Mr. Joffe is an editorial council member at Die Zeit in Hamburg and a fellow of Stanford’s Hoover Institution.
Everybody loves Italy for its savoir vivre and panache—not to mention Rome’s place as the cradle of Western civilization. Yet there is a darker side to the country’s vanguard role. In 1922 Italy gave the world fascism, more than a decade before Hitler’s storm troopers marched through Berlin’s Brandenburg Gate. After World War II, Italy was the only Western country ever to include members of a pro-Soviet Communist Party in its governing coalition. In 1970, the Red Brigades invented modern European terrorism.
This March brings another nasty first: power to the populists of the left-wing 5 Star Movement and the far-right League. Radical parties have won seats in several European legislatures, but nowhere have they captured a majority. Forget Marine Le Pen’s National Front in France, which can’t win more than a third of the French public. The outcome in Italy is historic: Europe’s fate may well be decided in Rome.
Imagine, in American terms, a coalition between Bernie Sanders and the tea party: an orgy of government spending on one side, tax cuts and small government on the other. Can’t be done? In Italy, non fa niente—it doesn’t matter. We can eat our pizza and have it too. While 5 Star seeks a guaranteed income of €780 (around $900) a month, the League will pursue its suggested flat tax of 15%.
Now do the arithmetic. Italy’s public debt has already surpassed 130% of gross domestic product, and European hedge-fund manager Joseph Oughourlian predicts that the new government’s goodies could swell the annual deficit by more than €150 billion.