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In case of a – nearly inevitable – financial catfight cage match between Team Giorgia and Christine “look at my new Hermes scarf” Lagarde at the ECB, the European Central Bank will “forget” to buy Italian bonds and then, Auguri! Welcome to a new round of EU sovereign debt crisis.

Pepe Escobar

It’s tempting to interpret the Italian electoral results this past Sunday as voters merrily hurling a bowl of lush papardelle with wild boar ragu over the collective bland faces of the toxic unelected Euro-oligarchy sitting in Brussels.

Well, it’s complicated.

Italy’s electoral system is all about coalitions. The center-right Meloni-Berlusconi-Salvini troika is bound to amass a substantial majority in both the Parliament’s Lower House and the Senate. Giorgia Meloni leads Fratelli d’Italia (“Brothers of Italy”). The notorious Silvio “Bunga Bunga” Berlusconi leads Forza Italia. And Matteo Salvini leads La Lega.

The established cliché across Italy’s cafes is that Giorgia becoming Prime Minister was a shoo-in: after all she’s “blonde, blue eyes, petite, sprightly and endearing”. And an expert communicator to boot. Quite the opposite of Goldman Sachs partner and former uber-ECB enforcer Mario Draghi, who looks like one of those bloodied emperors of Rome’s decadence. During his Prime Ministerial reign, he was widely derided – apart from woke/finance circles – as the leader of “Draghistan”.

On the financial front that otherworldly entity, the Goddess of the Market, the post-truth equivalent of the Delphi Oracle, bets that PM Giorgia will insist on the same old strategy: debt-funded fiscal stimulus, which will turn into a blowout in Italian debt (already huge, at 150% of GDP). All that plus a further collapse of the euro.

So the big question now is who’s going to be Italy’s new Finance Minister. Giorgia’s party has no one with the requisite competence for it. So the preferred candidate shall be “approved” by the usual suspects as a sort of enforcer of “Draghistan lite”. Draghi, by the way, already said he’s “ready to collaborate”.

Marvels of gastronomy apart, life in the EU’s third largest economy is a drag. Long-term growth prospects are like a mirage in the Sahara. Italy is extremely vulnerable when it comes to the financial markets. So a bond market a-go-go selloff in the horizon is practically a given.

In case of a – nearly inevitable – financial catfight cage match between Team Giorgia and Christine “look at my new Hermes scarf” Lagarde at the ECB, the European Central Bank will “forget” to buy Italian bonds and then, Auguri! Welcome to a new round of EU sovereign debt crisis.

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