The Strategist

Italian President gives Conte mandate to form a new government

08/29/2019 - 11:39

Last week, Conte said that he would step down as Prime Minister after the far-right Lega Nord party left the coalition with the 5 Star Movement, triggering a political crisis.

European Parliament
European Parliament
On Wednesday, the Five Star Movement and the opposition Democratic Party told President that they were ready to try to form a government led by Conte.

The parties have yet to agree on a common political platform and the team of Ministers. However, the Five Star Movement leader Luigi Di Maio and the leader of the Democratic Party Nicola Zingaretti promised to find a common language for the good of the country.

According to a preliminary draft of the coalition platform, both sides will ask the EU for flexibility with respect to the budget deficit in 2020 to “strengthen social cohesion” in the country, the Italian business newspaper Il Sole 24 Ore reports.

Last month, Italy avoided the threat of disciplinary action from the EU. The European Commission said that at this stage the excessive deficit procedure (EDP) is no longer required, since Italy was expected to generally comply with the requirements of the EU Stability and Growth Pact this year.

The Commission called on Italy to comply with its obligations to prepare the budget for 2020 in accordance with the EU budgetary rules. Italy pledged to reduce structural deficits next year, as was done in 2019.

The prospect of a new government led by Conte was positively received by markets. By morning, the Italian FTSE MIB index rose by 1.76%.