Italy’s quandry

Mario Draghi has improved Italy’s international credibility. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( Mario Draghi isn’t officially on the ballot as Italian lawmakers move to pick a new president, but he’s without doubt a top contender. The byzantine voting process, which could last days or even weeks, usually doesn’t attract much attention outside of Italy. Key reading: - [Italian Lawmakers Fail to Elect New President in First Round]( - [Italy’s Version of Groundhog Day in Play as Draghi Eyes Change]( - [Italy Starts Presidential Election With Draghi in Pole Position]( - [Draghi’s Power Ebbs, Signaling Tougher Times for Italy]( But with more than 200 billion euros of European funds dependent on fulfilling a reform agenda at speed, the pandemic far from over, and concern over Russia’s military buildup near Ukraine, there’s understandable anxiety over Draghi’s immediate future. While as president he’d have the power to appoint a new government and dissolve parliament, [Alessandra Migliaccio]( and [Chiara Albanese]( explain that he’d also be less hands-on in the day-to-day running of the country than as prime minister. Swapping him out now as premier could unsettle the delicate balance of Italy’s parliament and potentially return the country to its chronic political instability. Many in Italy and abroad want him to stay put. A key question is who could take his place after less than a year in the chair. The former head of the European Central Bank has led a successful vaccination campaign and one of Europe’s strongest economic rebounds. After years of mixed messages and flirting with China under populist governments, Italy’s international credibility has improved with Draghi, with it reaffirming its commitment to the European Union and its alliance with America. Arguably he is helping fill the void on the continent after Angela Merkel’s departure as German chancellor. There are good reasons for him to stay on as premier and as well as to become president. He can’t, however, do both. — [Alessandro Speciale]( Draghi and Merkel speak at a news conference in Rome on Oct. 7, 2021. Photographer: Alessandro Serran/AGF Click [here]( to follow Bloomberg Politics on Twitter and share this newsletter with others too. They can sign up [here](. Global Headlines Big trouble | U.K. Prime Minister Boris Johnson’s problems [escalated]( today when the police said they will formally investigate allegations of pandemic rule-breaking parties at his Downing Street office. His premiership has been engulfed by the claims, and the probe may raise the chance that members of his Conservative Party ask him to resign. - Conservative Party member Theodore Agnew, a Treasury and Cabinet Office minister responsible for efficiency, [resigned]( after accusing Johnson’s government of failing to properly root out fraud in a pandemic loan program. Gearing up | The U.S. is putting as many as 8,500 troops on heightened [alert]( for deployment to bolster NATO forces in Eastern Europe if needed as Russian troops mass on Ukraine’s borders. While the forces aren’t being deployed yet and won’t be sent to Ukraine, it shows that President Joe Biden is seeking to send a stronger military message alongside diplomatic efforts to defuse the crisis. - You can follow all our running coverage on the Ukraine tensions via this [scrolling update](. A new analysis from McKinsey & Co. estimates that the investment in new infrastructure and systems needed to [meet]( international climate goals could be $9.2 trillion annually through 2050. That’s at least $3.5 trillion more a year than the world is currently laying out for both low-carbon and fossil-fuel infrastructure and changes in how people use land. Leaky defense | It cost $13 billion and is the newest warship in the U.S. Navy, but there’s a problem: The aircraft carrier’s combat system hasn’t demonstrated the capacity to [defend]( against anti-ship missiles and other threats. [Anthony Capaccio]( reports exclusively on a new assessment of the Gerald R. Ford by the Pentagon’s testing office. Explainers you can use - [The Showdown Over Race in U.S. College Admissions]( - [China’s Vast Blueprint for Tech Supremacy Over U.S.]( - [‘Crypto Winter’ Fears Send Chills to Battered Bitcoin Faithful]( Power grab | The army in Burkina Faso removed President Roch Marc Christian Kabore, the fourth [coup]( in West Africa and the sixth on the continent in the past 18 months. Kabore had faced criticism for his government’s failure to tackle a mushrooming Islamist insurgency that’s destabilized Mali, Niger and other countries in the semi-arid Sahel region. Best of Bloomberg Opinion - [Why Germany Will Regret Its Nuclear Shutdowns: Bloomberg Opinion]( - [High Court Won't Uphold College Affirmative Action: Noah Feldman]( - [China Should Prepare to Live With Covid, Not Beat It: Editorial]( Protest politics | Australian Open organizers today [reversed]( a ban on political slogans on t-shirts following criticism after some attendees were removed from a weekend match for wearing shirts saying “Where is Peng Shuai?” in support of the Chinese tennis star. Tennis Australia said it would now allow spectators to wear such statement clothing, as long as they behaved themselves at the event. Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - North Korea appears to have fired two cruise missiles toward waters off its east coast, South Korea said, adding to a [barrage]( of tests this month. - The Mexican government pledged to [investigate]( the killing of a journalist, the third reporter assassinated this year in the Western Hemisphere’s most dangerous country for the press. - A senior EU official is heading to San Francisco this week to warn tech companies that legislation compelling them to help [combat]( child sexual abuse content is coming. - Indonesia will hold its next general election in February 2024, easing [speculation]( that President Joko Widodo would seek to extend his second term. - Unprecedented rains in large parts of South Africa’s most important farming provinces have [caused]( floods and crop damage, adding to concern that climate change is making weather cycles more erratic. And finally ... In the shadow of a lake that once produced hundreds of billions of dollars for government coffers and made [Venezuela]( one of the richest nations on Earth, a picture of the country’s post-oil economy is taking shape. Shrimp farms are popping up all over the low-lying, flood-prone lands of the Lake Maracaibo basin, a latticework of massive pools that grow the dark-orange shrimp preferred by diners in many parts of Europe and Asia. The remnants of Venezuela’s oil boom dot the horizon on Lake Maracaibo. Photographer: Gaby Oraa/Bloomberg Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022