Three thoughts on the politics of Italy’s cities

Rome! Image: Bert Kaufmann/Wikimedia Commons.

In a World Cup year, most Italians talk about one thing only: the national football team. But as Italy did not qualify for this summer’s tournament, the general elections in March and their aftermath have instead been the main topic of conversation for people in cities across the peninsula.

The international media coverage has largely focused on the implications of the new populist coalition government for Europe. However, the elections and their aftermath also raise interesting questions about the changing political outlook of cities across Italy, and the challenges this poses to national policy-makers. These issues have relevance to UK politics too - and in this blog, we unpack what we think are the three main takeaways from the Italian situation.

1) In a divided country, top-down policy-making is increasingly inadequate

Like the UK, Italy also has a North-South divide. But it is the other way round: in 2016 GDP per capita in the South was 44 per cent lower than in the Centre-North area.

This economic divide has given rise to a political divide, too. For the first time in Italian politics, no party can claim to represent the whole country. This has resulted from a clear north-south split. The League – a rebranding of the old Northern League – remains the party of the economically successful North, and it continues to make lower migration and lower taxation its main priorities. The Five Star Movement is now the party of the less successful South, where unemployment and low wages are the main issues.

That the parties in power represent different economic realities could mean that the national government takes into account the different challenges that places face, which would certainly be a positive thing. But it could also mean that national policy becomes the sum of different disjointed economic policies rather than a coherent economic strategy.

We see some of the latter happening already. For example, the agreement between the two populist parties proposes both a basic income, a policy of the Five Star Movement, and a flat tax, a policy of the League. The popularity of basic income results from high unemployment in the South. As our European cities data tool illustrates, more than one in four people in cities like Catania, Naples and Palermo is out of work. And a flat tax would mostly benefit Northern Italy, with wages highest in cities such as Bolzano, Milan and Bologna. This results in an incoherent approach to national economic policy.

What this points to is the difficulty of top-down policymaking in a divided country, and the inadequacy of a one-size-fits-all approach to policy in addressing the diverse challenges that different places face. Given the extent of the UK’s political and economic divides, this is a lesson policy-makers here cannot afford to overlook.

2) But Italian cities are better placed than UK cities to overcome national political gridlock

In Britain, since the vote for Brexit, many major policy issues have been put to one side so that the government can get on with negotiations with the EU, including the city region devolution agenda. Meanwhile, the Government has also been hamstrung by its failure to secure a clear majority in 2017 general election. Both of these factors have contributed to gridlock and stasis at the national political level, and a lack of clear policy direction for the government.

In Italy, this kind of instability and gridlock at the national political level is nothing new. The peninsula has had 65 governments since 1945, averaging a change in administration every 13 months. However, unlike in the UK – where political power remains largely concentrated in Westminster – decentralisation has been an essential feature of the Italian system since the early days of the post-WWII republic, and has been enhanced since.

As a result, regions and Italian metropolitan cities have powers over, among other things, infrastructure, strategic development, schools and integrated services provision. This means that in times of national stalemate – which in the Italian case is more often than not – places are still able to take action and tailor policy to their needs.

Despite the progress made in city region devolution in the UK over recent years, urban areas across the country still lack the powers and resources they need to grow their economies. The government should use its forthcoming Devolution Framework to as an opportunity to go further on this front, with the immediate priority being to extend devolution deals to the remaining big cities in England yet to agree one.


3)  Mainstream parties should not take cities for granted

While populist parties have made gains across Italy, the centre-left and left remain mainly in charge of large cities (Milan, Naples, Palermo) with the centre-right keeping control of a few others (Genoa, Venezia). And this is also what we saw in the recent metro-mayoral elections in the UK with Labour and Conservatives winning all the posts.

But mainstream parties should not take cities for granted. Firstly, while local elections are not isolated from national politics, they can also act as referenda on the candidate or the record of incumbent mayors/councillors, making them open to outsiders. And Italy provides an example of this complex relationship between local and national politics, as well as the possibility of a political shift at the local level.

For example, after years of poor administration by both the centre-left and centre-right in Rome, political control of the city passed into the hands of the insurgent Five Star Movement in 2016. And in the most recent local elections, the League has won cities in Tuscany that for decades have been the strongholds of the centre-left.

There are two lessons here for the UK. Firstly, there is no room for complacency among mayors and other city leaders, who need to deliver on their economic agenda and make the most of their mandate to avoid the kind of backlash against mainstream parties seen in Italian cities.

Secondly, the national government needs to empower city leaders with the tools and funding they need to address the challenges their places face. This will not only be crucial for the prosperity of their cities: it will also be important in staving off the political disillusionment which was evident in the vote for Brexit.

In both Italy and the UK, the political outlook for the coming years is deeply uncertain. But what is clear is that empowered cities, which have real scope to act on the issues that matter most to their economies, have the best chance of thriving in times of national political stasis.

Italian cities are well-placed to do so, but the same is not true of UK cities. This needs to change if people and places across the country are to prosper.

Gabriele Piazza and Elena Magrini are researchers at the Centre for Cities, on whose website this article originally appeared. You can hear them discussing the politics of Italian cities on Skylines, the CityMetric podcast, here.

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A new wave of remote workers could bring lasting change to pricey rental markets

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus. (Valery Hache/AFP via Getty Images)

When the coronavirus spread around the world this spring, government-issued stay-at-home orders essentially forced a global social experiment on remote work.

Perhaps not surprisingly, people who are able to work from home generally like doing so. A recent survey from iOmetrics and Global Workplace Analytics on the work-from-home experience found that 68% of the 2,865 responses said they were “very successful working from home”, 76% want to continue working from home at least one day a week, and 16% don’t want to return to the office at all.

It’s not just employees who’ve gained this appreciation for remote work – several companies are acknowledging benefits from it as well. On 11 June, the workplace chat company Slack joined the growing number of companies that will allow employees to work from home even after the pandemic. “Most employees will have the option to work remotely on a permanent basis if they choose,” Slack said in a public statement, “and we will begin to increasingly hire employees who are permanently remote.”

This type of declaration has been echoing through workspaces since Twitter made its announcement on 12 May, particularly in the tech sector. Since then, companies including Coinbase, Square, Shopify, and Upwork have taken the same steps.


Remote work is much more accessible to white and higher-wage workers in tech, finance, and business services sectors, according to the Economic Policy Institute, and the concentration of these jobs in some major cities has contributed to ballooning housing costs in those markets. Much of the workforce that can work remotely is also more able to afford moving than those on lower incomes working in the hospitality or retail sectors. If they choose not to report back to HQ in San Francisco or New York City, for example, that could potentially have an effect on the white-hot rental and real estate markets in those and other cities.

Data from Zumper, an online apartment rental platform, suggests that some of the priciest rental markets in the US have already started to soften. In June, rent prices for San Francisco’s one- and two-bedroom apartments dropped more than 9% compared to one year before, according to the company’s monthly rent report. The figures were similar in nearby Silicon Valley hotspots of San Jose, Mountain View, Palo Alto.

Six of the 10 highest-rent cities in the US posted year-over-year declines, including New York City, Los Angeles, and Seattle. At the same time, rents increased in some cheaper cities that aren’t far from expensive ones: “In our top markets, while Boston and San Francisco rents were on the decline, Providence and Sacramento prices were both up around 5% last month,” Zumper reports.

In San Francisco, some property owners have begun offering a month or more of free rent to attract new tenants, KQED reports, and an April survey from the San Francisco Apartment Association showed 16% of rental housing providers had residents break a lease or unexpectedly give a 30-day notice to vacate.

It’s still too early to say how much of this movement can be attributed to remote work, layoffs or pay cuts, but some who see this time as an opportunity to move are taking it.

Jay Streets, who owns a two-unit house in San Francisco, says he recently had tenants give notice and move to Kentucky this spring.

“He worked for Google, she worked for another tech company,” Streets says. “When Covid happened, they were on vacation in Palm Springs and they didn’t come back.”

The couple kept the lease on their $4,500 two-bedroom apartment until Google announced its employees would be working from home for the rest of the year, at which point they officially moved out. “They couldn’t justify paying rent on an apartment they didn’t need,” Streets says.

When he re-listed the apartment in May for the same price, the requests poured in. “Overwhelmingly, everyone that came to look at it were all in the situation where they were now working from home,” he says. “They were all in one-bedrooms and they all wanted an extra bedroom because they were all working from home.”

In early June, Yessika Patapoff and her husband moved from San Francisco’s Lower Haight neighbourhood to Tiburon, a charming town north of the city. Patapoff is an attorney who’s been unemployed since before Covid-19 hit, and her husband is working from home. She says her husband’s employer has been flexible about working from home, but it is not currently a permanent situation. While they’re paying a similar price for housing, they now have more space, and no plans to move back.

“My husband and I were already growing tired of the city before Covid,” Patapoff says.

Similar stories emerged in the UK, where real estate markets almost completely stopped for 50 days during lockdown, causing a rush of demand when it reopened. “Enquiry activity has been extraordinary,” Damian Gray, head of Knight Frank’s Oxford office told World Property Journal. “I've never been contacted by so many people that want to live outside London."

Several estate agencies in London have reported a rush for properties since the market opened back up, particularly for more spacious properties with outdoor space. However, Mansion Global noted this is likely due to pent up demand from 50 days of almost complete real estate shutdown, so it’s hard to tell whether that trend will continue.

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus, but many industry experts say there will indeed be change.

In May, The New York Times reported that three of New York City’s largest commercial tenants — Barclays, JP Morgan Chase and Morgan Stanley — have hinted that many of their employees likely won’t be returning to the office at the level they were pre-Covid.

Until workers are able to safely return to offices, it’s impossible to tell exactly how much office space will stay vacant post-pandemic. On one hand, businesses could require more space to account for physical distancing; on the other hand, they could embrace remote working permanently, or find some middle ground that brings fewer people into the office on a daily basis.

“It’s tough to say anything to the office market because most people are not back working in their office yet,” says Robert Knakal, chairman of JLL Capital Markets. “There will be changes in the office market and there will likely be changes in the residential market as well in terms of how buildings are maintained, constructed, [and] designed.”

Those who do return to the office may find a reversal of recent design trends that favoured open, airy layouts with desks clustered tightly together. “The space per employee likely to go up would counterbalance the folks who are no longer coming into the office,” Knakal says.

There has been some discussion of using newly vacant office space for residential needs, and while that’s appealing to housing advocates in cities that sorely need more housing, Bill Rudin, CEO of Rudin Management Company, recently told Spectrum News that the conversion process may be too difficult to be practical.

"I don’t know the amount of buildings out there that could be adapted," he said. "It’s very complicated and expensive.

While there’s been tumult in San Francisco’s rental scene, housing developers appear to still be moving forward with their plans, says Dan Sider, director of executive programs at the SF Planning Department.

“Despite the doom and gloom that we all read about daily, our office continues to see interest from the development community – particularly larger, more established developers – in both moving ahead with existing applications and in submitting new applications for large projects,” he says.

How demand for those projects might change and what it might do to improve affordable housing is still unknown, though “demand will recover,” Sider predicts.

Johanna Flashman is a freelance writer based in Oakland, California.