Coming together

Follow Us Get the newsletter Mario Draghi has managed to do something almost unheard of for Italy: bring together warring parties from across the spectrum. With the 73-year-old former head of the European Central Bank building support to form a new government, his track record as a policy maker and skills as a mediator have been key to his success. As Chiara Albanese and John Follain explain, potential opponents reckon it's politically risky not to back him at a time when Italy will have a war-chest of 209 billion euros ($250 billion) in European money to save its ailing economy. Besides, he seems to harbor no long-term political ambitions of his own. The prospect of Draghi's arrival has buoyed markets, with Italian stocks and bonds rallying since he accepted the mandate to form an administration. The stakes are high: The pandemic has killed more than 90,000 in Italy and caused an economic decline of about 9% last year. Government debt is heading toward 160% of output. While the ECB's bond-buying program has kept a lid on borrowing costs, the question is how long that can be sustained. The fact that Italy's political leaders have failed to establish a stable coalition during the worst crisis since World War II speaks volumes about their inability — not for the first time — to rise to the moment. For now, they appear to be falling in line — even Matteo Salvini, whose anti-immigration League party stands most to gain if snap elections are called. Draghi's expected to conclude his talks today and he could unveil his top ministers this week. For Italy, there's no time to lose. — Karl Maier A closed restaurant in Rome on Jan. 26. Photographer: Alessia Pierdomenico/Bloomberg Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Constitutional debate | Donald Trump's second impeachment trial opens in the Senate today with a fight over whether Congress can convict a former president of a crime. If all 50 Democrats agree that it can, both House impeachment managers and Trump's defense team will begin their cases tomorrow. At least 17 Republicans would have to vote for conviction to reach the required two-thirds majority. President Joe Biden's Justice Department is preparing to ask most U.S. attorneys appointed by Trump to resign. Fast track | Biden and White House officials are siding with liberal Democrats frustrated by past failures to reach compromise with Republicans and are refusing to heed GOP appeals to scale back the administration's $1.9 trillion stimulus. As Mario Parker and Nancy Cook report, they're likely to push the package through under a procedure that requires only simple majority support in the Senate. Biden's administration has dedicated its first few weeks in office to spending more money on pandemic relief, shrugging off warnings the economy may overheat. Support is rising among policy makers to address America's worsening child-poverty crisis. Collision course | Myanmar's police toughened their stance against anti-coup protesters, firing rubber bullets at crowds in the capital Naypyidaw, blasting tear gas and water cannons at demonstrations in Mandalay and threatening protesters in Yangon with violence unless they dispersed. The youth-led pro-democracy movement — on the streets in their tens of thousands in defiance of martial law — is at risk of a violent confrontation with a military that has a history of deadly crackdowns. Green lane | With millions being vaccinated against Covid-19 every day, some political and business leaders are suggesting nations can help get life back to normal by rolling out a so-called vaccine passport: an easily accessible and verifiable certification that a person's been inoculated. A handful of projects from governments, private firms and international associations are underway. But the idea raises scientific and ethical questions. The U.K.'s plan for "surge testing" to detect and suppress new virus variants is unlikely to work unless done on a larger scale, a scientific adviser says. Vote watch | Elections are set to dominate the political calendar in emerging and frontier markets in a year when investors are focusing on how fast governments can lift their economies out of the pandemic-induced global downturn. We took a spin through the emerging market timeline to assess how the ballots may help determine the winners — and the laggards. An anti-government demonstration in Sofia, Bulgaria, in September. Photographer: NIKOLAY DOYCHINOV/AFP What to Watch Hong Kong's top court ordered media tycoon Jimmy Lai to stay in jail ahead of his trial on foreign collusion charges. President Xi Jinping said China stands ready to provide eastern Europe with coronavirus vaccines, part of efforts to reset relations harmed by the failure by Beijing to deliver on investment promises. The European Union's special envoy for mediation in Africa is due to meet with Ethiopian Prime Minister Abiy Ahmed today after the bloc accused forces from neighboring Eritrea of fueling the conflict in Ethiopia's Tigray region. And finally ... One is a seasoned public speaker, as comfortable debating his Davos counterparts in English as he is explaining the potential side effects of coronavirus vaccines. The other is Japan's prime minister. As Isabel Reynolds reports, just as Yoshihide Suga faces a pivotal moment in his leadership, he's being eclipsed by cabinet member Taro Kono, appointed three weeks ago to lead the country's inoculation rollout. Kono at a drill by Japan's Ground Self-Defense Forces in Gotemba last May. Photographer: Charly Triballeau/AFP     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 Bloomberg L.P. 731 Lexington, New York, NY, 10022