Italy news: What is happening in Italy? Latest news on political crisis
Prime Minister-designate Carlo Cottarelli, appointed by president Sergio Matarella as a stop-gap PM to manage the situation and formulate plans for repeat elections, indicated today that a breakthrough could be possible on. What is happening in Italy? The crisis, prompted by inconclusive elections in March, has thrown financial markets into a state of uncertainty. Stock markets have been strained as, three months on, no government has been formed. Two populist parties - The 5-Star Movement and League - came close to forming a coalition last weekend, but the talks fell apart after Italy’s president Sergio Matarella rejected their proposed finance minister.
Mr Matarella said he could not appoint the Eurosceptic Paulo Savona to the finance minister post due to concerns from investors at home and abroad. Instead, he called on Mr Cottarelli to form a government. The move, rare for the president, sparked fury with 5-Star and League, who insisted that they would reject Mr Cottarelli’s official appointment in parliament. What happened today? Mr Cottarelli was quoted by the Italian news agency ANSA as saying that new options were on the table “for the birth of a political government.” This implies that a government of politicians, rather than technocrats like himself (essentially this means experts - Mr Cottarelli is an economist and the former director of the IMF, not a politician).
Getty President Sergio Matarella rejected the choice of finance minister
Mr Cottarelli said: "These circumstances, also considering the market tensions, have caused me to wait for further developments." What are the parties saying? 5-Star seems willing to rethink its earlier position, with reports from a source close to the party claiming they were trying to find “a point of compromise on another name” for finance minister. However, leader of the right-wing League Matteo Salvini seemed more stubborn, insisting the country should return to the polls instead. Mr Salvini said: "The earlier we vote the better because it's the best way to get out of this quagmire and confusion.”
Getty / Epa 5-Star leader Luigi Di Maio, left, and League leader Matteo Salvini, right
He did, however, seem open to discussion around when the election should be held, and invited Mr Mattarella to “explain to us how we can get out of this situation.” Despite these comments from both parties, a source close to the League said that the party was not willing to compromise on the choice of finance minister, the sole obstacle in this deadlock. Will Italy leave the EU? Italy was one of the six founding members of what later became the European Union, and the rise of Euroscepticism is causing concern amongst markets that fear Italy breaking with the Euro would destabilise the bloc. It is predicted that repeat elections would provide the populist parties with enough support to form a Eurosceptic government.
Getty Prime Minister-designate Carlo Corrarelli