Italy crisis worsens as PM-designate fails to form government

Giuseppe Conte abandons his mandate to form a new government after meeting with President Sergio Mattarella.

    Giuseppe Conte, Italy's prime minister-designate, has abandoned his mandate to form a new government, the presidential palace has said. 

    The announcement on Sunday came after a meeting between Conte and Italian President Sergio Mattarella to discuss a proposed list of cabinet members, in what would have been Italy's first populist government.

    Conte's attempt at forming a government broke down after Mattarella refused to endorse Paolo Savona, a vocal critic of the European Union, for the post of minister of economy. 

    Conte told reporters he "gave the maximum effort, attention, to carry out his task with the full collaboration" of Five Star Movement and League political parties. 

    The move could open the way for renewed elections. 

    Later on Sunday, the Italian president's office announced Mattarella had summoned Carlo Cottarelli for talks on Monday, signalling the former senior director at the International Monetary Fund might be asked to head a technocrat government.  

    Inconclusive elections

    Conte, a 53-year-old law professor, was given his mandate by Mattarella on Wednesday, 80 days after Italy held inconclusive elections. 

    He had been put forward by Luigi di Maio and Matteo Salvini, the leaders of would-be coalition partners Five Star Movement and League, who after months of political deadlock agreed on a government programme earlier this month. 

    Five Star and League: Winners and losers of Italy's new direction

    The populist Five Star Movement came out as the single largest party in Italy's March elections, capturing nearly a third of the vote. The far-right League was the biggest party in a right-wing coalition which as a bloc captured about 37 percent of seats in Italy's two houses of parliament.  

    Mattarella, who constitutionally must approve of cabinet picks, blocked Savona as incoming economy minister, citing concerns that Savona might have pushed Italy out of the eurozone and his appointment would have alarmed markets.

    "I have agreed and accepted all the nominations, except that of the minister of economy," Mattarella said in a televised speech on Sunday.

    "I asked for that ministry an authoritative political figure from the coalition parties who was not seen as the supporter of a line that could provoke Italy's exit from the euro," he added.

    On Friday, ratings agency Moody's had threatened to downgrade Italy's debt rating, citing a risk that the new government might fail to reduce its public debt.

    Shortly before Conte's bid broke down, League's Salvini said the would-be coalition partners should be able to name the ministers they wanted.

    "In a democracy, if we are still in a democracy, there's only one thing to do: let the Italians have their say," he said. 

    Di Maio, the Five Star Movement leader, called Mattarella's rejection of Savona "unacceptable". 

    "What's the point of going to vote if it's the ratings agencies that decide?" he said. 

    "I have been informed that the parties now want an immediate election. It is a decision I will make after we discuss it in parliament."

    Political limbo

    In his televised speech, Mattarella said he knew his stance would not be "popular".

    Italy's villages face economic crisis fuelled by austerity

    Commenting on the latest developments, Al Jazeera's Nadim Baba said the breakdown leaves Italy in "political limbo". 

    "Wen the results came out from the general election, a lot of people were saying this was a call by the electorate for a fresh wave of politicians," he said. 

    "This was seen as the chance for a break by somebody - that has failed." 

    Baba added that Italy might be primed for a long period of a caretaker government before fresh elections, as well as "more disillusionment by the Italian electorate and of course economic uncertainty". 

    SOURCE: Al Jazeera and news agencies


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