Global Risk Outlook 2018 Volume 1 | Page 21

EUROPE Italy ITALY'S ELECTORAL EQUATIONS As Italy readies itself for parliamentary elections, the country faces heightened political uncertainty. It is likely that none of the major parties will garner sufficient votes to govern. GRI's Alexander Brotman and Nicola Bilotta calculate the probability - and risks - of various scenarios. Uncertainty has always been queen of the Italian political scene, and under new electoral ty: ili bab Pro rules, instability looks like the only 85% possible winner once again. Any political party will need to establish a coalition to be able to govern and even then, none will be sure to have the numbers to effectively lead the country. As the third-largest economy in the eurozone, Italy's future is important to how ongoing debates - such as 40% the migrant crisis and Brexit negotiations - shape European politics. The March 2018 elections carry risks from left- and right-wing Eurosceptic parties, which seek to undermine Franco-German alliance building. With the Czech Republic, Slovakia, Hungary and Poland drifting in a similarly populist direction, the 60% outcome of Italy's vote will be key. For more on the challenges Europe as a whole will face in 2018, check out Axel Hellman's analysis 70% on the GRI site. 19