Daily Archives: June 27, 2021

Among all the sectors suffering the brunt of COVID-19, the retail sector has suffered the most. The first wave of the pandemic enforced a nationwide lockdown which led to a massive downfall of the economy and the retail sector witnessed huge turmoil.

The retail industry has been swarmed with very tough choices, either downsizing to shutting down completely. In the process, a lot of retail companies could not find their feet on the ground and have been forced to quit the business.

The crisis has engulfed the organised and the unorganised sector under its effects. Organised sector companies still have better balance sheets and access to finance to manage for relatively more time but the unorganised segment which is bigger in size was holed badly.

A large percentage of the migrated workforce which moved back to their hometowns are often engaged in these small retail shops. Things had started coming back to usual during the last quarter of 2020 and early 2021, but the Second Wave hit again and this time in a more severe form. The lockdown and lockdown-like restrictions across the country have made a difficult case for the retail industry to survive owing to real estate costs, human resources and other overheads.

As the restrictions are being eased and markets have been allowed to open conditionally, there is still some life left in the retail to fight and recover even though slowly. But if the Third Wave of the same magnitude hits the country with below-average preparedness, we may witness a collapse of Indian retail leading to huge socio-economic disturbance. Those who were banking on their savings to survive till now or have managed to borrow from money lenders to get the game going would not find a way to escape the vicious circle which we better know as the debt trap. There will be a cascading effect of the same and many sectors including manufacturing, logistics, auto etc. would have a bearing of retail sector fallout.

Retail is one such thread that keeps the entire economy connected and moving. If we recall the 2008 financial crisis, it was the unorganised sector that provided a gateway for the country to bounce back. The consumption-led economy still had huge demand, no lockdowns and circulation of funds kept things under control and the heat of the global crisis was felt in limited magnitude. But the COVID-induced situation has not been the same. On the contrary, the last 15 months has posed a big question of survival for the retail sector.

According to the Confederation of All India Traders, around 8 crore traders in India have suffered a cumulative business loss to the tune of Rs 6.25 lakh crore during April. Of this, the retail businesses suffered an estimated business loss of about Rs 4.25 lakh crore. Although subsequent lockdowns and similar restrictions can be attributed for the loss, per capita spending has also taken a backseat.

Retail outlets selling non-essential goods have already seen a temporary closure. The spike in COVID cases during each wave has infused a sense of fear among customers, which will now keep them away from the market for a longer duration, therefore, hampering the demand further.

Companies are working on the revised blueprints to remain in the markets while most of the small scale businessmen and retailers are in a helpless situation. When a significant component of the economy malfunctions, the implications can be seen across all retail categories, be it apparel, auto, lifestyle, etc. The dots can easily be connected and the latest unemployment data further adds insult to the injury.

The lockdown has led to rise in digital sales channels and has made life tough for existing offline retailers. This has impacted commercial real estate with a lack of buyers.

As far as spending is concerned, the priorities of the customers have changed. As of now, health and safety of the family have become a priority and shopping has taken a backseat. The online and e-commerce sales which helped in the survival of the sector during the First Wave also couldnt sustain those levels during the deadly Second wave, majorly because the consumer sentiment is at an all-time decline. Till the customers have a sense of health security, this priority is unlikely to change.

The two Waves have already hit the country badly and taken us backwards and there is no actual prediction as to how many more Waves may come. The bigger question is of what magnitude will be the next Wave that will hit the nation. The dent of the first two Waves would take a significant amount of time to fade and the retail backbone is not ready to take up a similar economic shock. Therefore, the need of the hour is to prepare a backup plan for the sectors which are reeling under the crisis.

The pace of vaccination needs to be further expedited so that even if there is a recurrence of COVID, a lockdown can be avoided and economic activities can go on. Also, there is a dire need for some kind of policy change that would allow retailers to cope up with the crisis. Apart from this, the government must also mull over providing a relief package for the retail sector so that it can sustain the Third Wave, else there will be a huge impact on the sector and consequently, a major impact on the overall economic development of the country.

More:

Retail sector won't be able to survive COVID Third Wave; policy change required if there is one - Free Press Journal

Hunger and malnutrition in the Arab region stand in the way of achieving Zero Hunger by 2030, UN report warns

Transforming food systems in the Arab region is crucial to ending hunger and malnutrition in the region

A United Nations study indicates that hunger in the Arab region continues to rise, threatening the regions efforts to achieve the 2030 Agenda for Sustainable Development, including the Zero Hunger goal.

The latest edition of the Regional Overview of Food Security and Nutrition in the Near East and North Africa, published today, estimates that more than 51 million people in the region are suffering from hunger.

According to the report, the "triple burden of malnutrition" consisting of undernutrition, overweight and obesity, and micronutrient deficiencies (often linked to poor diets) continue to increase at an alarming speed in the Arab region, particularly among school-age children and adults.

The report highlights that 22.5 percent of children under 5 years of age were stunted, 9.2 percent wasted and 9.9 percent were overweight. The Arab region also ranked second for adult obesity in the world in 2019, with 27 percent of the adult population obese.

Vulnerable food systems is a serious concern in the Arab region

Conflicts and protracted crises continue to be the main drivers behind the degrading hunger situation, but the regions food systems as a whole are failing to deliver the affordable, diverse, safe and nutritious food to all is exacerbating the situation, said Abdulhakim El Waer, FAOs Assistant Director-General and Regional Representative for the Near East and North Africa while commenting on the latest report.

Population growth and migration, increasing dependency on food imports, water scarcity and the threat of climate change are also putting a heavy toll on the regions food systems and increase its vulnerability, Elwaer added.

Healthy diets for ending hunger and malnutrition

This year, the report focuses its attention on the resilience of the food systems. Resilience is critical to improve food security and nutrition situation in the region, and to ensure that the regions food systems are able to resist and recover from shocks and stresses, like the COVID-19 pandemic. It also includes an in depth analysis of current dietary patterns, and the costs of diets for individuals, society, and the planet.

COVID-19 undermined the already fragile food systems in the Arab region. It is time for urgent action to transform our socio-economic policies, food system strategies and modes of economic and technological governance, to achieve their sustainability and inclusiveness, and ensure food accessibility and healthy diets for all, Ms. Rola Dashti, ESCWA Executive Secretary said.

According to the report, growing urbanization, liberalization of markets and demographic, social, economic, and political changes have been contributing to a progressive shift in the way population of the Arab region eat.

Volatile exchange rates and high prices affect many countries in the region, it is now all the more important to help the most vulnerable to grow their food, generate incomes and become more resilient in the face of these multiple shocks. The past years have shown us how economic collapse and conflict threaten to keep even bread out of peoples hands, says Corinne Fleischer, WFP Regional Director for the Middle East and North Africa. Peoples ability to put food on the table is key to the stability of societies. Hunger and uncertainty about the next meal breeds conflict and political instability.

New consumption patterns include shifting away from healthy diets, the traditional, seasonal, and more diverse diets rich in whole grains, fruits, and vegetables. They are greatly influencing the nature, scope and magnitude of nutrition problems in the region as well as the burden of diseases and risk factors associated with them.

"Despite the importance of dietary diversity for both the physical and cognitive development of children, diverse and nutritious foods are currently not accessible to all. Conflicts and political instability have contributed to inequities in access to healthy diets within and between countries of the region, said Ted Chaiban, UNICEF Regional Director for the Middle East and North Africa. Many countries in the region still show high levels of stunting or overweight in children. This underlines the need for food systems that protect, promote and support diets, services and practices that prevent child malnutrition in all its forms, he added.

Enhancing the resilience and transforming the regions food system for a better future of food

Sustainable, resilient food systems are fundamental to ensuring that people in the region and future generations eat healthy food, the Regional Overview of Food Security and Nutrition for the Near East and North Africa highlights.

The report calls on countries to transform their food systems to increase their capacity in delivering healthy diets for all, while ensuring that food production and consumption contribute to environmental sustainability.

ENDs-

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Notes to Editors:

About the report

The Regional Overview of Food Security and Nutrition for the Near East and North Africa sheds the light on the progress towards the targets of Sustainable Development Goal 2 aims at ending hunger and all forms of malnutrition in the region. It also provides projections of the number of undernourished people in the region by 2030 under a continuation of trends.

The annual report jointly produced by the Food and Agriculture Organization of the United Nations (FAO), the Economic and Social Commission for Western Asia (ESCWA), the International Fund for Agricultural Development (IFAD), the United Nations Childrens Fund (UNICEF), the United Nations World Food Programme (WFP) and the World Health Organization (WHO).

Contact

WFP

Reem Nada, WFP/ Cairo,Mob. +20 106 6663 4522reem.nada@wfp.org

FAO

Regional Communication Office for the Near East and North Africa

RNE-Communications@fao.org(+2) 02 33 316 000, extension 2777Mohamed AlaidaroosMohamed.Alaidaroos@fao.org(+971) 50 699 6411

FAO | Regional Office for the Near East and North Africa

11, AL Islah El Zerai, Dokki-Cairo, Cairo, Egypt(+2) 02 333 16000www.fao.org/neareast

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Near East and North Africa Regional Overview of Food Security and Nutrition 2020: Enhancing Resilience of Food Systems in the Arab States - World -...

The actual complexities of reality are difficult to put into structured, cohesive arguments, leading public debate toward simpler and generally binary discussions. When confronting a level of extreme complexity such as the Venezuelan crisis, Argentinas political actors tend to align themselves ideologically: to different degrees those close to the ruling Frente de Todos coalition defend the regime of Nicols Maduro, while supporters of the opposing Juntos por el Cambio coalition consider it Venezuelas government to be a dictatorship that must be toppled by any means possible. Hardliners in the opposition close to former president Mauricio Macri continue to use the electoral slogan that Kirchnerism will take us down the road to Venezuela, while their counterparts in the pan-Peronist coalition led by Alberto Fernndez and Cristina Fernndez de Kirchner deny evident human rights violations perpetrated by the Maduro regime, continuing to describe it as democratic.

In Venezuela, both Maduro and main opposition leader Juan Guaid appear to have noted the changing winds of the times, recently expressing pragmatic positions based on dialogue with each other. In his interview with Perfils Jorge Fontevecchia (published in English in this issue), Guaid repeats time and time again that its time to put all options on the table in order to ensure free and fair elections as soon as possible. He calls it his salvation plan for Venezuela. And while he continues to denounce Maduro and his henchmen as human rights violators and dictators, he makes it clear that he would be happy to see them board a plane to Cuba and be done with them, even if judicial processes are still underway at the International Criminal Court.

For his part, Maduro chatted with Bloomberg Television and, despite lambasting the Yankee imperialists, he made a thinly veiled plea to US President Joe Biden to lift crippling economic sanctions in exchange for concessions. Indeed, in the interview (also re-produced in this issue), Maduro asks for the country to be allowed to export oil, gold and other commodities in order to be able to pay bondholders, while inviting US investors to sink capital into the embattled South American nation. Over the past two years the Maduro regime has cut subsidies on everything from gasoline to credit, eliminated price controls, dropped restrictions on imports, and allowed for an ad hoc dollarisation of the economy, writes Bloombergs Erik Schatzker (who conducted the interview). The mandarins of capitalism at the International Monetary Fund couldnt have scripted it better, he adds, noting the reforms are pushed by Vice-President Delcy Rodrguezs adviser Patricio Rivera, Ecuadors former economy minister.

Whether it was Bidens electoral victory over Donald Trump in the United States or the impact of the global coronavirus pandemic on an already imploded economy, both sides of the Venezuelan grieta have publicly stated their intention to sit at the negotiating table. This is a massive step forward after years of deadlock, during which the balance of power has swayed but eventually remained in Maduros court. After several botched popular uprisings, Guaids carefully planned strategy nearly worked in toppling the Chavista regime in 2019. With Trump in the White House, the US had Venezuela in its crosshairs, while throughout Latin America a series of rightist presidents aligned themselves to form a regional block that extended over to Europe. Macri here in Argentina, Jair Bolsonaro in Brazil and Ivn Duqu in Colombia practically threw their support behind an aggressive strategy by the US that involved recognising Guaid as interim president and nearly calling for a military invasion. It almost worked, but Maduro held on.

There can be no doubts that the Boliviarian regime put in place by Hugo Chvez in 1999 has been the worst thing to happen to Venezuela in its entire history. Venezuela ranks near the very bottom of the global rankings for nearly every socio-economic indicator. Once the country with the worlds largest oil reserves and once South Americas richest nation, it has become the poorest with salaries of US$3 per month, inflation rates of 2,300 percent, and an estimated economic contraction of around 80 percent in nine years. More than five million people have fled the embattled nation looking for opportunities abroad, the second worst refugee crisis in the world after Syria.

Both Chvez and Maduro have abused the countrys democratic institutions and put in place one of the worst autocratic regimes in the world. As United Nations High Commissioner for Human Rights Michelle Bachelet put in her recent landmark report on abuses in Venezuela, extrajudicial killings, politically motivated detention and torture, protest-related violations and a compromised judiciary have become the norm the markings of a failed state.

Thus, it is extremely troubling when Alberto Fernndez says that the human rights issue in Venezuela has progressively disappeared. Or when his administration expresses abjectly contradictory positions before multilateral organisations including the United Nations and the Organisation of American States (OAS). Alberto, of course, is playing a dual game: trying to keep an internal balance in the governing coalition that spans from Boliviarian all the way to the hard right, and playing the regional geopolitical game. Its clear that in leaving the Lima Group and aligning Argentina with Mexico and Uruguay before Luis Lacalle Pou took the presidency Alberto Fernndez was looking for a negotiated de-escalation between the Maduro regime and the opposition that could lead to elections. Now, some suggest he could even act as a mediator between the opposing sides, with the backing of Pope Francis. He needs to start being a lot more careful with what he says if he aspires to play such a part.

If indeed Maduro and Guaid are ready to play ball, the final piece of the puzzle is Biden. The US has kept its cards close to the vest, indicating it would not pursue the Trumpian agenda of all-out aggression and even easing just barely certain sanctions. US Secretary of State Anthony Blinken has called Maduro a brutal dictator though, and the Biden administration will be keen to keep the pressure on Venezuela if it serves its domestic political goals.

Venezuelas collapse into one of the worlds most troubled countries is an extremely complex phenomenon, and theres many questions as to whether the process can actually be reversed. If the different actors engage and incentives are aligned, the beginning of a solution could be in the works, and Argentina could play an important role, if it figures out its own internal contradictions first.

related news

Excerpt from:

Maduro, Guaid and Alberto: the beginning of a new phase in Venezuela? - Buenos Aires Times

Authors: Maxim Sigachev and Elena Elena*

Tolerance remains a complicated issue in the West and Russia alike. The challenge, though, remains in the need to account for the connection between the notions of tolerance, social security, and the development of the society. The West tends to adopt a broader perspective on tolerance when compared to Russian practices. In Europe, the notions of tolerance is informed by active cooperation rather than merely patience, as is the case in Russia.

There are at least four dimensions to this issue in Europe:

This article is devoted to the problem of the social and political crises in Italy, which have been caused by pan-European problems (i.e., migration, anti-EU attitudes of the public) and strengthened by the national Italian conflicts (the gap between the Northern and the Southern regions, debates between the Left and the Right opposition, the rise of the populist parties etc.).

Social and political discrepancies in Italy

As a part of the EU, Italy has to get through the complex processes of adaptation to a life in a supranational union, which includes profound transformations in socio-economic, cultural, and even religious spheres. If we analyze the election agenda used by the Italian populist parties in the European elections 2019 campaign, we will notice the strong anti-EU discourse and a deep disappointment in the EU politics. Being part of the EU is conceived as a loss of independence. Further, we can notice the increasing deficit of tolerance in many spheres: religious, sociocultural, ethnic, ideological.

Research on the contemporary European political parties notes that Eurosceptical spirit is strong in developing economies and advanced economies (as is the case with Germany and the UK) alike[1]. Thus, Italys crises are not necessarily unique but can be found across the Western world as well.

The crisis of Western world order manifests itself on, at least, three levels:

The European societies are characterized by a growing alienation between the rich and the poor, the elites and the people, the establishment and the middle class.

The idea of social and political divisions was first proposed by Stein Rokkan, who studied the existing divisions between political parties that are caused by cleavages between the center and the periphery, the city and the village, etc.

Rokkans theory was developed by Paul Lazarsfeld, who studied electoral behavior and stated that people vote not only for their own social group but also in favor of it[2].

According to S. Rokkan, the European party system was developed on the foundation of existing social conflicts. Rokkan also formulated the basic lines of conflicts such as centerperiphery, statechurch, employeeemployer, citycountry. The social discrepancies of the Lipset-Rokkan theory were built on by French political scientist D.-L. Seiler in the work Whether it is possible to apply the clivages of Rokkan to Central Europe?

We can use this theory to explain the stability of the European political systems in the second half of the 20th century and electoral behavior of the Europeans.

Among the notable works on the cleavage theory are R. Rose and D. Urwin Persistence and Change in Western party systems since 1945 [3] S. Wolinetz The Transformation of Western European Party System Revisited [4]M. Abrams, R. Rose and R. Hinden[5], G. Evans and S. Whitefield The Evolution of Left and Right in Post-Soviet Russia [6].

Russian scientists rarely study the Italian political system and electoral behavior in the frameworks of the cleavage theory, as they usually study the different aspects of the political life in their research papers. There are some fundamental works that attempt to analyze facts and knowledge of Italian political thought from the perspective of the communist ideology. Cecilia Kin divided the liberal political thought into purely liberal and catholic in her work Italy at the turn of the century. From the history of social political thought, K.G. Kholodkovsky and I.B. Levin compared the Italian Socialist and Communist parties.[7]

The basic factors of social political crisis in contemporary Italy

The basic factors of the social political crisis in modern Italy can be divided into two groups. The first group includes socio-political divisions of a more historical, traditional character, whereas the second group consists of relatively new, contemporary collisions.

The North-South Divide

The contemporary socio-political crisis in Italy originates from the long-term and unfinished division between the North and the South, which has not been overcome since the Italian Risorgemento (unification) in 1861. Historically less developed Southern Italy has always faced serious difficulties. The process of modernization in Southern Italy is ongoing, the standard of living still pales in comparison to wealthy Northern regions. According to the Soviet-Russian researcher K.G. Kholodkovsky, Italy still suffers from the fact that different parts of the country existed as separate states for centuries. The most important consequence of this Italian historic disunity is economic and cultural gaps between the North and the South[8].

Polarization between the Left and the Right

The ideological conflict between the Right-wing and the Left-wing political forces also has historically contingent roots and goes back to the period of Risorgimento. In 19th century, the two leading political movementsrepublicans and monarchistsvied for leadership of a newly unified Italy.

One group of politicians led by Giuseppe Mazini tried to establish a Republican Republic, which was supported by the socialist-utopist Carlo Pisacane. Their ideas became the ideological basement for the Italian republicanism. The second group advocated for a monarchy and was led by Camillo Cavour who would later become Prime Minister of the Kingdom of Italy. Those advocating for monarchy provided a base for conservative right-wing sentiments/ideology.

In the 20th century, there was a divide between fascists and anti-fascists. Those who supported Mussolini espoused conservative views. The anti-fascist coalition united a broad spectrum of political movements including democrats, socialists, and communists.

Today it is impossible to claim that the contemporary Italian Left and Right are descendants of that original opposition, but ideological divides are still a prominent feature of Italian politics.

It would be more correct to divide the Italian parties not only along their preferences of political system but along their attitude toward traditional values as well. Today, political parties on the Right tend to be more nationally oriented and Eurosceptic. They typically advocate for traditional values and greater autonomy from EU Commission directives. They are also staunch opponents of high levels of migration from outside the EU.

The Left is more loyal to the EU and the benefits provided to Italy by its institutions. They also support more progressive economic and family policies. A key difference between left and right in Italy is migration. The left tends to be more tolerant of migrants and refugees and advocate for the integration of migrants into Italian society.

Thus, while the division between the Left and the Right has weakened, it certainly still remains intact. Due to the particularities of the national election law, it is difficult to get the majority of the vote needed and enough seats in the Italian Parliament to form the Cabinet of Ministers. Subsequently, this problem forces the Italian parties to create different coalitions to secure seats in the Parliament. These coalitions are often characterized by the ideology of party members (center-right, right-wing, etc.). This changed in 2013 when a new political party, the 5 Stars Movement, uprooted the traditional political spectrum. Now, there is no pure center-right or center-left coalition. Coalitions have become more volatile as ideological divides become deeper as compared to the situation of ten years ago. For example, the right-wing coalition which included Forza Italia! (S. Berlusconi), Fratelli dItalia (G. Meloni) and the Northern League (M. Salvini) won the parliamentary elections of 2018. Despite this result, the far-right League abandoned its ideological partners to form a Coalition Cabinet with the Five Stars Movement which cannot be defined as entirely Left or Right-wing.

New collisions

Recently (in the last decade of the 20th century and the first decade of the 21st century), new collisions emerged: Eurosceptics vs. Eurooptimists, populists vs. traditional political parties, the supporters of migrants vs. opponents of mass immigration (as well as the division between migrants and local communities).

Eurosceptics vs. Eurooptimists

The growth of Euroscepticism in Italy can be attributed to a crisis in relations between the European Union and Italy as well as disappointment from the Italian society in the EU.

Since 1957, Italy has been a strong advocate for greater European integration, however, recently Italy has begun to transform into one of the Euroscepticism centers. According to the sociological data of Eurobarometer, about 50 per cent of the Italian society is disappointed with the European Union.

The question about the relation between Euroscepticism and populism is an intellectual challenge. On the one hand, Eurosceptics are mainly populist movements: not only the anti-immigrant League but also The Five Star Movement. On the other hand, Euroscepticism has been typical for classical Italian communiststhe heirs of the Communist party of Italy. Besides, old populism of Berlusconi is more euro-optimistic than the new populism of Salvini.

Particularities of the relations between Italy and the European Union are based on a disagreement in two key issues: immigration policy and the social economic policy.

Populists vs. Traditional Political Parties

One of the results of this political crisis is the growth of social and political populism. Weinstein noted that there are a few approaches to the phenomenon of populism. According to these approaches, a hybrid phenomenon seems to exist in different dimensions: as an ideology, as a specific style of politics, and as a specific form of political organization.[9] The Italian populism started with Silvio Berlusconi coming to power in 1994. Berlusconi is perceived as the founding father of Italian populism, who managed to unite center-right forces. K.G. Kholodkovsky underlines that populism has in new conditions become a complex of sense and values, uniting many Italians in being connected with the illusion of personalistic overcoming of the gap between authorities and citizens. The breaking of the barriers between the authorities and the people has found its personification in the figure of the uniter of the center-right forces Sylvio Berlusconi[10] As noted previously, the rise of Berlusconi came against the background of the collapse of Christian Democratic and the Communist parties. This fact reflects an important feature of populism:

Pro-migrants vs. Anti-migrants

The migrant crisis manifested itself most significantly in Southern Italy, since the coast of the Italian South is the closest to the North Africa. From a geographical perspective, this fact has turned the Southern part of Italy (especially the island of Lampedusa) into a gate from Africa to Europe for immigration. The immigration issue is not a new one for Italy. There were several waves of internal migration from the Southern to the more economically developed Northern regions. This process fostered resentment between citizens from different parts of the country. However, the European immigration crises as well as burgeoning crowds transformed this internal cleavage into an external one.

The intensification of the migrant crisis in Italy and in the European Union has been reflected in public opinion. According to Eurobarometer, about half of Italians consider immigration as the most important problem for the European Union, whereas another half of the Italian society cites terrorism as the most important dilemma. This fact also demonstrates that Italians are anxious about the consequences of the immigration crisis, because illegal immigration is one of the factors of the growing terrorist threat. According to the Eurobarometer spring 2016 data, 44% of Italians pointed immigration as the most important problem of the European Union. By autumn 2016, this number rose to 49,1%, by spring 2017fell to 40%, then in autumn 2017fell again to 38%, by autumn 2018rose to 41%.

The growth of anti-immigrant sentiments in the Italian society has led to the emergence of the new nationalism, which is typical not only for the poorer regions but also for the richer ones. The figurehead of new nationalism in Italian politics is the League, formerly the League of the North, which has changed its name to appeal to broader segments of Italian society.

Thus, the migrant crisis has added a new collision between migrants and Italians. The problem of illegal migration became an accelerator of the existing Italian conflicts rather than an entirely new phenomenon. Illegal immigration has essentially accelerated these already-existing Italian conflicts.

Conclusion

Economy and culture are the two principal ingredients of the Italian mindset and are sources of intense socio-political divisions, as economic reasons lead to a rise of new divisions, as well as feeding traditional ones.

Economic crises lead to social and political crises. Nowadays, Italian voters are disillusioned with the existing political order giving way to new and less ideologically driven parties. Yet, these parties first years in power have demonstrated their weakness in taking action to overcome the existing crisis.

For example, under Giuseppe Contes First Cabinet, known as yellow-green government of change (due to the colors of the League and the Five Star Movement), inter-coalition conflict between Salvini and Di Maio led to a significant political crisis, creating a weaker position for the Five Star Movement and the ambitions of the Leagues leader Matteo Salvini for domination. On September 5, 2019, Contes Second Cabinet was formed, usually referred to as the yellow-red government, because it was supported by the yellow M5S and the center-left red Democratic party.

The internal political situation in Italy remains unstable, which also results in instability of its foreign policy. Irrefutably, the impact of the COVID-19 pandemic has contributed significantly to the Italian political crisis. On February 13, 2021, the dilemma peaked when Prime Minister Guiseppe Conte stated he would resign from office. Pro-European technocrat Mario Draghi became the newest Prime Minister of Italy in the wake of Contes resignation. Draghi leads a unity government consisting of mainstream political parties and populist parties such as the League and M5S. This government only failed to garner support of the far-right Brothers of Italy.

Although Draghi has enjoyed widespread support throughout the coronavirus crisis, in the post-covid world there are long-term prospects for conflict between Italy and the EU and between Italys internally divided political system.

*Elena Elena, PhD student at the Institute of Socio-Political Research under the Russian Academy of Sciences (ISPR RAS)

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Fostering Tolerance in Europe: Issues of Migration and Populism in Italy - Modern Diplomacy