Meet the New Boss

I couldn't have said it better.

Campaigning on the message that he had so much more to do that he had not already done in his previous three governments, Silvio Berlusconi was swept back into power this week in Italy. Interestingly, the media, which happens to be about 90% controlled by Berlusconi, appears to have agreed. His new government, Italians are promised, will: cut taxes, increase spending, and balance the budget. Call me a mean-spirited cynic, but I'm skeptical. But, he's a politician and that's how politicians talk.

Actions are more important. Silvio Berlusconi has promised a lot and delivered very little in his career. The new government will be dependent on some odd anti-immigrant and separatist parties, but Italy should have a working right-wing majority. So, Burlusconi will have there opportunity to make so major changes. Here's what he should do:

- Fix the bizarre Italian tax system. Step up enforcement and rationalize the system. Berlusconi has argued that the crackdown on tax evasion is like a tax increase. He's right – step up enforcement and cut rates, so the system does not reward those who evade the law.
- Set up a program to reduce the ridiculous national debt. Reforming the government's massive entitlement programs is the most important step.
- End the talk of withdrawing from the Euro. The benefits of the stable currency and eliminated currency risk in trade with European countries far outweighs not being able to make national monetary policy.
- Sidestep the Naples garbage collectors union, and restore service to that city (Think Reagan with the Airtraffic controllers, or Thatcher with the coal miners – Who runs Italy?)
- Ease regulations. Berlusconi actually has a pretty good record on getting rid of red tape, and with a solid majority they should be able to push further.
- Don't menace immigrants.
- Liberalize international trade- Most importantly, Italy needs a massive program to crack down on corruption. This is the item which is least likely to occur with the new right-leaning government. They depend on the mafia and corrupt system too much to turn on it.