EU COVID-19 rescue funds spending set the ground for Conte’s resignation
Even though the country is close to being temporary without a Prime Minister, Italy40 is trading 0.71% higher.
According to the cabinet office's statement, the current Italian Prime Minister Giuseppe Conte is due to hand in his resignation to President Sergio Mattarella. His decision followed criticism from former PM Matteo Renzi on how the government spent more than €200 billion from the €750 billion EU rescue fund to cope with the pandemic's effects on the economy. Moreover, Conte was accused of mismanaging the COVID-19 situation, which killed more than 85,000 people in Italy.
The handing in resignation could go two ways for Giuseppe Conte. On the one hand, the President will approve his request, and call early elections – the latest ones took place in March 2018.
On the other hand, if the President refuses the resignation, the PM will be asked to form a new stable coalition, which, according to the Italian media, is what Conte hopes, having in mind an alliance with Silvio Berlusconi's centre-right bloc. He is also trying to avoid elections during such difficult times for the country, which experiences the worst economic downfalls in decades.
A decision will be made today. Until then, keep an eye on the markets!
Sources: thelocal.it, euronews.com