Italian News Update: The Prime Minister Has a Presidential Mandate to Form a Government

The President of Italy gave a mandate yesterday to the outgoing Prime Minister of the ruling anti-establishment populist party to explore the formation of a new coalition government with the main center-left party, after reaching a deal with them for the premier to head an executive.  The premier will return to the President in a few days with a list of ministers and then seek the required vote of confidence from the Parliament.

The government crisis was caused by the resignation of the Prime Minister, after the announcement by the Trumpist anti-migrant pro-Putin far-right League party, with which the premier’s party was in a coalition government, that it would offer a vote of no confidence in him.

A new government would end the crisis that leads to uncertainty and causes investors to lose confidence in Italian government bonds.  It would avoid a sales tax increase and allow the passage of a budget.  The accord reached between the parties, which are the two with the most parliamentary seats, would increase spending for welfare, infrastructure and for the poorer South, emphasize environmental protection, crack down on tax evasion and complete an anti-corruption platform.  The accord would end the far-right party’s harsh anti-migrant policy, such as blocking ports to the rescue ships of non-government organizations.

The League had tried to capitalize on polls suggesting it had a large plurality of support by bringing down the Government to force either a cabinet reshuffle with a greater share of the ministers of the executive, or new elections, in which it could possibly have gained a majority of seats in the Parliament with an alliance with the center right parties.  Instead, the far right party, which has marginalized the free-market center-right, will be out of power while Italy moves leftward and the center-right will remain in opposition.