Political Instability and Economic Signals

French Prime Minister Bayrou is expected to resign, having lost a parliamentary vote of confidence related to fiscal proposals. Assuming someone can be persuaded to take the job, that means five French prime ministers in under two years. Political turnover, debt, demographics, etc. invite parallels to 1990s Italy—but in drawing such parallels, it is worth remembering that Italy managed its debt position perfectly well over that period.