Italian Prime Minister Mario Draghi handed over his resignation to President Sergio Mattarella this Thursday (21) after a rupture in his governing coalition, plunging the country into political turmoil and hitting financial markets.
Mattarella’s office said in a statement that the head of state had “taken note” of the resignation and asked Draghi to remain an interim.
The statement did not indicate Mattarella’s next actions. Political sources said earlier this week that the president could dissolve parliament and call early elections in October.
Mattarella plans to meet the presidents of both houses of the Italian parliament on Thursday afternoon.
Italy’s coalition fell apart on Wednesday as three of Draghi’s top partners boycotted a vote of confidence he had called to try to end divisions and renew their fractured alliance.
The political crisis ended months of stability in Italy, during which Draghi helped shape Europe’s tough response to Russia’s invasion of Ukraine and elevated the country’s standing in financial markets.
Italian bonds and stocks fell sharply on Thursday as markets braced for the European Central Bank’s first interest rate hike since 2011.
“It is a huge blow to Italy’s ability to deliver policies and reforms in the short term,” said Lorenzo Codogno, head of LC Macro Advisers and a former senior official at the Italian Treasury. “There will be delays and disruptions with early elections and probably no budget by the end of the year.”
Draghi had already resigned last week after one of his partner parties, the populist 5 Star Movement, failed to support him in a vote of confidence on measures to tackle the high cost of living.
Mattarella rejected the resignation and told him to go to parliament to hold the broad coalition until the planned end of the legislature in early 2023.
In a speech to the Senate, Draghi called for unity and laid out a range of issues facing Italy, from the war in Ukraine to social inequality and rising prices.
But the 5 Star Movement once again decided not to support him. In addition, the right-wing parties Forza Italia and League decided to boycott the vote.
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
