ROME: Italy’s president asked Giuseppe Conte to head a coalition of the 5-Star Movement and opposition Democratic Party (PD) on Thursday, a move could that could mark a turning point in Italy’s frayed relations with the European Union.
Sergio Mattarella handed Conte a fresh mandate to form a cabinet barely a week after the low-key lawyer had resigned following a decision by the far-right League party to pull out of its coalition with 5-Star.
The move by its leader Matteo Salvini, who had wanted early elections to capitalise on his party’s success in European elections, appeared to have backfired as 5-Star and the PD set aside their mutual antipathy to form a government.
“In the coming days I will return to the president of the republic ... and submit my proposals for ministers,” Conte told reporters at the presidential palace.
“We must immediately get to work and draw up a budget to avert the VAT hike, protects savers and offers solid prospects for economic growth and social development,” he said. VAT will rise from January 1 unless the government can find 23 billion euros ($26 billion) elsewhere.
Markets have been buoyed by the prospects of a quick end to a three week political crisis. Italy’s 10-year borrowing costs fell to an all-time low at auction on Thursday as investors hailed news that early elections have been avoided.
However, the incoming coalition still needs to agree a shared policy platform and team of ministers. In a further complication, 5-Star has said it will put any deal with the PD to an online vote of its members. Many 5-Star supporters oppose a pact with the centre-left and a ‘yes’ vote is not a certainty.
Conte, an academic with no political affiliation but considered close to 5-Star, said that work on the 2020 budget was his priority.
In an early, basic draft of a coalition policy platform, the two sides would ask the EU for flexibility on the 2020 budget deficit to “reinforce social cohesion” in the country, financial daily Il Sole 24 Ore said on Thursday. — Reuters
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