Italy: What will happen when the nationalists (populists) fail?

Italy’s key economic problem is stagn ant productivity and zero or negative potential growth, mainly explained by: Insufficient corporate investment; Low level of skills in the labour force and among young people; A low level of innovation. The League-Five Star coalition cannot correct Italy’s structural problems with its programme, which consists in boosting household income. We are now seeing a deterioration in Italy’s situation as regards employment, growth and the weight of industry. Another economic policy would be needed, supporting investment and corporate modernisation, training and education, to restore the country’s situation. We therefore know that the nationalist-populist coalition will fail in Italy. What could happen after this failure? A return of the social democrats (Democratic Party), a shift to an even more extreme nationalist policy?