The upcoming Italian elections are a contest between the populism of short-term fixes championed by Silvio Berlusconi and the long-term reforms of Mario Monti necessary to make Italy’s economy solvent, competitive, and sustainable over the long run.
President Obama made a smart move by going on the Late Show with David Letterman, and German Chancellor Angela Merkel could benefit from something similar… if only she could pull it off.
Europe is churning after anti-austerity elections in Greece and France, where Socialist François Hollande ousted Nicolas Sarkozy. Europe must now shift from pure austerity toward growth. It must also keep working toward closer political union. Both moves will help Germany's economy.