Europe is headed for a breakup. But, after a year of watching the EU establishment work the polls just enough to maintain the status quo in the Netherlands, France and Germany I wasn’t expecting much from yesterday’s Italian elections.
But with turnout over 73% we got just that. Voters were clearly motivated to change the course Italy is on. Now, we knew that Silvio Berlusconi’s center-right coalition would do well alongside upstart Five Star Movement.
The question was always going to be, however, how well would they do?
It looks like it was much better than the polls wanted us to believe. Last week I told you the markets were getting nervous about this election. This weekend the news was all about how subdued the reaction was to the polling.
As if a major technical breakout to the upside on Italian bond yields in the face of furious ECB buying wasn’t a strong enough market response?
But, that’s doesn’t fit the plan to gaslight voters and traders to worry about the potential outcome here.
The League of 5-Star Gentlemen
It looks like Five Start Movement will take more than 30% of the final tally, which is a couple of points above where polling had it tracking when the blackout went into effect two weeks ago.
The bigger result is that of The League (formerly The Northern League) who came off their secessionist mountain and ran hard on a platform of euroskepticism and anti-immigration.
The most important person in Italian politics right now is The League’s leader, Matteo “The EU can go F&%k itself” Salvini.
When the final votes are revealed, if The League out-polled Silvio “Establishment Stalking Horse” Berlusconi’s Forza Italia! then he has the hammer in coalition negotiations.
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