Italy’s Prime Minister Giuseppe Conte is struggling to seize power after ousting a junior partner in his coalition, robbing him of his majority in Parliament.
Former Prime Minister Matteo Renzi said on Wednesday night that his Italy Zinda Party ministers would leave the cabinet, attacking Conte for failing enough to deal with the country’s problems. Although the party is small, Conte relied on it to maintain a majority. Can ask for confidence vote in Parliament next week, Including newspapers La Repubblica reported.
Renzi’s decision has given rise to a government crisis that may last days or even weeks, and there is no clear solution. Before making any other moves, Conte would have to formally accept the resignation of Renzi’s two ministers.
Nevertheless, Conte has several avenues to remain in power, or to return to the premiere later:
- He could have tried to win the confidence vote with the support of both in and out of the current government, and disgruntled MPs. This could mean relying on forces like Silvio Berlusconi’s Forza Italia Party to keep the government in power. Conte has agreed with President Sergio Mattarella to avoid a confidence measure until a new relief and deficit law is passed, La Repubblica reported.
- He can step down, which will start a new round of dialogue between the parties. Finally a new administration may be formed under Conte’s chairmanship.
- President Mattarella, whose mostly ceremonial role also includes responsibilities for safeguarding political stability, can establish a caretaker administration to manage the government until the last election. A placeholder administration may give Conte time to conduct future election campaigns.
- A broad coalition, including coalition parties and possibly center-right forces, could also try to form a government under a figure such as former European Central Bank President Mario Draghi.
- Snap elections, though a risk, seem to be only a remote possibility for now. The president – who has the authority to call a new vote – is said to be reluctant to watch the country’s vote during the epidemic. “A snap vote, the worst scenario for investors, is unlikely at this stage,” said Lorenzo Pregliasco, a political analyst at YouTrend.
Is from italy Ten years The yield rose 1.1 points to 0.61%, with the spread of German debt rising to 113 basis points. Any slip in Italian bonds is an opportunity to enter the market as snap elections are unlikely to give “impetus” to manage EU recovery money and tight timeline to organize a vote, Citigroup strategists led by Aman Bansal said.
‘Act of courage’
Renzi said at a Rome news conference that such an important moment for the country is the “moment of courage”. Conte’s government has not done enough to solve problems ranging from education to infrastructure, the former prime minister said.
The crisis can hardly be worse for Conte, with Italy struggling with a bad epidemic and recession. In a cabinet meeting to be held on Thursday, Conte is set to sign a plan to reduce the country’s deficit by nearly 24 billion euros ($ 29 billion), while overnight his government calls on its emergency to fight the epidemic from April 30. Powered up.
Renji had been pressurizing Conte since late last year, slamming the Prime Minister’s plans to manage and spend the EU’s rescue fund. Renzi says that the plan has been reformed following his demands, but he is insisting on further terms, including that Italy use a European Stability Mechanism credit line for health spending.
“The real issue is, should we spend more money on health with ESM?” Renzi said after his announcement on Wednesday.
– With the help of Marco Bertache, Neil Chatterjee and Samuel Dodge
()Updates with Bond in the sixth paragraph.)