Roman Holiday

It looked like a holiday since many stores were closed. Though it was summer vacation season, street vendors who sold water and souvenirs in front of a train station in Rome and nearby hotels finished sales at 6 p.m. Stores in tourist destinations should see brisk activity on holidays and vacations. Even if actress Audrey Hepburn was resurrected, a movie like “Roman Holiday,” the story of a short but thrilling romance in the Italian capital, could not be made.

To boost the slumping economy, Italian Prime Minister Mario Monti removed regulations on the operating hours of stores, restaurants and bars early this year. An Italian association of small- and mid-size companies strongly opposed this measure, however, saying it would merely benefit large-scale retail stores. Over the past three years, more than 10,000 small stores have gone out of business and 35,000 jobs have disappeared in Rome alone. This is not only because of competition with supermarkets. One of major culprits is the absurd perception of Italians that they are comfortable when regulations are in place. Owners of corner shops have long complained that they cannot work late at night, saying instead that consumerism is not the solution, museums instead of small stores should remain open late at night, and Rome is not New York.

Monti was elected prime minister seven months ago given his background as a technocrat with no relation to politics. The Italian people expected him to heal their ailing economy through fiscal and regulatory reform regardless of parliamentary elections next year. Corrupt politicians and bureaucrats, however, joined forces with Mafia-like businesses to oppose competition. This is why Italians are gradually turning their backs on Monti, who says competition alone boosts competitiveness. The most popular political party in Italy is the Five Star Movement, which is led by a comedian and blogger who is similar to the co-hosts of the popular Korean podcast “I Am a Cheater.”

Italy has yet to ask for a financial bailout, but cannot be complacent since its public debt is three times larger than that of Spain. The solution to the European fiscal crisis as presented by European Union leaders is tantamount to honeyed words. They have pledged to buy government bonds and support growth-oriented policies of debt-ridden countries. As seen in Latvia, which overcame an economic crisis, the best solution to a fiscal crisis is cutting government expenditures and raising competitiveness by rejecting demands for wage hikes and promoting hard work. Even though those who watched "Roman Holiday" go to Italy with the hope of experiencing a romantic atmosphere, the Eternal City looks gloomy due to the European financial crisis.

Editorial Writer Kim Sun-deok (yuri@donga.com)