Italy: Government crisis now formally opened – ING

Dhwani Mehta FXStreet

The Italian “Prime Minister Conte’s resignation opens a new phase, where the master of the game will be President Mattarella,” Paolo Pizzoli, Senior Economist at ING Bank noted.

Key quotes

“President Mattarella accepted his resignation, and asked him to stay for current affairs, as it normally happens.’

“We see three main options ahead. The first option which might be explored is that of a new mandate for a Conte 3.0 government.”

“We suspect that this solution would aim at coopting a new group of “willing” MPs form the ranks of pro-European moderates in the opposition under a common flag to expand the majority, but could hardly do without the support of Renzi’s Italia Viva.“

“A success in this sense would imply the end of cross-vetoing between former coalition partners, under the influence of President Mattarella’s moral suasion, reinforced at this stage by the presidency’s constitutional role in government crises.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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