relief that the economic reaction to the Italian referendum was muted. Yet the vote could still roil the European Union: It threatens to embolden opponents of the single currency, which could destabilize the Italian economy and foment turmoil in the banking sector.
“We can expect a referendum about leaving the eurozone,” predicted Richard Zulik, leader of Slovakia’s liberal Freedom and Solidarity party. “Italians have had enough of the European establishment, so much so that they refused some good changes.” — RICK LYMAN Helping to stoke that concern is Banca Monte dei Paschi di Siena, Italy’s oldest lender, which faces questions about whether it has sufficient capital.
Finance ministers from 19 eurozone nations holding their monthly meeting in Brussels on Monday could find themselves facing a dilemma in the wake of the Italian vote. Asked whether a planned capital increase for the beleaguered bank would now be delayed, Jeroen Dijsselbloem, the president of the so-called Eurogroup of finance ministers, emphasized that Italy first needed to select a new leader.
Even as the so-called Eurogroup seeks ways to stave off a financial crisis, ministers from fiscally hawkish countries like Germany and the Netherlands will not want to be seen by their own electorates as overly permissive toward Italy. Even as Brussels scrambled to stave off negative financial consequences, ministers from fiscally hawkish countries like Germany and the Netherlands will not want to be seen by their own electorates as being overly permissive toward Italy.
“The only way Brussels can do much is to try and make sure that ordinary Italian citizens invested in their banks are not hurt too badly or have their savings wiped out,” said Mujtaba Rahman, the Europe director for the Eurasia Group, a political risk consultancy. But Mujtaba Rahman, the Europe director for the Eurasia Group, a political risk consultancy, warned that failing to protect small creditors in Italian banks could embolden populist euroskeptic forces. “My concern is that the Germans and the Dutch will be more inclined to apply the rules to look tough on profligacy and keep populist forces at bay in their own countries,” he said. — JAMES KANTER
Failing to protect small creditors in Italian banks “will increase support for populist euroskeptic forces led by Grillo and the Five Star Movement,” Mr. Rahman said. “My concern is that the Germans and the Dutch will be more inclined to apply the rules to look tough on profligacy and keep populist forces at bay in their own countries.” — JAMES KANTER