Author: Lucio Baccaro / Political Geography: Italy

Author:: Lucio Baccaro, Bjorn Bremer, and Erik Neimanns
Publication Date:: 08-2023
Content Type:: Working Paper
Institution:: Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:: While research on the economic characteristics of growth models across countries is now extensive, research on the politics of growth models is still in its infancy, even though governments routinely pursue different strategies to generate growth. In particular, we lack evidence on (1) whether citizens have coherent preferences towards growth strategies, (2) what growth strategies citizens prefer, and (3) what shapes their preferences. We address these questions through a new survey of public opinion in Germany, Italy, Sweden, and the United Kingdom, which exemplify different models. We find that preferences for growth strategies are consistent with other policy preferences and are meaningfully structured by class and retirement status, and to a lesser extent by sector of employment. At the same time, differences across class and sector are small, and a large majority of respondents across countries favor wage-led growth. This suggests there is a “representation gap,” since this particular growth strategy is in crisis everywhere.
Topic:: Public Opinion, Economic Growth, Representation, Macroeconomics, Comparative Capitalism, and Growth Models
Political Geography:: United Kingdom, Europe, Germany, Italy, and Sweden

Author:: Lucio Baccaro and Massimo D'Antoni
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Max Planck Institute for the Study of Societies
Abstract:: Has the strategy of the “external constraint” (voluntarily limiting the country’s policy-mak- ing discretion by tying it to the European mast) contributed to Italy’s stagnation over the past twenty-five years? The existing literature is divided on this question. The dominant in- terpretation is that Italy’s stagnation is due to insufficient liberalization, and that the exter- nal constraint has had no negative and even a positive influence. An alternative interpreta- tion emphasizes the demand compression and supply-side effects of the external constraint. Based on three case studies of public debt management, privatization, and labor market policy, this paper reconstructs the process by which the external constraint has affected out- comes. It argues that it has had a negative impact, but more as a necessary condition than as a sufficient one. In other words, it would probably have been possible to manage the exter- nal constraint differently to produce better outcomes, but without the external constraint, the stagnation would likely have been less deep.
Topic:: Political Economy, European Union, Economic Growth, and Liberalism
Political Geography:: Europe, Italy, and Southern Europe

Author:: Lucio Baccaro, Bjorn Bremer, and Erik Neimanns
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Max Planck Institute for the Study of Societies
Abstract:: The COVID-19 pandemic may lead to a resurgence of the euro crisis. In this context, Italy seems particularly vulnerable: support for the euro is lower than in most other eurozone countries, and a possible exit could have serious consequences for the common currency. Based on a novel survey experiment, this paper shows that the pro-euro coalition is fragile in Italy and preferences are malleable. They are heavily dependent on the perceived costs of continued membership, as a majority of Italians would opt for Italexit rather than accepting a bailout plan requiring the implementation of austerity policies. Individuals who feel they have not benefited from the euro are most likely to support exit when faced with the pros- pect of austerity. This suggests that, differently from Greece, where voters were determined to remain in the euro at all costs, the pro-euro coalition may crumble if Italy is exposed to harsh conditionality.
Topic:: European Union, Eurozone, Voting, and Currency
Political Geography:: Europe, Italy, and Southern Europe

Author:: Lucio Baccaro, Bjorn Bremer, and Erik Neimanns
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:: The COVID-19 pandemic may lead to a resurgence of the euro crisis. In this context, Italy seems particularly vulnerable: support for the euro is lower than in most other eurozone countries, and a possible exit could have serious consequences for the common currency. Based on a novel survey experiment, this paper shows that the pro-euro coalition is fragile in Italy and preferences are malleable. They are heavily dependent on the perceived costs of continued membership, as a majority of Italians would opt for Italexit rather than accepting a bailout plan requiring the implementation of austerity policies. Individuals who feel they have not benefited from the euro are most likely to support exit when faced with the prospect of austerity. This suggests that, differently from Greece, where voters were determined to remain in the euro at all costs, the pro-euro coalition may crumble if Italy is exposed to harsh conditionality.
Topic:: Public Opinion, Crisis Management, Voting, Survey, COVID-19, and Euro
Political Geography:: Europe and Italy

Author:: Lucio Baccaro and Massimo D'Antoni
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:: Has the strategy of the “external constraint” (voluntarily limiting the country’s policy-making discretion by tying it to the European mast) contributed to Italy’s stagnation over the past twenty-five years? The existing literature is divided on this question. The dominant interpretation is that Italy’s stagnation is due to insufficient liberalization, and that the external constraint has had no negative and even a positive influence. An alternative interpretation emphasizes the demand compression and supply-side effects of the external constraint. Based on three case studies of public debt management, privatization, and labor market policy, this paper reconstructs the process by which the external constraint has affected outcomes. It argues that it has had a negative impact, but more as a necessary condition than as a sufficient one. In other words, it would probably have been possible to manage the external constraint differently to produce better outcomes, but without the external constraint, the stagnation would likely have been less deep.
Topic:: Economics, Political Economy, and Euro
Political Geography:: Italy and North America

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