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Italy: cancelled League rallies signal political impasse may soon end Italy: cancelled League rallies signal political impasse may soon end
(about 1 hour later)
The leader of the Italian far-right party the League, Matteo Salvini, cancelled political rallies to return to Rome early on Thursday, in what was seen as a sign that a weeks-long political impasse that has left the country without a fully-functioning government for months might soon be coming to an end. The leader of the Italian far-right party the League, Matteo Salvini, has cancelled political rallies to return to Rome, in what was seen as a sign that a political impasse that has left the country without a fully functioning government for months may soon be coming to an end.
Salvini was heading back to the capital to meet with his coalition partner, Luigi Di Maio, the 31-year-old head of the anti-establishment Five Star Movement, after the Italian president gave the pair more time to form a government. Salvini was heading back to the capital to meet his coalition partner, Luigi Di Maio, the head of the anti-establishment Five Star Movement, after the Italian president, Sergio Mattarella, gave the pair more time to form a government.
Italian press reports indicated that any agreement to form a new populist government involving the League, formerly known as the Lega Nord, and M5S would include the nomination – again – of Giuseppe Conte, a formerly obscure law professor, to serve as prime minister. Italian press reports indicated that any agreement to form a new populist government involving the League, formerly known as the Northern League, and M5S would include the nomination – again – of Giuseppe Conte, a formerly obscure law professor, to serve as prime minister.
But the two populists, Di Maio and Salvini, were expected to back down on their earlier insistence that the 81-year-old Eurosceptic Paolo Savona, who had called Italy’s adoption of the euro a “historic mistake”, serve as finance minister. But Di Maio and Salvini are expected to back down on their earlier insistence that Paolo Savona, a Eurosceptic who has called Italy’s adoption of the euro a “historic mistake”, should serve as finance minister.
There were also small indications that the populists would try to assure markets that they were not planning any big moves to try to hasten an Italian exit out of the euro, a fear that roiled markets this week. There were also small indications that the populists would try to assure the markets they were not planning any big moves to try to hasten an Italian exit from the euro – a fear that roiled markets this week.
In Milan, a roadside sign outside the headquarters of the League that had previously declared “Basta Euro!” – a call to leave the currency – was painted over overnight.In Milan, a roadside sign outside the headquarters of the League that had previously declared “Basta Euro!” – a call to leave the currency – was painted over overnight.
Sergio Mattarella, the Italian president, who would have to formally approve the new government’s leader and slate of ministers, signalled on Wednesday evening that he was ready to install a technocratic government if a deal could not be reached, but decided to give Di Maio and Salvini more time to draw up a list of ministers that could be accepted by all parties. Mattarella, who would have to formally approve the new government’s leader and slate of ministers, signalled on Wednesday evening that he was ready to install a technocratic government if a deal could not be reached, but decided to give Di Maio and Salvini more time to draw up a list of ministers that could be accepted by all parties.
The decision to “slow things down” – taken three months after an election that resulted in a hung parliament – was an attempt to try to head off a possible snap election, which would have to be held if the political impasse lasted much longer. The decision to “slow things down” – taken three months after an election that resulted in a hung parliament – was an attempt to try to head off a possible snap election, which would have to be held if the political impasse lasts much longer.
A bitter row between Mattarella and the two populists at the weekend had prompted the latter to step back – at least temporarily – from their plan to assume power.A bitter row between Mattarella and the two populists at the weekend had prompted the latter to step back – at least temporarily – from their plan to assume power.
On Sunday night Mattarella refused to endorse the nomination of Savona for the finance brief, saying his appointment would send a message to markets and investors that Italy was prepared to default on its obligations to Brussels and might even contemplate an exit from the eurozone. Mattarella said leaving the euro posed a risk to all Italians’ financial security.On Sunday night Mattarella refused to endorse the nomination of Savona for the finance brief, saying his appointment would send a message to markets and investors that Italy was prepared to default on its obligations to Brussels and might even contemplate an exit from the eurozone. Mattarella said leaving the euro posed a risk to all Italians’ financial security.
Mattarella’s decision set off a chain of events that caused turmoil on Italian markets: Conte resigned as prime minister-in-waiting and new elections appeared to be imminent, worrying markets and officials in Brussels. Their concern was that new elections could strengthen populist gains in Italy, leading to even greater uncertainty about the country’s future in the eurozone.Mattarella’s decision set off a chain of events that caused turmoil on Italian markets: Conte resigned as prime minister-in-waiting and new elections appeared to be imminent, worrying markets and officials in Brussels. Their concern was that new elections could strengthen populist gains in Italy, leading to even greater uncertainty about the country’s future in the eurozone.
Those fears were slightly allayed on Wednesday after Di Maio opened the door to new talks with Salvini and suggested he was open to reaching a compromise that could satisfy Mattarella’s objections.Those fears were slightly allayed on Wednesday after Di Maio opened the door to new talks with Salvini and suggested he was open to reaching a compromise that could satisfy Mattarella’s objections.
Di Maio said that if a deal could not be reached, he favoured snap elections. “There are two paths ahead. Either we launch the Conte government with a reasonable solution or we vote right away,” he said.Di Maio said that if a deal could not be reached, he favoured snap elections. “There are two paths ahead. Either we launch the Conte government with a reasonable solution or we vote right away,” he said.
Any government formed by M5S and the League would have a relatively narrow majority in the senate, limiting its ability to take any dramatic action.Any government formed by M5S and the League would have a relatively narrow majority in the senate, limiting its ability to take any dramatic action.
Even before the fracas over Savona’s appointment, the marriage of convenience between Di Maio and Salvini had looked tenuous since the 4 March election.Even before the fracas over Savona’s appointment, the marriage of convenience between Di Maio and Salvini had looked tenuous since the 4 March election.
The M5S and the League are Italy’s biggest populist parties but differ significantly on policy. An agreement reached this month for a shared agenda was focused on plans to increase spending, cut taxes and take a far tougher approach on immigration than the previous centre-left government, including by creating new detention centres across Italy.The M5S and the League are Italy’s biggest populist parties but differ significantly on policy. An agreement reached this month for a shared agenda was focused on plans to increase spending, cut taxes and take a far tougher approach on immigration than the previous centre-left government, including by creating new detention centres across Italy.
ItalyItaly
Five Star MovementFive Star Movement
The far rightThe far right
EuropeEurope
European UnionEuropean Union
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