The rise of the Vallenzi

IN THE smouldering economic landscape of the euro zone, the future is riding on two men. In France Manuel Valls (pictured, right) is leading the most reformist government in years (see article). In Italy, whose economy is in even worse shape than France’s, Matteo Renzi (the hugger on the left) is also talking of change. Both have been in office for barely half a year and have a promising Blairite agenda. But the Vallenzi are also open to the same criticism: that as far as reform goes, they are all mouth and no trousers.

France and Italy pose a grave threat to the single currency. They are the euro zone’s second- and third-largest members. Growth in France is flat and unemployment stuck at over 10%. The budget has not been balanced for 40 years, and public spending takes 57% of GDP—far the highest in the euro zone. Italy is no better. It is in recession, and its debt is over 130% of GDP.