The prime minister lacks the support of all coalition parties.
(Photo: dpa)
Rome Italy’s Prime Minister Mario Draghi is about to make another offer of resignation. “Against the background of last night’s vote in the Senate, I ask that the session be adjourned because I will go to the President of the Republic to inform him of my decision,” Draghi said on Thursday in the Chamber of Deputies in Rome. It could be that he submits his resignation to Head of State Sergio Mattarella again.
Draghi won the vote of confidence in the Senate on Wednesday, but not with the broad majority he desired, because the three governing parties Lega, Forza Italia and the Five Star Movement did not vote. As is usual with parliamentary decisions, the Chamber of Deputies must now also vote.
The government crisis was triggered by the Five Star Movement’s lack of confidence in the cabinet of the non-party ex-head of the European Central Bank. In a vote a week ago, the co-governing centre-left Draghi party refused to vote because of disagreements over an aid package and the construction of a waste incineration plant in Rome it contained, thereby escalating the government crisis.
Draghi then submitted his resignation to President Mattarella. However, he rejected Draghi’s request and instead ordered him to a debate in the Senate this Wednesday.
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If President Mattarella accepts a possible further resignation from Draghi this time, he could then look for someone to form a new government majority or dissolve the two chambers, which would entail a snap election. Should there be a new election, it would probably be either at the end of September or at the beginning of October. It could be weeks before a government is formed.
Markets are in turmoil
In the meantime, Italy would hardly be able to act politically, although it actually has to implement important reforms in order to secure billions in EU aid. An election campaign could also have negative consequences for the reputation and stability of the heavily indebted Mediterranean country if, for example, investors are deterred by the uncertainties.
>>Read here: Ukraine War and Euro Stability – What are the Consequences of Italy’s Government Crisis for Europe?
At the moment, according to the polls, it could be enough for a centre-right government with the EU-averse Fratelli d’Italia. That would be a bad sign for Brussels.
Italy’s bonds plummeted after Draghi failed to garner enough support from his coalition partners. The 10-year bond yield jumped as much as 19 basis points to 3.58 percent, its highest level since late June. The spread to equivalent German bonds, a common measure of risk, rose to 232 basis points.
More: Draghi wins confidence vote – but new elections are more likely