(The article is a revised version of EUI Working Paper SPS 1994/12.) http://hdl.handle.net/1814/254Several analysts have explained the end of the postwar political system in Italy as an effect of the end of the Cold War. Deprived of the anti-communist glue, Italians were, so the story goes, finally free to replace the corrupted regime. The present article argues instead that the recent changes should be seen as the effect of transnational and societal dynamics on modern welfare states that have upset the consociational/clientelistic bargain on which Italy's domestic political economy rested. The success of the judiciary campaign mani pulite ('clean hands') has been triggered by the concomitant financial crisis of the state, its parties and ...