Italian Prime Minister Mario Draghi is expected to resign on Thursday for the second time in less than a week, after three parties in the ruling coalition announced they would not participate in a confidence vote on his government. The renewed political deadlock comes after talks aimed at finding common ground between government departments failed. Meanwhile, Fitch Ratings Agency considers that the situation reflects “greater political uncertainty even if it is free from early elections”, making it difficult to implement structural and fiscal reforms.
The three parties affiliated with the Italian prime minister’s coalition announced after talks aimed at finding common ground between all parties failed. Mario Draghi On Wednesday it will not take part in a confidence vote for his government. Italian media reports Draghi is expected to submit his resignation to the president on Thursday Sergio Mattarella.
Forza Italia (centre-right), League (hard-left) and the populist Five Star Movement said they did not intend to vote in the Senate, potentially leading to his resignation and blocking Draghi’s attempts to resolve a political crisis early. Elections.
Draghi assumed leadership of a “national unity” government in early 2021, whose mission is to address the pandemic and the resulting economic crisis. However, on 14 July, he submitted his resignation to Mattarella, who rejected it.
The National Unity Government he leads, spanning the spectrum from the left to the far right, was deemed illegitimate by Draghi after boycotting the Five Star Movement, seeing divisions in its ranks and a decline in its popularity. Day, vote of confidence in the Senate.
In his speech to the Senate, he stressed that “the only solution is to rebuild this agreement from its foundations, with courage, commitment and credibility, if we want to remain together,” adding, “This is what the Italians demand.”
Whatever the outcome, Fitch Ratings believes it reflects “greater political uncertainty, even if early elections are avoided for the country,” making it more difficult to implement structural and fiscal reforms.
Markets are watching the situation closely. The cost of Italy’s debt rose again and Milan’s stock market fell on Wednesday, evidence of market jitters over uncertainty in the euro zone’s third-largest economy.
Draghi is a former governor of the European Central Bank, and polls show two-thirds of Italians want him to head a “Super Mario” government.
“Italy is strong in its unity,” he stressed, noting the internal challenges of economic recovery, fighting inflation and creating jobs, and the external challenges of achieving energy independence and the war in Ukraine, which Italy and the European Union will face. “We need a really strong and united government and hopefully a parliament to go with it.”
The 74-year-old banker, who has not held any political office, seemed determined with political parties that “Italy does not need the false hope of disappearing in the face of tough measures to be taken.”
“Italians will show at the polls that they are smarter than their representatives,” Democratic Party leader Enrico Letta said, referring to snap elections that could lead to Draghi’s resignation. In the end, only the center and the left sided with the former head of the European Central Bank.
Paolo Gentiloni, the European commissioner for the Italian economy, deemed the dissident parties “no responsibility”. For his part, Foreign Minister Luigi Di Maio considered it “a black page in Italy”.
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