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Italian Populists Launch Bid to Resurrect Government Coalition It Would Be an Olive Branch to President Sergio Mattarella

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Italian Populists Launch Bid to Resurrect Government Coalition It Would Be an Olive Branch to President Sergio Mattarella Friday 11 International Friday, June 1, 2018 Italian populists launch bid to resurrect government coalition It would be an olive branch to President Sergio Mattarella ROME: Italy’s populist parties launched a last- mist Carlo Cottarelli to form a caretaker gov- ditch bid yesterday to resurrect a coalition gov- ernment, but now says he is assessing Di Maio’s ernment that collapsed as the president vetoed offer of a compromise with “great interest”. The their controversial pick for economy minister. League has been beating the drum for new Luigi Di Maio, head of the anti-establishment elections, but its leader Matteo Salvini said Five Star Movement, said Wednesday he was Wednesday he had “never closed the door” on prepared to offer a compromise candidate in hammering out a government. Salvini, 45, and the place of economist Paolo Savona, who has the 31-year-old Di Maio were to meet later called for Italy to drop the euro. Thursday in Rome. It would be an olive branch to President Ser- Cottarelli meanwhile has a caretaker team gio Mattarella, who at the weekend ruled out ready to step in should the Five Star-League approving the coalition’s cabinet lineup if it in- negotiations fail-but the lineup is doomed to cluded Savona-prompting Di Maio to demand lose a confidence vote in the populist-domi- the president’s impeachment. Nearly three nated parliament, meaning that elections would months of political turmoil following an incon- likely be held after August. The timing of polls clusive election in the eurozone’s third biggest is already the subject of heated debate, with the economy have rattled financial markets, al- centre-left Democratic Party saying they should though they rebounded slightly on Wednesday be held in July while the League says they and Thursday. should take place after the summer holidays. But The Milan Stock Exchange was up 0.79 per- if they are held in September or October, par- cent by 1100 GMT after closing up 2.09 percent liament would have scant time to approve the Wednesday while the bond market continued to 2019 budget. strengthen. Investors have deep doubts over Italy’s financial stability, with the country strug- Banks on ratings watch ROME: A deputy casts his vote at the Chamber of Deputies in Rome on March 23, 2018, during gling under a debt mountain of 2.3 trillion euros. The uncertainty prompted Moody’s to place the first session after the March 4 vote. — AFP Popular support has soared for the nationalist a dozen Italian banks on negative ratings watch League party, Five Star’s more powerful coali- Wednesday, including Intesa Sanpaolo, Uni- tion partner, leading many to fear that fresh Credit and Mediobanca, having already Friday elections could essentially become a referen- placed Italy’s Baa2 rating on review for a possi- work RAI and gas companies Snam and Itaglas cent-are “worried” about the political situation, dum on euro membership. ble downgrade over its political crisis. Fuel giant were also put under surveillance by Moody’s. according to a survey conducted Tuesday and Mattarella has asked pro-austerity econo- Eni, postal service Poste Italiane, public TV net- More than half of ordinary Italians — 54 per- Wednesday by the Demopolis Institute.—AFP .
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