World Italy Coalition Risks Collapse, Threatening Battle Against Virus

12:35  13 january  2021
12:35  13 january  2021 Source:   bloomberg.com

Conte’s Options to Prevent Ally From Toppling Italy’s Government

  Conte’s Options to Prevent Ally From Toppling Italy’s Government A former Italian prime minister is threatening to topple the flimsy ruling coalition of the current premier, Giuseppe Conte. While tensions in the government are nothing new, the risk is that Matteo Renzi will follow through at the worst possible time. Italy is battling a resurgence of the coronavirus, faces a crushing recession and has taken over the presidency of the Group of 20. Renzi accuses Conte of grabbing too much power and hates his plans on how to spend an estimated 196 billion euros ($241 million) from the European Union recovery package.

(Bloomberg) -- A junior partner in Italy ’s ruling coalition is considering ditching the alliance as early as Tuesday, threatening to bring down Premier Giuseppe Conte’s government just as the country is battered by a resurgence of the coronavirus pandemic, according to officials.Former premier Matteo

Most analysts expect the ruling coalition to soldier on with a reshuffle - with or without the current prime minister.

(Bloomberg) -- The government of Italian Prime Minister Giuseppe Conte is at risk of collapsing as a junior ally prepared to abandon the coalition as early as Wednesday, just as the administration seeks to push through measures to battle the pandemic and boost the economy.

Ex-Premier Matteo Renzi, leader of the Italy Alive party, will hold a news conference at 5:30 p.m. in Rome after a decision on whether to pull his two ministers out of the coalition in a long-simmering clash with Conte. Renzi’s party has only 3% support in opinion polls but a pullout would still rob Conte of his parliamentary majority.

Renzi’s ministers are expected to resign from the government in a letter they will send at 5 p.m. Wednesday afternoon, daily la Repubblica reported.

Italy’s government falls into chaos, further complicating the covid response

  Italy’s government falls into chaos, further complicating the covid response Former prime minister Matteo Renzi pulls out of the rickety coalition, leading Prime Minister Giuseppe Conte to scramble for a new majority. A rickety truce in the country’s ruling coalition broke apart Wednesday when former prime minister Matteo Renzi withdrew his small party’s support for the government, plunging the country into political chaos. Analysts still think the likeliest scenario is that the current prime minister, Giuseppe Conte, will cobble together a new coalition majority and stay on the job.

Italy has the highest death toll from the virus , with more than 11,000 fatalities, and almost 102,000 confirmed cases, second only to the U.S. It reported the smallest number of new The risk is that organized crime gangs will step in to provide assistance to those in need, filling the gap left by the state.

Italy is at the epicenter of the COVID-19 outbreak in Europe. China has come to Italy 's aid, while some critics say Europe has lacked solidarity in fighting Former German Foreign Minister Sigmar Gabriel said in 2017 that China needs to respect the policy of "one Europe" and warned Beijing against

The timing could hardly be worse. Italy is battling a worsening coronavius pandemic and a recession, and has taken over the presidency of the Group of 20 nations. Cabinet meetings are due Wednesday evening and Thursday to approve new restrictions on movement and a plan to widen the country’s deficit by about 24 billion euros ($29 billion) to fund new stimulus.

Markets are watching. After sliding Tuesday, Italian bonds were trading steady at the start of the European session. Ten-year yields were at 0.65%, with the spread over their German peers at around 114 basis points, close to a one-week high.

chart, line chart: Italian bond yields have spiked higher on fears of Renzi departure © Bloomberg Italian bond yields have spiked higher on fears of Renzi departure

“We don’t want to be in government at all costs, if you want us to be in the government, listen to our ideas,” Renzi said in an interview with Rai state television Tuesday night.

Italy’s Government on Verge of Collapse After Renzi’s Party Quits

  Italy’s Government on Verge of Collapse After Renzi’s Party Quits Italy’s government led by Prime Minister Giuseppe Conte risks collapsing in the middle of the Covid-19 pandemic after a junior coalition partner pulled out. Former Premier Matteo Renzi said his Italy Alive party is quitting the coalition, attacking Conte for failing to do enough to tackle the country’s problems. Though the party is tiny, Conte relies on it to maintain his majority in parliament.Renzi’s decision sparks a government crisis which could last days or even weeks, and has no clear solution in sight.After accepting the ministers’ resignation, Conte could step down himself.

A collapse of the Italian government would likely see Salvini’s League emerge as the largest party in Italy , with the party having dominated the polls for Dirty George, as well as the Chinese, are posing like vultures, hoping for a collapse and waiting to pick through what is left and buy up anything of use.

ITALY ’S political crisis has struck European financial markets – but strategist Jeff Rosenberg said the market response to Italy ’s coalition The EU finance boss claimed the collapse of Italy ’s would-be government could “drastically” impact the Italian economy and teach voters not to support populists.

If the former premier makes good on his threat, Conte could seek a parliamentary vote of confidence. But if he fails to win over enough centrist and unaffiliated lawmakers, Conte’s government would become a caretaker administration with limited powers to make policy decisions. If he resigns, however, he could be given a mandate by President Sergio Mattarella to try to forge a new alliance.

Read More: Conte’s Options to Prevent Ally From Toppling Italy’s Government

Other possible scenarios following a Renzi pullout include a similar coalition with a different premier, a broad alliance headed by a figure like ex-European Central Bank president Mario Draghi, or early elections. Surveys show the center-right opposition would likely win a new ballot.

Renzi has taken Conte to task over his plan for spending Italy’s estimated 196 billion-euro share of the European Union’s recovery package. The plan was approved early on Wednesday during a night-time cabinet meeting, Conte’s office said in a statement.

The former premier has escalated pressure on Conte since late last year, slamming the prime minister’s plans for managing and spending EU funds. Renzi says the plan has been improved following his demands, but he’s insisting on further conditions, including that Italy tap a European Stability Mechanism credit line for health spending.

Renzi also wants Conte to share power with coalition parties, spend more on healthcare and give up control of the country’s secret services.

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Italy's Conte faces showdown with aggrieved coalition party .
Italy's Conte faces showdown with aggrieved coalition partyROME (Reuters) - Prime Minister Giuseppe Conte faced a cabinet showdown on Tuesday with a small coalition partner that could bring down his government and unleash political chaos on Italy as it struggles to contain the COVID-19 pandemic.

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