Italian Prime Minister Giuseppe Conte resigned after losing a majority in the Senate, plunging the country into political turmoil as it battles epidemics and economic stagnation.
Weakened by the rebellion of our young colleague, Conte offered his resignation to President Sergio Mattarella on Tuesday, according to a statement from the presidency. The head of state, who oversees efforts to form new governments, will hold talks with party leaders before appointing a new coalition, the statement said.
Conte wants a new building authority that will be his third government in four years. His plan, according to officials familiar with his ideology, is to build a broad coalition with non-Europeans and non-aligned lawyers – and possibly to bring back other members of Italy’s Alive faction of Prime Minister Matteo Renzi, who left his second term earlier this month.
But Mattarella could also decide whether anyone would run in the by-elections to pull the majority out of a divided parliament, or whether elections were needed to restore order in the country.
After fighting for two weeks to strengthen his position, Conte’s hand was forced in the hope of losing the Senate vote to lawmakers just because of Wednesday. The defeat there would have undermined his authority and reduced his chances of being given a new opportunity by Mattarella, according to an official who spoke before resigning.
The turbulent period confused many Italians, with more than 400 people a day dying while Conte and Renzi were arguing and growing evidence of continued public money laundering. But it was also uncomfortable with Conte’s willingness to use emergency power just as the European Union’s recovery package hopes raise the stakes.
Officially, Renzi and Conte’s dispute was sparked by disagreements over how to spend 209 billion euros ($ 250 billion) and how money should be managed. But there is also the realization that whoever is in power for the next two years is standing to reap political benefits from that spirit.
Compared to previous periods of political instability in recent years, Italian bond markets have been relatively stable, largely due to the support provided by the European Central Bank stimulus. The 10-year national harvest spread over Germany, which is a major risk measure, reached its lowest level about five years earlier this month and is still selling less than 20 points above the 120 basic points.
In the meantime, the Treasury is beginning to play a key role in the financial crisis this year as some extended locks delay recovery, said a senior government official.
Treasury models show that the budget deficit could reach 9.2% of production this year, the official said. The government is also looking at the state of the economy and could see that the economy is growing at a slower rate of 4.5% in the worst case scenario, according to the official. Government official estimates from October increase by 6%.
For 56-year-old Conte, a lawyer who was taken to Florence academia to lead his first government in 2018, is the second time he has seen his coalition collapse. When Matteo Salvini of the anti-immigrant League left Conte in 2019, the Prime Minister was replaced by the Democratic Party on the left.
At the moment, the main allies of the Democrats and Conte, the Five Star Movement, are divided on whether to negotiate with Renzi or not, with many believing he will not be trusted after snatching the coalition for months and ousting officials. it said. Another thought that delayed Conte’s resignation was the concern that Renzi would want to replace him with another prime minister.
While some of the Prime Minister’s candidates have raised hopes of a run-off election, the union’s leaders still see it as an impossibility, officials said. Conte’s supporters fear that the center-right will win the snap vote, and fewer seats will be available after parliament is reduced to a constitutional amendment.
Polls indicate that Five Star will deal with depression and Renzi’s team could be disbanded.