Mario Draghi Intends to Submit His Resignation Again
Italian Prime Minister Mario Draghi is expected to resign Thursday for the second time within a week, after three parties in the ruling coalition announced that they would not participate in the confidence vote in his government.
This renewed political deadlock comes after the failure of negotiations aimed at finding common ground between the government’s sectors. Meanwhile, Fitch Ratings Agency considers that the situation reflects “major political uncertainty even if the country is spared early elections”, which makes it more difficult to implement structural and financial reforms.
After the failure of negotiations aimed at finding common ground between all parties, three parties affiliated with the Italian Prime Minister’s coalition announced Mario Draghi Wednesday it will not participate in the vote of confidence for his government. While Italian media indicated that Draghi is expected to submit his resignation Thursday to the President of the Republic Sergio Mattarella.
Forza Italia (centre-right), the League (hard-left) and the populist Five Star Movement told the Senate that they did not intend to vote, which means stifling Draghi’s efforts to resolve a political crisis that will lead to his resignation and early elections.
Draghi had assumed the presidency of a “national unity” government in early 2021, whose mission was to address the pandemic and the economic crisis that resulted from it. However, on July 14, he submitted his resignation to Mattarella, who was quick to reject it.
Draghi considered that the national unity government that he leads and includes spectrums ranging from the left to the extreme right, is no longer legitimate after boycotting the Five Star Movement, which is witnessing differences in its ranks and a deterioration in its popularity, on the same day, a vote of confidence in the Senate.
In his address to the Senate, Draghi stressed that “the only solution, if we still want to stay together, lies in rebuilding this pact from its foundations, with courage, dedication and credibility,” adding, “This is what the Italians demand.”
Whatever the outcome, Fitch Ratings considers that the situation reflects “major political uncertainty even if the country is averted early elections”, which makes it more difficult to implement structural and financial reforms.
Markets are closely watching the situation. The cost of Italy’s debt rose again and the Milan stock exchange fell on Wednesday, in evidence of market tension over uncertainty in the euro zone’s third-largest economy.
Economic challenges
Draghi is a former governor of the European Central Bank, and polls show that two-thirds of Italians wish “Super Mario” to remain at the head of the government.
Draghi stressed that “Italy is strong in its unity,” adding that the domestic challenges of economic recovery, fighting inflation and creating jobs, and the external challenges of achieving energy independence and the war in Ukraine, which Italy and the European Union are facing, “require a government that is really strong and solidarity and a parliament that accompanies it with conviction.” .
The 74-year-old banker, who has never held any political position, seemed firm with the political parties, saying, “Italy does not need a sham trust that disappears in the face of difficult measures to be taken.”
The European Commissioner for the Italian Economy, Paolo Gentiloni, considered that the parties that defected “are not responsible.” For his part, Foreign Minister Luigi Di Maio considered it “a black page in Italy.”
“Italians will appear at the polls to be wiser than their representatives,” said Democratic Party leader Enrico Letta, referring to early elections that could lead to Draghi’s resignation. In the end, only the center and the left remained on the side of the former president of the European Central Bank.
