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Subject

The Italian political scene ahead of the May 31 regional and local elections.

Significance

Prime Minister Matteo Renzi of the centre-left Democratic Party (PD) has consolidated his political authority in his party and parliament. The balance of political power has shifted in favour of the left. Renzi has made progress on institutional reforms, most notably of the electoral system, that promise to enhance Italy's longer-term governability. Renzi's strengthened political position, the current relative stability of Italian politics and the prospect of more authoritative Italian governments in future would all provide Italy some insulation in the event of renewed financial market turbulence prompted by a Greek default.

Impacts

Renzi currently stands out as the left's most successful leader of a major EU state.

Italian reformers seeking to consolidate party leadership authority and simplify decision-making have generally come from the right.

Renzi has made more progress in these areas than former centre-right Prime Minister Silvio Berlusconi achieved.

If Renzi secures his planned reform of the Senate, as seems likely, it would further boost both Renzi and Italy's governability.

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