(Bloomberg) -- Italy may finally discover the identity of its next prime minister on Monday.
The two populist leaders who sealed a pact to form a new government are due to brief President Sergio Mattarella. The head of state is likely to press them on their plans to slash taxes and boost spending on the poor, as well as demands for reform of the European Union.
But most of all, he’s going to want to know who’ll be charged with leading the administration.
Luigi Di Maio, the head of Five Star, and Matteo Salvini of the League both said Sunday they’d agreed on a candidate. The Corriere della Sera newspaper reported that it’ll be Giuseppe Conte, a 54-year-old law professor at Florence University. Conte himself posted a picture of John F. Kennedy on his WhatsApp profile over the weekend with the line, “Every accomplishment starts with a decision to try.”
Eleven weeks after Italy’s inconclusive general election, the rapprochement between anti-establishment Five Star and the anti-immigrant League triggered a week of turmoil in Italian bonds and stocks. The 10-year yield spread over German bunds ended Friday at the widest since October, prompting a word of caution from Paris.
Tax Cuts, Spending
“If the new government takes the risk of not respecting its commitments on debt, the deficit and the cleanup of banks, the financial stability of the entire euro zone will be threatened,” French Finance Minister Bruno Le Maire said Sunday in an interview with Europe 1 radio.
France is the first EU government -- and another of the bloc’s six founder members -- to voice concern at the coalition’s 58-page “Contract for a Government of Change.”
The plan includes lowering the retirement age, a “citizen’s income” for the poor and jobless, and main tax rates of either 15 percent or 20 percent for companies and individuals. It also calls for a review of EU treaties and European “bail-in” rules for the banking industry, saying savers should get more protection. Supporters of both parties have endorsed the program since it was released on Friday morning, with more than 90 percent voting in favor in ad hoc ballots.
“In Europe there are rules that must be respected,” Le Maire said. “I respect the sovereign decision of the Italian people, but there are commitments that are bigger than any one of us.”
Mattarella, the 76-year-old head of state and a former constitutional court judge, is determined to use his constitutional prerogatives to ensure any new spending is adequately funded, and that Italy respects its international commitments, said a senior state official who declined to be named discussing strategy. It’s up to Mattarella to nominate the prime minister before he or she can face a confidence vote in parliament.
Salvini has insisted that it shouldn’t be him or Di Maio, though Five Star officials say their leader is still hoping to get the job. Five Star won more parliamentary seats than the League in March, though the center-right alliance headed by the League was the biggest group overall. Both leaders claimed the right to be premier.
If Mattarella approves the two leaders’ choice, he will ask that person to form a government. The premier-designate would then draw up a list of ministers, to be submitted to the president for approval before a swearing-in ceremony. A new government could go before parliament for votes of confidence, in the lower House and in the Senate, by the end of the week.
SOURCE : BLOOMBERGQUINT
Thanx..Stay connected with us for more Political News..
The two populist leaders who sealed a pact to form a new government are due to brief President Sergio Mattarella. The head of state is likely to press them on their plans to slash taxes and boost spending on the poor, as well as demands for reform of the European Union.
But most of all, he’s going to want to know who’ll be charged with leading the administration.
Luigi Di Maio, the head of Five Star, and Matteo Salvini of the League both said Sunday they’d agreed on a candidate. The Corriere della Sera newspaper reported that it’ll be Giuseppe Conte, a 54-year-old law professor at Florence University. Conte himself posted a picture of John F. Kennedy on his WhatsApp profile over the weekend with the line, “Every accomplishment starts with a decision to try.”
Eleven weeks after Italy’s inconclusive general election, the rapprochement between anti-establishment Five Star and the anti-immigrant League triggered a week of turmoil in Italian bonds and stocks. The 10-year yield spread over German bunds ended Friday at the widest since October, prompting a word of caution from Paris.
Tax Cuts, Spending
“If the new government takes the risk of not respecting its commitments on debt, the deficit and the cleanup of banks, the financial stability of the entire euro zone will be threatened,” French Finance Minister Bruno Le Maire said Sunday in an interview with Europe 1 radio.
France is the first EU government -- and another of the bloc’s six founder members -- to voice concern at the coalition’s 58-page “Contract for a Government of Change.”
The plan includes lowering the retirement age, a “citizen’s income” for the poor and jobless, and main tax rates of either 15 percent or 20 percent for companies and individuals. It also calls for a review of EU treaties and European “bail-in” rules for the banking industry, saying savers should get more protection. Supporters of both parties have endorsed the program since it was released on Friday morning, with more than 90 percent voting in favor in ad hoc ballots.
“In Europe there are rules that must be respected,” Le Maire said. “I respect the sovereign decision of the Italian people, but there are commitments that are bigger than any one of us.”
Mattarella, the 76-year-old head of state and a former constitutional court judge, is determined to use his constitutional prerogatives to ensure any new spending is adequately funded, and that Italy respects its international commitments, said a senior state official who declined to be named discussing strategy. It’s up to Mattarella to nominate the prime minister before he or she can face a confidence vote in parliament.
Salvini has insisted that it shouldn’t be him or Di Maio, though Five Star officials say their leader is still hoping to get the job. Five Star won more parliamentary seats than the League in March, though the center-right alliance headed by the League was the biggest group overall. Both leaders claimed the right to be premier.
If Mattarella approves the two leaders’ choice, he will ask that person to form a government. The premier-designate would then draw up a list of ministers, to be submitted to the president for approval before a swearing-in ceremony. A new government could go before parliament for votes of confidence, in the lower House and in the Senate, by the end of the week.
SOURCE : BLOOMBERGQUINT
Thanx..Stay connected with us for more Political News..
No comments:
Post a Comment