Mario Draghi has signaled he is determined to step down as Italy’s prime minister next week because he does not have the support of all parties in his fractured governing coalition, according to people familiar with the matter, according to Bloomberg.
Italian President Sergio Mattarella rejected Draghi’s resignation on Thursday, urging him to try to shore up the support of his parliamentary allies. Draghi had offered to step down after the second-largest party in his governing coalition, Giuseppe Conte’s Five Star Movement, effectively abstained from a confidence vote in the Senate.
Draghi is unwilling to reconsider his decision to quit the government and is currently expected to reiterate that position when he addresses lawmakers in Rome on Wednesday, said the people, who asked not to be identified because the talks were private.
A spokesman for the prime minister’s office declined to comment.
Five Star leaders are due to meet today to decide how to proceed in the coming days, according to Italian media reports.
A resignation by Draghi would throw Italy into turmoil as Europe grapples with an energy crisis fueled by Russia’s war in Ukraine. And the uncertainty comes at a difficult time for the eurozone, with the possibility of a recession there rising.
A decision to quit would thwart frantic efforts by Mattarella and other political leaders to avert a government crisis ahead of Draghi’s speech on Wednesday. Market reaction to the turmoil has been relatively muted so far, as investors appeared convinced that disruptive outcomes such as early elections remain relatively unlikely.
Since being appointed by Mattarella to guide Italy through the Covid-19 pandemic in early 2021, Draghi has said he would only stay in office if he had the support of all parties in the governing coalition. He repeated the same line in recent weeks as tensions rose with Conte, who has criticized Draghi’s response to the financial crisis and has also opposed Italy’s arms shipments to Ukraine.
If Mattarella calls a new election, the vote would have to take place within 70 days. Based on current polls, a center-right coalition led by Giorgia Meloni’s Brothers of Italy would win if its members remained united. That could involve a tie-up with the League, under Matteo Salvini, who has threatened to quit Draghi’s coalition. But the political landscape is fluid and it is possible that no one group will have a majority.
Although Conte triggered the current situation, he will have to decide whether it is in his party’s best interest to hold early polls — the Five Star’s popularity has plummeted since entering government and they would likely lose seats.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
