460-berlusconi_792155cI doubt I’ll ever find as much entertainment in a political figure as that I get out of Italy’s prime minister, Silvio Berlusconi. Besides the soap opera that is the man’s family life, his brushes with the law and his ownership of nearly all of the nation’s commercial television channels which epitomizes the phrase ‘conflict of interest’, he is clearly unfit for office. However, for a country in such a dire recession, with such a self-serving jester skyrocketing political risk as a leader, the man remains startlingly popular.

When analyzing political risk in Italy, one can at least be assured, as similar to that in Zimbabwe, that Berlusconi will find a way to remain in power. And indeed, his political grip is secure.

On the right he is unchallenged, even though by September he will be 73 years old. The centre-left opposition has, according to many sources, made little headway. In short, Berlusconi is more powerful than ever before.

And Italy suffers because of this ‘par for the course’ mentality that has left his leadership in government. The IMF forecasts that Italy’s GDP will shrink by 4.4% this year, more than in Britain, Spain and France. Italy is the only G7 rich country in which productivity has fallen in the past ten years. This hinders the competitiveness of other euro countries such as Germany.

And despite these statistics, reform in Italy will simply not occur. Although this should be a golden opportunity for Italy’s prime minister, besides helping fix the Naples garbage crisis, Berlusoni’s overall record is neither a liberal reformer or a believer in healthy competition, but a businessman continuing to be out for his own affairs, not to advance the cause of Italian business on the whole.

The turnaround of Fiat, which may now be taking over Chrysler, is but one example of Italian ingenuity adapting to a new geopolitical market. The people of Italy must now turn to a new leader in 2013 in order to boost an economy raring to compete out of today’s moral and economical ambivalence.

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