fxs_header_sponsor_anchor

News

Italy's attempt to form government fails as President sides with the Euro - Reuters

As reported by Reuters, Italy's attempt to form a government following recent elections has floundered after the Italian President, Sergio Mattarella, rejected a eurosceptic candidate for the position of Economy Minister, triggering a constitutional challenge as the coalition government decries the move.

The recent government election saw a coalition form between the far-right League and anti-establishment 5-Star Movement parties, and the leader of 5-Star is now calling for the President's impeachment following his rejection of anti-Euro Paolo Savona for Economy Minister by the newly-formed coalition.

Financial markets tumbled last week on fears the mooted coalition would unleash a spending splurge and increase Italy’s already huge debt mountain, which is equivalent to more than 1.3 times the nation’s domestic output. Looking to allay investor concerns, Mattarella vetoed on Sunday the choice of 81-year-old economist Paolo Savona, a vocal critic of the single currency, to the pivotal economy post. Prime Minister-designate Giuseppe Conte promptly abandoned his efforts to form a government. In a somber, televised speech, Mattarella said he had accepted all the suggested ministers bar Savona. “I asked for that ministry an authoritative political figure from the coalition parties who was not seen as the supporter of a line that could provoke Italy’s exit from the euro,” he said.

 - Reuters

Concerns are now rising that the defunct government will push for a fresh round of elections, and the possibility of an un-elected technocratic government could see support swell for the anti-establishment coalition that barely missed a popular vote when counted together.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.