How Well-founded Is Italy’s Restored Confidence?

Italy’s prime minister Matteo Renzi claimed victory for his party in the European elections. He is now enjoying a lead role on the European Left, following the defeat of the French Socialists and a disappointing result for the German Social Democrats. Renzi has also re-established Italy’s credentials as a pro-European state, just ahead of Italy’s six-month presidency of the Council of the European Union. But his stellar reputation will soon be put to the test, for, in order to implement his ambitious plans for domestic reform, Renzi is relying on a leftward shift from the EU, towards greater flexibility in fiscal rules and a more growth-oriented approach. Without this, latent Euroscepticism in Italy is likely to become entrenched.