Self-fulfilling prophecies

Italy seizing up in a Mediobanca Security report to its customers, uncovered by

The Country is also in the “blacklist” of European peripheral States —Greece, Spain, Portugal and Italy—  where Constitutions with “a strong socialist influence” might put them at the center of the debt crisis, a J. P. Morgan’s recent report stated. The world’s bigger bank trader in derivatives, facing criminal allegations by the New Your Court since 2012 for the subprime fraud of its subsidiaries Bear Stern and EMC Mortgage which costed 22,5 billion dollars and millions jobs (and a US Senate committee released a 300-page report in March this year documenting the criminal practices and fraud carried out by JPMorgan), is accused to call for authoritarian regimes in Southern Europe -see here for one of these critics. “Political systems around the periphery typically display several of the following features: weak executives; weak central states relative to regions; constitutional protection of labour rights; consensus-building systems which foster political clientalism; and the right to protest if unwelcome changes are made to the political status quo. The shortcomings of this political legacy have been revealed by the crisis“. At the end of the J. P. Morgan’s document, the authors put forward a series of scenarios that they claim could result from the failure of European governments to change their State systems. These variants include: “1) the collapse of several reform-minded governments in the European south, 2) a collapse in support for the euro or the EU, 3) an outright electoral victory for radical anti-European parties somewhere in the region, or 4) the effective ungovernability of some Member States once social costs (particularly unemployment) pass a particular level.”

The leaks and relevance of those two reports in few days may not be accidental. In this case, a new financial storm will fall down on the EU peripheral Countries and another political crisis is going to open in Italy before winter. In the other case, an authoritharian turn will take place there through constitutional reforms of its bi-partisan government.