12th December 2016
Political Upset Remains the Norm
This week has been fairly routine, a couple of elections, a populist revolt and the toppling of a government, so far so ordinary.
In Italy, the rejection of constitutional reform has resulted in the resignation of prime minister Matteo Renzi – prompting calls for an early election in which the anti EU Five Star party is expected to do well. While Italy shocked no one by reverting to its default state of political chaos, in Austria however there was something of an upset when the far right candidate lost to a liberal pro-European. The selection of a left-leaning politician, or even half way decent human being, is something of a novelty in 2016.
Elsewhere there has been much attention on who Donald Trump is picking to serve in government, with nothing so far suggesting his term will be any less controversial than his campaign. Markets have been untroubled by much of this, either viewing these events as positive developments, or more likely, becoming immune to the noise generated by political events.