Italy's Conte To Be Given Mandate To Govern
Fahad Shabbir (@FahadShabbir) Published August 29, 2019 | 01:46 PM
Italian President Sergio Mattarella met with prime minister Giuseppe Conte on Thursday to give him a mandate to form a new government after a deal to stave off snap elections
Rome, (APP - UrduPoint / Pakistan Point News - 29th Aug, 2019 ) :Italian President Sergio Mattarella met with prime minister Giuseppe Conte on Thursday to give him a mandate to form a new government after a deal to stave off snap elections.
The anti-establishment Five Star Movement (M5S) and the centre-left Democratic Party (PD), once bitter foes, agreed Wednesday to govern in coalition following the collapse of Italy's populist government earlier this month.
Conte -- a soft-spoken former academic chosen as a compromise prime minister last year -- is expected to be given a few days for political consultations to ensure a working majority in parliament.
M5S chief Luigi Di Maio has said the deal with the PD will have to be approved by his party's members in an online vote, which could take place by this weekend.
The crisis was triggered on August 8 when popular far-right leader Matteo Salvini withdrew his League party from the governing coalition with M5S, calling for fresh elections he thought would make him premier.
Mattarella has been racing to find a solution to the political turmoil, with Italy -- grappling with a huge debt mountain -- under pressure to approve a budget in the coming months.
Without a new government at the reins it could face an automatic rise in value-added tax that would hit the poorest families the hardest and could plunge the country into recession.
"The agreement means we won't have an election in the autumn and any budget confrontation with Brussels later this year may be less fierce than last," said Craig Erlam, senior market analyst at OANDA.
"The two parties still very much have their differences and it's unlikely to be a harmonious relationship but it will likely be a better match than the last," he said.
Investors and markets have welcomed the likely return to political stability in the eurozone's third largest economy, with Italy's 10-year bond yield falling to a record low Wednesday.
But analysts have warned the deal between the M5S -- which had sworn never to ally with traditional parties -- and the centre-left, which has long loathed it, could quickly crumble.
"Any new government formed by these unlikely bedfellows has the potential to be a fairly short-lived affair, given that the onus will now fall on a new administration to implement new EU mandated spending reductions of up to 23 billion Euros this autumn," said Michael Hewson, chief market analyst at CMC Markets UK.
"These are not expected to be popular and likely to feed into the populist narrative of Matteo Salvini," he added.
Salvini said Wednesday his party was confident it would win eventual new elections next year, saying "we're in no hurry".
Related Topics
Recent Stories
Sindh home minister chairs law and order meeting
Bakht Kakar orders to ensure maximum facilities in livestock sector
NEPRA concludes hearing into FCA of DISCOs for March
Junta-led Burkina Faso suspends BBC, Voice of America for two weeks
Chairman COPHC lauds MoMA’s efforts at Gwadar Port, Free Zone
CM’s aide directs steps to prevent domestic violence against women
LESCO detects 74,621 power pilferers in 220 days
Regional Police officer (RPO) Shariq Kamal Siddiqui holds open court
LESCO collects over Rs 4.36m from 189 defaulters in 24 hours
Secretary health urges public to follow precautionary measures to avoid spreadin ..
PM directs formation of committee for consultation with provinces on carbon cred ..
UAF to ink MoU with Ethiopian universities
More Stories From World
-
Junta-led Burkina Faso suspends BBC, Voice of America for two weeks
19 minutes ago -
Romania court opens way for start of influencer Tate's trial
41 minutes ago -
Kenya flood death toll since March climbs to 70
41 minutes ago -
At least 10 people killed in Brazil fire: officials
41 minutes ago -
Russia targets Ukraine railways as Western aid due to arrive
1 hour ago -
Miner Anglo American rejects BHP's near $39-billion takeover bid
1 hour ago
-
At least 10 people killed in Brazil fire: officials
1 hour ago -
Junta-led Burkina Faso suspends BBC, Voice of America for two weeks
1 hour ago -
Saudi to host top Arab, EU diplomats for Gaza talks: officials
1 hour ago -
Kenya flood death toll since March climbs to 70: govt
1 hour ago -
US Fed's favored inflation measure accelerates in March
3 hours ago -
Kenya flood death toll since March climbs to 70: govt
3 hours ago