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The President of Italy orders government to form a former director of the IMF

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

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The President of Italy orders government to form a former director of the IMF

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 in front of Ministry for economy to Professor Paolo Savona, a convinced Eurosceptic, one seeks Emergency solutions. 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
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  • The EU is concerned about instability in Italy and contagion to periphery

Cottarelli has confirmed assignment at end of meeting. The president has asked him to come to parliament this week to get support that will allow him to take country to an election. But re are two possible temporary scenarios, where mission would vary considerably. "In case of support, process will include Budget Act of 2019 and would be voted in January. 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, restless after events of last few weeks. "The Italian economy is growing 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 EU remains essential, as is our participation in euro area. " Tranquility for some, gasoline for populist machinery, which may present you as man with whom establishment consumed its coup d'état in next election campaign.

Because new prime Minister will not have necessary support in Parliament. Without league and 5 Star Movement, which have absolute majority in both chambers, it is impossible. But, moreover, Silvio Berlusconi's Forza Italia has already announced that he will not give him his support to preserve unity of Centre coalition, which will return to next election. The only party that has been openly in favor of appointment of Cottarelli — first initiative that has brought m toger in months — has been Democratic Party (PD). But numbers do not go out and Mattarella seems more focused on winning time and having country's front to someone trustworthy until next election, which 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 continue ir campaign of harassment and demolition against Mattarella and have announced that y will study possibility of causing a kind of impeachment for Descabalarlo of presidency of Italy.


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