Italy Increasingly Likely to Abandon the Euro
Italy Increasingly Likely to Abandon the Euro by Mike Shedlock
An analysis of the political setup in Italy shows eurosceptics are on the verge of taking control of the country.
The only missing ingredient is an early election. And early elections are now the odds-on favorite.
Let’s back up a bit to fill in the pieces as to how things got to this point.
- Former prime minister Matteo Renzi stepped down in December after holding a referendum that failed miserably. See Renzi Resigns Following Crushing Referendum Defeat: Beppe Grillo, Marine le Pen, Matteo Salvina Tweets
- Italy’s president, Sergio Mattarella, appointed Paolo Gentiloni as the new prime minister after Renzi resigned. See Meet Paolo Gentiloni, 4th Consecutive Italian Technocrat Appointed Prime Minister: Renzi Not Vanquished Yet
- The president said he would not hold new elections until differences between how the lower house of parliament assigned seats were resolved.
- Point number three has been resolved. Both houses of Parliament are back on a proportional system.
- New elections are possible now but the next scheduled elections are not until 2018.
- Matteo Renzi wants new elections in June. Even though he resigned, he wants back in. Renzi wants new elections this year because PD may oust him if he waits.
- Beppe Grillo wants elections as soon as possible because he believes he will win, and also because FI leader Silvio Berlusconi cannot run for prime minister until 2018 because of a tax fraud conviction.
- Berlusconi does not want early elections, but he is in the minority.
It is up to the president to call new elections, and there is pressure from at least two fronts for him to do so.
The situation for Renzi is actually way worse than it appears. Not only do polls tend to over-play support for PD, the party is about to splinter. Via email, Eurointelligence explains …