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Democratic elections installed Papandreou and Italy's Silvio Berlusconi. Money power in private hands sacked both. Berlusconi agreed to go once parliament passed austerity measures.
On Friday, Italy's Senate agreed. On Saturday, its lower House followed. By overwhelming majorities, both bodies approved deep social spending cuts, public sector layoffs, labor market deregulation, and other measures. More will follow.
By Sunday or early next week, an unelected Troika favorite will rule next. Following orders, President Giorgio Napolitano apparently will name EU Commissioner Mario Monti, "Super Mario" to some.
Earlier he served as European Commissioner for Internal Market Services, Customs and Taxation. He also chairs the Breugel think tank, is Trilateral Commission European chairman, and leading Bilderberger Group member close to Goldman Sachs.
On November 9, Napolitano named him Senator for life. Before next week, expect him to add prime minister to his credentials, unless parliamentary divisions prevent it. Some want new elections. Others want certainty to calm markets. Italian households want good government and social justice. Back room deals exclude both.
Technocrat governments faired poorly in the 1990s. Conditions they created elevated Berlusconi to power in 2001 and 2008 after a short failed 1994 tenure. Monti may turn out worst of all, given his mandate to assure deep, very unpopular cuts.
Italy's debt burden exceeds $2.5 trillion. Deeper cuts forcing more borrowing will raise it higher. On November 11, a Financial Times commentary warned that "appointing an unelected technocrat is less than ideal."
Italy and Greece may dig bigger holes. "(I)t would be a fatal mistake to presume that a coalition of the old established political elite, led by technocrat(s), will provide a miracle fix to deeply rooted problems.""Both governments will have to walk a tightrope between domestic policies and credibility in the markets....The new leaders must also recognize that nothing will be achieved without popular support."
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