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As you guys already know, all types of foreign investment from abroad requires that the host country has promise to remain stable and will predictably return profit for the investor. However, as we can see from the graph, Italy has seen it’s lowest political stability rating since over a decade ago.

And this also correspond to it’s effect in Italy’s economy from these two graphs right here

https://data.worldbank.org/share/widget?indicators=NY.GDP.MKTP.KD.ZG&locations=IT&view=chart

It’s economy appears to have fallen into stagnation and we can see a clear downward trend over the last 50 years in Italy’s GDP Growth.

Over the last 73 years, Italy has had 68 different governments. This is 2 time as many governments than the United Kingdom in the same time frame. The reason for the constant instability within Italy stems from it’s constitution. From 1922 to 1943, Benito Mussolini had power Italy and led it into World War II. After World War II, in 1946, Italy’s constitution was written to not let too much power fall into one person’s hand, making a weak government system. In result, the prime minister’s office was weak and must pass reforms through confidential votes, if the leader loses the vote, he and the entire government must step down from power (Yamei, 2019). That was the reason why Italy had so many different governments in such a short period of time.

The problems needs a reform or fine-tuning of the governmental system as a whole because.

• Prime Minister’s office is weak in making any decisions, can be confidential voted out of office
• Coequal houses of parliament that doesn’t negotiate and must agree on identical bills to make into law
• People are divided into many different political parties and coalition governments can fall apart if they don’t come to terms with one party

Although this class is about economics and not about politics, it’s still important the linking between the two. I just wanted to show the problem that has been hindering Italy from growing it’s economy further and will continue to in the future. It’s not related to the coronavirus but is a big concern for Italy in the long term.