Italian Prime Minister Giuseppe Conte is seen after addressing senators.
Andreas Solaro | Agence France-Presse | Getty Images
London – Italy avoided further Political chaos On Tuesday, after Prime Minister Giuseppe Conte escaped the confidence vote in the upper house of parliament.
The country has been mired in new political uncertainty over the past week after a smaller party withdrew its support for the coalition government – thereby denying it a majority in parliament.
However, Italian lawmakers in the Senate supported Conte during Tuesday’s vote, by 156-140, which allowed him to remain in office. The lower house of parliament also supported him in a vote on Monday evening. Conte will now lead a minority administration in A country prone to political disputes.
Italia Viva, the small political party founded by former prime minister Matteo Renzi, left the alliance last week due to disagreements over how to invest EU money coming to support the Italian economy.
Renzi was blamed for acting in his political interest by seeking to bolster public opinion for his newly established group. His party abstained from the decisive vote on Tuesday evening, instead choosing to confront Conte and help bring down the government.
One of the main challenges facing the minority government now, apart from the raging Coronavirus pandemic, is to save the Italian economy, as its gross domestic product (GDP) is expected to decline by 10% in 2020.
The coalition formed by the Five Star Movement and the Democratic Party, the two pro-European Union parties, must present a recovery plan to Brussels by mid-February for approval.
“The financial imbalances are in danger of deepening,” Paolo Gentiloni, the European commissioner for economic affairs who will be assessing the recovery plans, said Monday evening.
The eurozone worked to reduce public deficits and borrowing levels before the pandemic, and there are concerns that financial conditions will be much worse after the pandemic, if the upcoming stimulus is not well invested.
This is not the first time that Conte has escaped internal divisions within his government. A former law professor with no political affiliation was the compromise candidate appointed as Prime Minister in June 2018, when the Five Star Movement and the anti-immigration Lega Party formed a coalition.
However, in the summer of 2019, Liga urged a vote of no confidence in the coalition government, but ended up seeing the Democratic Party replace her in the administration, and what would later become FIFA Italy.
For a little over a year now, Conte is still in power but with his third formation of government.
The bond market showed some concerns over the past week as the latest political row sent Italy yields A little higher.
However, the market reaction has been contained to some extent due to the broader European context European Central Bank It continues to buy large amounts of government debt and the European Commission will soon distribute new funds.