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The recent passing of Silvio Berlusconi, the former Italian Prime Minister and businessman, marks the end of an era in European politics. Berlusconi, a prominent figure in Italian politics for over two decades, has left a significant imprint on the European economic landscape and on Italy and Europe as a whole.

During his three terms as Prime Minister of Italy (1994-1995, 2001-2006, 2008-2011), Berlusconi pursued a range of economic reforms aimed at boosting Italy’s sluggish economy. He prioritized measures to reduce bureaucracy, simplify regulations, and stimulate private investment. His government implemented labor market reforms, including making it easier to hire and fire employees, with the aim of increasing flexibility and reducing unemployment. It also let to increased tax reforms and fiscal policy transformation not only of Italy but of the whole Europe. Berlusconi’s tenure witnessed several tax reforms aimed at reducing the tax burden on individuals and businesses.

Berlusconi’s relationship with the European Union (EU) was complex and often strained. His political career was marked by a skeptical stance towards further EU integration. This perspective often clashed with the EU’s push for deeper integration, including the establishment of the euro and the implementation of common policies in various areas. Berlusconi’s resistance to EU integration occasionally strained Italy’s relationship with other EU member states. One of the most critical moments in Berlusconi’s relationship with the EU occurred during the Eurozone debt crisis in 2011. Italy faced significant economic challenges, including soaring public debt and a stagnant economy. Berlusconi’s government came under scrutiny for its handling of the crisis, which led to a loss of confidence in Italy’s economic stability. EU institutions and other member states pressed for fiscal austerity measures and structural reforms, which Berlusconi’s administration struggled to implement. tenure was marked by periodic clashes with EU institutions, particularly the European Commission. These tensions strained the relationship between Italy and the EU, leading to increased scrutiny and pressure on the Italian government.

His leadership during the Eurozone debt crisis in 2011 exposed Italy’s vulnerability and raised concerns about its fiscal stability. Despite this, Berlusconi’s economic legacy was marked by his response to the global financial crisis of 2008. His government implemented stimulus packages and enacted measures to stabilize the banking sector, safeguarding the Italian economy from the worst effects of the crisis. Berlusconi’s economic legacy is not without criticism. Detractors argue that his policies favored the interests of his business empire and his political allies, leading to allegations of corruption and conflicts of interest. Moreover, his governance style, marked by political instability and personal scandals, undermined investor confidence and hindered economic progress.

Written by: Nenad Stekić