Populist leaders in Italy failed to form a government – ANZ

The prospect of a new vote, however, roiled financial markets in Italy, which is Europe’s third-largest economy, and around the world. Clearly hinting at a plot between the president and the guardians of euro-zone orthodoxy, Mr Salvini said Mr Mattarella had “represented the interests of other countries; not of the Italians”.

“In the absence of [parliament’s] confidence, the government would resign immediately and its main function would be the management of ordinary affairs until elections are held after the month of August”, he said.

“The only thing that is certain now is that there is a majority in parliament that can propose and approve laws, and the first thing we will do is start a discussion on a new electoral law”, he said. In Brussels, too, the initial relief at dodging the bullet of a Euro-skeptic finance minister quickly gave way to concern that Mr. Mattarella’s move had fueled anti-European feeling in Italy.

Last week his known criticism of the euro and German economic policy further spooked financial markets that were already concerned about the future government’s willingness to reign in the massive national debt, worth 1.3 times its annual output. The problem, Di Maio says, is the political uncertainty, which they could have soothed by forming a government.

At a rally on Tuesday evening in Naples, Five Star leader Luigi Di Maio appeared to relaunch the idea of a coalition government with the League without a return to the polls.

Di Maio and Matteo Salvini finally made a decision to join forces but each vetoed the other for the prime minister post.

Mattarella rejected Conte’s list of potential ministers due to the candidacy of Paolo Savona, who was proposed as a candidate for minister of economy. The anti-immigrant, right-wing League and the anti-establishment 5-Star Movement eventually set aside populist rivalries to draft a coalition platform, which included plans for a flat-tax, rolling back pension reforms and government subsidies to the unemployed.

“President Mattarella has only exercised his constitutional powers”, said Massimo Luciani, president of the Italian Constitutionalists Association.

Di Maio denounced the replacement of “a government with a majority with one that won’t obtain one” and called for the president to be impeached.

As soon as Conte took his first step on the political stage, it was revealed that he had inflated his CV with false claims of appointments as a researcher at various universities in the US and Europe.

Cottarelli’s planned government will be “wholly neutral” and he will not stand as a candidate in the next elections, he said.

“I think Italians had expressed themselves and what happened seems to be wanting to cancel the sign of this expression, so, even if I don’t really know Cottarelli, we are left with a bitter taste in the mouth”, said one Rome local. “The sooner we vote the better”.

Upon accepting a mandate from the president to form a technocratic and politically “neutral” government, Mr Cottarelli said his first task was to introduce a programme to parliament, including next year’s budget.

Mr Cottarelli, 63, may serve as both premier and finance minister, the official said.

Since the March 4 elections in Italy, day-to-day governance is still in the hands of outgoing prime minister Paolo Gentiloni.

For the second time in a week, Italian President Sergio Mattarella has given a mandate to form a new government to an obscure and low-key figure with an impressive curriculum vitae.

“I can only hope that this will play a role in the election campaign. sending a signal to voters not to hand power to populists on the right and left”, he told German broadcaster Deutsche Welle.

However, it’s not clear that the right will survive the current crisis.

Mr Mattarella defended his rejection of Mr Savona, who he said was determined to pull Italy out of the currency it had created. They’re effectively saying “you can’t have that, they must be pro-Europe”‘.

European stock markets recovered at the open of trading on Wednesday following sharp losses triggered by the turmoil in Italy. “But certainly Italy has been pushed a bit to the margins”.

Mr Cottarelli, an economist, is a former International Monetary Fund official who firmly believes in the eurozone project and in the necessity for Italy to cut its high debts.

Nearly three months after a general election, Italy is still without a government.