New political crisis on the other side of the Alps. Italian Prime Minister Mario Draghi resigned on Thursday July 21, the day after a crazy day in Parliament which saw his national unity coalition implode, causing concern in the markets and in Europe. If you haven’t followed everything, franceinfo recaps the events that led to this political earthquake.
In what context does this political crisis take place?
On July 14, the populist Mouvement 5 Etoiles (M5S), which belongs to the government coalition, decided not to vote a key text submitted to the Senate and experienced as a “vote of confidence” by the government. The party, itself deeply divided by a recent split and at half mast in the pollsconsiders that its priorities (introduction of a minimum wage and tax incentives for the energy renovation of homes) are not taken into account.
But, for most observers, it is rather a tactic of the M5S to win back his electorate. The leader of the movement, Giuseppe Conte, is betting that Mario Draghi will continue to govern without him, allowing his party to regain the favor of the electorate, in a posture of opponent in view of the elections scheduled for next May.
This scenario was ultimately shattered. Arrived at the head of the executive in February 2021 to get Italy out of the health and economic crisis, Mario Draghi, economist and former head of the European Central Bank (ECB), does not want to be drawn into political games. He believes that his government of national unity, ranging from the left to the extreme right, has been rendered obsolete by the gesture of the M5S. He therefore presented his resignation the same day to the President Sergio Mattarella… who refused it. Le center-left (which fears that early elections will favor the right), a thousand mayors as well as several European officials (who see in him the white knight of budgetary orthodoxy) have urged the Prime Minister to remain in office.
What happened on Wednesday?
mario Draghi finally said he was ready to continue his mission if his coalition manages to reunite to avoid early elections. “The only solution, if we still want to stay together, is to rebuild this pact from its foundations, with courage, altruism and credibility”he declared in front of the Senate. “This is what the Italians demand”he added, on the strength of polls claiming that two-thirds of his compatriots want “Super Mario” to remain at the helm.
The Prime Minister has same fact an opening sign in the direction of the M5S, ensuring that it was necessary “moving forward, with the social partners” towards the introduction of a legal minimum wage, dear to the 5 Stars. But he dismissed the idea of a government without them, as demanded Forza Italia, the right-wing party of Silvio Berlusconi, and the League, the far-right formation of Matteo Salvini.
His message of unity was not heard by his ad hoc allies. Forza Italia, the League and the M5S refused Wednesday to participate in a vote of confidence requested by the Prime Minister in the Senate. In question, officially: the M5S did not obtain satisfaction on its requests, and Forza Italia and the League refuse to stay in a government alongside the M5S, which has “broken the pact of trust” which sealed government unity after boycotting the July 14 vote. But, here again, observers believe that the parties have their eyes mainly riveted on the upcoming election campaign.
Even if he finally gets the trust on the wire, these mass desertions are a disavowal for Mario Draghi.
What are the consequences ?
Mario Draghi again submitted his resignation to the President of the Republic, Sergio Mattarella, on Thursday. “who took notice”. The government remains in place to “current business management”announced the Italian presidency in a press release.
Seen from France, the Secretary of State for Europe, Laurence Boone, estimated on France Inter on Wednesday that “Italy will enter a period which is perhaps a little less stable than what we have seen before”.
For their part, thes financial markets are scrutinizing the situation carefully. The Italian political crisis comes as the country is facing serious economic challenges,galloping inflation (8% over one year in June) to its dependence on Russian gas, highlighted by the war in Ukraine. Lhe Milan Stock Exchange was down on Wednesday, the FTSE MIB (the benchmark stock market index in Italy) losing 1.60% at the close.