Sunday, 11 March 2012

Il Professore

At the right place, at the right time

In less than four months of his tenure as Prime Minister and Minister of Finance, Mario Monti has rescued Italy, from what seemed to be in the dying embers of Silvio's government a prolonged kamikaze path to self-destruction. Mr Monti, who has always been a steadfast Europhile, was invited by the President of Italy, Giorgio Napolitano, to form a 'technocratic' and non-partisan government. His services to the European Commission and Economics placed him in a strong position to reduce spending, increase taxation, and liberalise what is still a stagnant and dysfunctional economy.

Mr Monti is just the latest of new leaders that have been the product of the mishap of the Financial Crisis and the European Sovereign Debt Fiasco. It is expected Mr Monti would step down by next year, but given his popularity and strong standing with fellow European Leaders it would not be far-fetched to suggest his government is likely to be around for a while.

An interesting question remains in the broad swathe of Economic History whether the Crises of the last four years heralds a new bread of technocratic, economic-savvy Politicians. Given the separation of political governance and economic management, prior to the financial crisis, in a number of advanced economies, are we going to see the reverse in the coming years?