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Italy's president orders Cottarelli to form government

The Economist announces that if it does not get the support of Parliament, there will be elections after August

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Italy's president orders Cottarelli to form government

The institutional emergency in Italy is absolute. After formation of government between league and Movement 5 stars jump in air on Sunday afternoon because of its insistence on placing head of economy to Professor Paolo Savona, a convinced Eurosceptic, are sought solutions of urgency. The President of Republic, Sergio Mattarella, has commissioned The economist Carlo Cottarelli, an expert in cutting public spending with experience in various Italian governments, to try to mount a technical executive to keep accounts safe until Next fall elections.

More information
  • This is procedure for forming a government in Italy
  • The President of Italy summons Professor Conte to form government
  • The EU is concerned about instability in Italy and contagion to periphery

Cottarelli has confirmed assignment at end of meeting. Mattarella has asked him to come to Parliament to get support to take country to an election. "In case of support, process will include budget law of 2019. If we do not have confidence, government would resign and its role will be to take country to elections after month of August. The government will maintain a neutrality, " possible new prime Minister explained.

In addition, Cottarelli has wanted to launch a message of tranquility to markets and European Union. "The Italian economy is encuntra in full growth and public accounts are under control. A government guided by me would ensure prudent management of our public accounts. A dialogue with Europe is essential. We can do better than in past, but it must be constructive. Our role in Union remains essential, as is our participation in euro area. "

The new prime Minister will not have necessary support in Parliament. Without league and movement 5 stars, which have absolute majority, is impossible. But in addition, Forza Italia has already announced that it will not give its support to preserve unity of Coalition of Centre, which will return to be joined to upcoming elections. The only party that has been openly in favor of appointment of Cottarelli — first initiative that has brought m toger in months — has been PD. But numbers do not go out and Mattarella seems more focused on gaining time and having country's front to someone of confidence until following elections than in a real hyposis of government.

Markets have taken note of political turbulence. The risk premium has gone back up to 234 points and bag has returned to red numbers. The hemorrhage remains far from under control. But league and M5S see operation as a coup d'état organized by markets and have announced that y will study possibility of causing a kind of impeachment to Mattarella for Descabalarlo of presidency of Italy.

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