Italian Prime Minister Conte Resigns, Triggering Search for New Government to Tackle Covid-19, Recession
26 January 2021 - 11:22PM
Dow Jones News
By Giovanni Legorano
ROME -- Italian Prime Minister Giuseppe Conte resigned Tuesday,
ushering in a phase of political instability that could lead either
a new government or to elections this spring.
The breakdown of Italy's left-leaning government comes as the
country, like most of the Western world, is struggling to control
the spread of the Covid-19 pandemic, vaccinate its population and
rekindle economic growth.
The Italian leader's fall also shows that Europe's political
challenges of recent years -- including the fragmentation of the
political landscape and the rise of antiestablishment parties --
haven't gone away, despite the pressure that the pandemic is
putting on European politicians to work together across party
lines.
Mr. Conte stepped down after losing his majority in Italy's
Senate earlier this month, following a fight with a small coalition
ally over how to spend massive funds offered by the European Union
to help Italy's economy recover from the impact of the
pandemic.
Italy's head of state, President Sergio Mattarella, will start
political consultations with parties in Parliament to test whether
a new governing majority can be found. Possible scenarios include a
government under a new prime minister, or another coalition led by
Mr. Conte.
If Mr. Mattarella concludes that no stable majority can be
assembled, he will dissolve Parliament and call elections.
The government broke down after a small centrist party led by
former Prime Minister Matteo Renzi pulled out of the coalition,
citing disagreement on how Mr. Conte wanted to spend the more than
200 billion euros, equivalent to $243 billion, in EU recovery funds
earmarked for Italy.
Mr. Conte and his main coalition members, the center-left
Democratic Party and the populist 5 Star Movement, tried to find
new supporters in the Senate, the upper house of Italy's
Parliament, to replace Mr. Renzi's party, but the search bore
little fruit.
However, if a new group of centrist senators willing to support
Mr. Conte emerges in the coming days, Mr. Mattarella could appoint
him prime minister again. Many political analysts consider this the
most likely outcome. It would be the third coalition government led
by Mr. Conte since 2018, when the little-known law professor first
entered national politics.
"The default solution would be another Conte government, with
broader support and significant signs of discontinuity with the
past," said Lorenzo Codogno, a London-based consultant and former
economist at Italy's Treasury.
Alternatively, a majority in Parliament might emerge to support
a government under a new premier. Mr. Renzi's party, Italia Viva,
has shown more willingness to back a government that isn't led by
Mr. Conte.
A new premier could come from the Democratic Party or the 5 Star
Movement, or he might be a politically independent figure with
technocratic expertise.
Parts of Italy's right-leaning opposition have called for early
elections, but the parties behind the departing left-leaning
government want to avoid that if possible. Opinion polls point to
victory for the right.
Opponents of snap elections say they would pose public-health
challenges amid the pandemic, and would also delay Italy's efforts
to come up with a plan for reviving its battered economy using EU
funds.
(END) Dow Jones Newswires
January 26, 2021 07:07 ET (12:07 GMT)
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