Italy’s political crisis: why fresh elections loom

Analysts predict a snap vote later this
year could serve as an unofficial referendum on EU membership

In Depth

Prime minister-in-waiting Giuseppe Conte resigned on Sunday
after President Sergio Mattarella vetoed the appointment of a
eurosceptic cabinet minister, dashing an attempt to form a ruling
coalition by two populist parties.

 “Italy is no stranger to chaotic politics, government
crises and revolving-door executives,” the Associated Press reports. “But recent
developments were remarkable even by Italian standards.”

What triggered the crisis?

Italy has been without a government since the general election
in March ended in a hung parliament, with the Five Star party
gaining the highest vote share but missing out on a majority.

The eurosceptic, anti-establishment and anti-immigrant party was
seeking to establish a coalition with the far-right Lega (formerly
the Northern League).

But Matterella’s decision to block Paolo Savona, an outspoken
critic of the EU,  from becoming finance minister led to
Conte’s resignation and deepened the country’s political crisis
yesterday.

The President has appointed ex-IMF economist Carlo Cottarelli as
caretaker prime minister, angering both populist parties.

“Cottarelli will ask for a vote of confidence to govern long
enough to approve a budget and push new elections to early 2019,”
says Quartz. “If he doesn’t receive enough support,
which is likely, new elections will be called after the
summer.”

What happens next?

The Five Star party and the Lega have the power to block
Cottarelli’s appointment and force a snap vote – and have promised
to do so.

They have also accused the President of subverting Italian
democracy and called for his impeachment.

“Why don’t we just say that in this country it’s pointless that
we vote, as the ratings agencies, financial lobbies decide the
governments?” said Five Star leader Luigi Di Maio.

The BBC says early elections are “exactly what the two
populist parties want, giving them a chance to rally support behind
their claim that the Italian and the wider European establishments
are getting in the way of the will of the people.”

Analysts also predict that the vote may serve as an unofficial
referendum on Italy’s future membership of the EU.

“The election is going to resemble a referendum, de facto, on
the European Union and the euro,” Francesco Galietti, head of
political risk consultancy Policy Sonar in Rome, told Reuters. “It’s an existential threat for the
entire euro zone.”