Lega Party Calls on Italian President to Elect New Parliament

28 May, 2018, 13:06 | Author: Diane Mills
  • European Union - Italy's Conte fights to form team as ally threatens new vote

Mattarella spoke to reporters Sunday night after Premier-Designate Giuseppe Conte announced that he didn't succeed in forming what would have been Western Europe's first populist government.

Italian bonds surged the most since September and stocks rallied after President Sergio Mattarella vetoed populist leaders' choice of a euro-skeptic candidate for finance minister, fueling investor optimism that there are checks and balances in place that are working.

The leader of Italy's far-right League Matteo Salvini on Monday dismissed talk about a possible impeachment of the country's president and said he wanted to change the electoral law with the 5-Star Movement.

Four days earlier, Conte, a little-known academic, had been granted the opportunity by Mattarella to draw up a list of ministers and attempt to form a government.

Di Maio said President Sergio Mattarella had caused an "institutional crisis". "But someone (under pressure from whom?) said no to us", Salvini wrote in a Facebook post.

Mattarella was expected to ask the former International Monetary Fund official to assemble and lead a government of "technocrats" until early elections.

If the vote is in favour, the country's constitutional court then decides whether to impeach or not.

While it appeared that Mattarella would have no choice but to confirm the elected government, in the end he decided against it, underscoring his opposition to the coalition's choice of economy minister and his fears that the new government would end by pulling the country out of the Europe Union's common currency, the euro. After an emergency meeting with his party leaders, he called on Italian television for Mr. Mattarella's impeachment for blocking the will of the people.

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Mattarella has not spoken publicly about Savona, but through his aides he has made it clear he does not want an anti-euro economy minister and that he would not accept the "diktat" of the parties.

He has as much to gain from a new election as the League, which has seen its popularity only rise in the weeks since the March 4 election resulted in a hung parliament.

The London FTSE stock exchange was closed for a bank holiday.

High-grade euro zone government bond yields rose partly on the news from Italy, but also due to the renewed possibility of improved relations between United States and North Korea.

In Sunday's statement Savona did not refer to his opinions on the euro, but more than 70 slides outlining a "plan B" for Italy's exit from the euro, co-authored by Savona in 2015 with a dozen others, circulated on social media.

"The main risk is that the stand-off will further embolden the 5-Star Movement, and, especially, the League".

While a technocratic government would likely be approved by the centre-left Democratic Party and Forza Italia -the party run by former prime minister Silvio Berlusconi - those two parties alone don't have enough votes.

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