🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Italian prime minister goes to president to resign, deepening political crisis

Published 2021-01-26, 04:34 a/m
© Reuters. EU leaders summit in Brussels

ROME (Reuters) - Italian Prime Minister Giuseppe Conte went to see the head of state on Tuesday to hand in his resignation, hoping to be given the opportunity to try to put together a new coalition and rebuild his parliamentary majority.

Conte lost his absolute majority in the upper house Senate last week when a junior partner, the Italia Viva party headed by former premier Matteo Renzi, quit in a row over the government's handling of the coronavirus crisis and economic recession.

Efforts to lure centrist and independent senators into the coalition ranks to fill the hole left by Renzi have met little success, leaving Conte no choice but to resign and open a formal government crisis that will give him more time to find a deal.

President Sergio Mattarella is expected to accept his resignation and hold rapid consultations with party leaders to test the political waters.

If he thinks Conte might get the necessary backing to pull together a new administration, he will give him a few days to try to finalise a deal and draw up a new cabinet.

However, if he fails, Mattarella will have to come up with an alternative candidate deemed capable of piecing together a workable coalition. If all else fails, he will have to call elections, two years ahead of schedule.

Conte is a lawyer with no direct political affiliation, but is close to the largest party in parliament, the anti-establishment 5-Star Movement.

He first came to power in 2018 after 5-Star formed an unexpected coalition with the far-right League. When that pact unraveled a year later, he stayed on as head of a new administration involving the 5-Star and leftist parties.

The deepening crisis is playing out against the backdrop of the coronavirus pandemic, which has killed more than 85,000 Italians -- the second highest death toll in Europe after Britain and the sixth highest in the world.

© Reuters. FILE PHOTO: Italian PM Conte faces a confidence vote at the upper house of parliament, in Rome

The health crisis has triggered the worst recession in Italy since World War Two and the government has been struggling to draw up a plan on how best to spend some 200 billion euros ($240 billion) of European Union funds to help the economy recover.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.