The headlines have all been abuzz over the resignation of Italy's veteran president Giorgio Napolitano setting the stage for the election of a new head of state. Italy’s long-serving president heralding a period of political uncertainty in which Matteo Renzi, the prime minister, may struggle to muster the consensus to find a successor. President Napolitano’s resignation was no surprise – he had signaled his intention to step down weeks ago, saying that at the age of 89 he was looking forward to a rest. It is just a difficult time for the Eurozone, especially now with the Greek political antics unfolding once again. The resignation of Napolitano ups the international spotlight back on Prime Minister Matteo Renzi. At the age of 39, Renzi overtook Benito Mussolini's record as the youngest person to become Prime Minister of Italy since unification in 1861. He is also the first to be elected Prime Minister as a Mayor. On February 13th 2014, following tensions between Prime Minister Enrico Letta and Renzi, President Giorgio Napolitano removed Letta as Prime Minister. The Democratic Party leadership voted heavily in favor of backing Renzi's call for "a new government, a new phase and a radical program of reform". Minutes after the Party backed the Renzi proposal Renzi was made head of the part and Prime Minister. In less than a year he’s made big changes to governance, dramatically liberalized labor laws, slashed short-term taxes on new hires, promised to halve the size of Parliament, and rekindled hope for his economically beleaguered country. But Renzi needs help. He knows that Italy must invest, particularly in education, broadband technology and clean energy. Yet with unemployment at 13 percent, he dare not raise taxes. As for borrowing to invest, even when the investment will pay for itself, that’s a no no thanks to German Chancellor Angela Merkel’s enforcement of the European Union’s Stability and Growth Pact. Voting must start within 15 days and the successful candidate must garner two-thirds of support. In order to achieve that, Mr Renzi and his Democratic Party may well have to do a deal with Mr Berlusconi, who despite having been swept up in “bunga bunga” sex scandals and corruption trials remains a political force to be reckoned with. The new president will need to be "a great arbitrator who will help the country to grow", Mr Renzi said. By Barry Norman, Investors Trading Academy

• published: 21 Jan 2015
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