This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/world/2018/may/27/italys-pm-designate-giuseppe-conte-fails-to-form-populist-government

The article has changed 14 times. There is an RSS feed of changes available.

Version 2 Version 3
Giuseppe Conte fails to form populist government in Italy Giuseppe Conte fails to form populist government in Italy
(about 1 hour later)
Italy has been plunged into fresh political turmoil after prime minister-designate Giuseppe Conte formally rejected a mandate to form a new populist government. A standoff over Italy’s future in the eurozone ended on Sunday night with the shock resignation of the country’s populist prime minister-in waiting, Giuseppe Conte, after Italy’s president refused to accept Conte’s controversial choice for finance minister.
Conte, an academic and lawyer with no political experience, said he had given “the maximum effort and attention” to accomplishing his task, but had been unable to do so despite the “full collaboration” of the coalition partners, the anti-establishment Five Star Movement (M5S) and far-right League. Sergio Mattarella, the Italian president who was installed by a previous pro-EU government, refused to accept the nomination for finance minister of Paolo Savona, an 81-year-old former industry minister who has called Italy’s entry into the euro a “historic mistake”.
He took his decision on Sunday evening after presenting his choice of the cabinet ministers to President Sergio Mattarella, who vetoed the controversial proposal to hand the economy ministry to Paolo Savona, an 81-year-old former industry minister who opposed the signing of the Maastricht treaty and describes the euro as a “German cage”. The decision is expected to lead to new elections in the autumn, just months after a vote on 4 March ended in a hung parliament.
Mattarella, who is staunchly pro-European, said he had refused to approve the populist leaders’ choice because the appointment would have “alarmed markets and investors, Italians and foreigners”. The president’s move to quash Savona’s nomination was unprecedented in recent Italian history and exposed a deep political divide between Mattarella, who serves as the head of state and is suppose to be politically neutral, and the two populist parties – the Five Star Movement (M5S) and the far-right League – who have struggled desperately to form a government and support a more antagonistic relationship with Brussels.
In a televised address, a sombre Mattarella said he was not to blame for the impasse, adding that he had proposed alternatives for the key economy ministry position, but his suggestions had been spurned by M5S and the League. Mattarella defended his decision by saying that naming Savona as finance minister – which he already said he opposed – posed a risk for Italian families and citizens, because it created uncertainty in the Italian economy.
Most observers think the president is likely to now appoint a technocrat as prime minister to guide the country to fresh elections, following the inconclusive polls on 4 March when M5S was returned as the largest party. “I asked for that ministry an authoritative political figure from the coalition parties who was not seen as the supporter of a line that could provoke Italy’s exit from the Euro,” Mattarella said.
“The uncertainty over our position within the euro has alarmed Italian and foreign investors who have invested in securities and companies,” he said.
The president said the increase in the bond spread last week – a sign of growing unease and lack of confidence in Italy – would reduce the opportunity for social spending, and posed risks to Italians.
It was an extraordinary indication that Mattarella believes that preserving Italy’s place in the eurozone is fundamental to the country’s financial security and future. Both parties have in the past suggested they would support an exit from the euro, but moderated their views during their election campaign earlier this year.
Mattarella said he would evaluate a call by the leaders of the M5S and the League for snap elections. He summoned a former official at the International Monetary Fund, Carlo Cottarelli, to the presidential palace on Monday, which was interpreted as a sign that Cottarelli would be asked to form a government of unelected technocrats.
Mattarella’s move could risk a constitutional crisis.
Matteo Salvini, the bombastic head of the far-right League, angrily denounced the decision to block Savona, his personal choice for finance minister, saying that Mattarella had overstepped his authority and was revealing bias against a qualified individual – who once worked at the Bank of Italy – simply because he is anti-euro.
“In a democracy, if we are still in a democracy, there’s only one thing to do, let the Italians have their say,” Salvini said.
Luigi Di Maio, who heads the M5S, also criticised the decision.
“In this country, you can be a condemned criminal, a tax fraud convict, under investigation for corruption and be a minister … but if you criticise Europe, you cannot be an economy minister,” he said.
Mattarella’s move to reject Savona prompted Conte, a political newcomer who was given the mandate to form a government on Thursday, to step down from his prime minister post, before he had even formally started the job.
Conte, an academic and lawyer with no political experience, said he had given “the maximum effort and attention” to accomplishing his task, but had been unable to do so despite the “full collaboration” of the coalition partners.
Conte received the mandate last week to try to form a viable government from the rival populist forces, who disagree on so much that they have proposed equipping their government with a “conciliation committee” to settle its internal differences.Conte received the mandate last week to try to form a viable government from the rival populist forces, who disagree on so much that they have proposed equipping their government with a “conciliation committee” to settle its internal differences.
Matteo Salvini, the League leader, and M5S’s Luigi Di Maio vented their fury at Mattarella’s decision. “We have a problem with democracy; ours is not a free democracy,” Di Maio said. “I have been a great admirer of Mattarella but this [an] incomprehensible choice. The developments on Sunday night put Italy on an uncertain path. Some analysts have believed that any move by Mattarella to push against the populist parties would only serve to agitate their supporters, and fuel anti-euro sentiment in Italy. They have argued that new elections could create an even bigger majority for the M5S and the League.
“In this country, you can be a condemned criminal, a tax fraud convict, under investigation for corruption and be a minister … but if you criticise Europe, you cannot be an economy minister.” Before Conte or Mattarella had even finished their meeting, Salvini said the only option was to hold another election, probably later this year.
Salvini said the coalition partners had nominated a candidate who “is esteemed around the world … he worked with Bank of Italy. His only fault was to say that Europe, as it is now, doesn’t work. I was ready to go to my office at the interior ministry tomorrow morning to start making this country more secure ... but somebody said ‘no’.”
Before Conte or Mattarella had even finished their meeting, Salvini said the only option was to hold another election, probably later this year. “In a democracy, if we are still in democracy, there’s only one thing to do, let the Italians have their say,” Salvini said in a fiery speech to supporters in central Italy.
Europe has made little secret of its concern at the planned new government’s Eurosceptic intentions. The loudest alarm bells are ringing over the parties’ stated ambition to rewrite the EU’s rules and domestic policies which combine rises in public spending promised by M5S with tax cuts favoured by the League.Europe has made little secret of its concern at the planned new government’s Eurosceptic intentions. The loudest alarm bells are ringing over the parties’ stated ambition to rewrite the EU’s rules and domestic policies which combine rises in public spending promised by M5S with tax cuts favoured by the League.
As the European commission unveiled its economic advice to member states last week, the body’s finance commissioner, Pierre Moscovici, said he was hoping for “cooperation on the basis of dialogue, respect and mutual trust”.As the European commission unveiled its economic advice to member states last week, the body’s finance commissioner, Pierre Moscovici, said he was hoping for “cooperation on the basis of dialogue, respect and mutual trust”.
The trade commissioner, Cecilia Malmstöm, said “there are some things there that are worrying” about Italy’s incoming government.The trade commissioner, Cecilia Malmstöm, said “there are some things there that are worrying” about Italy’s incoming government.
Economists calculate the cost of the coalition’s promises – lower taxes, higher benefits, earlier retirement – could reach €170bn (£150bn), about 10% of Italy’s GDP. This would add to the country’s €2.1tn debt mountain and potentially trigger the EU’s worst-case scenario: a Greek-style debt crisis in the eurozone’s third-biggest economy.Economists calculate the cost of the coalition’s promises – lower taxes, higher benefits, earlier retirement – could reach €170bn (£150bn), about 10% of Italy’s GDP. This would add to the country’s €2.1tn debt mountain and potentially trigger the EU’s worst-case scenario: a Greek-style debt crisis in the eurozone’s third-biggest economy.
The coalition also envisages an 18-month limit for the asylum process, the detention of irregular migrants, and the repatriation of half a million people to their countries of origin – most of it in violation of EU law.The coalition also envisages an 18-month limit for the asylum process, the detention of irregular migrants, and the repatriation of half a million people to their countries of origin – most of it in violation of EU law.
It is also opposed to sanctions against Russia, which it describes as a possible partner rather than as an enemy of Europe.It is also opposed to sanctions against Russia, which it describes as a possible partner rather than as an enemy of Europe.
ItalyItaly
Five Star MovementFive Star Movement
EuropeEurope
newsnews
Share on FacebookShare on Facebook
Share on TwitterShare on Twitter
Share via EmailShare via Email
Share on LinkedInShare on LinkedIn
Share on PinterestShare on Pinterest
Share on Google+Share on Google+
Share on WhatsAppShare on WhatsApp
Share on MessengerShare on Messenger
Reuse this contentReuse this content