Italy’s Prime Minister Mario Draghi announced that he would step down as head of the European Central Bank after the 5 Star Movement withdrew its parliamentary support. The 5 Star Movement is Italy’s largest party in the governing coalition. The package passed by 172 votes to 39, but the 5 Star Movement’s boycott could lead to an early election and cause the government to fall.
He had just won the popular vote but lost the backing of the 5-Star Movement.
The 5-Star Party Movement was critical in helping the Italian government from coronavirus pandemic recovery.
In his words, today’s votes in Parliament are of great political significance. Most of Dhaghi’s government supporters for the national unity were not there. In Draghi’s interview, he mentioned that without the 5-Star, he would not lead the government.
Instead of accepting Draghi’s resignation, Italy’s President Sergio Mattarella asked him to assess the political situation by appearing before Parliament. Mattarella’s political parties supported this decision.
In Italy’s complex political system, Mattarella’s decision might allow for a compromise that would have Draghi serve as prime minister until elections due in early 2023.
Under Draghi, Italy — a staunch supporter of Ukraine’s military efforts — has benefited from billions of dollars in European recovery funding. His country’s strong pro-European stance and administration’s strong pro-European stance are also at stake.
Next week, Draghi is expected to speak to Parliament, and a confidence vote may be held that could ease the turmoil. Draghi might declare his resignation final if negotiations are unsuccessful, resulting in an early election.
Following the Five Star Movement’s decision to boycott a confidence vote in the upper house, Draghi said he could not govern without all his coalition partners.
Italian stock and bond futures plummeted after Draghi’s resignation. The euro fell below the US dollar, and the Italian government’s 10-year debt futures agreement plunged below 122 if their 21-day moving standard.
According to Eurocrats, Draghi has been instrumental in helping Italy maintain track with EU reforms necessary to receive USD 200 billion in pandemic recovery money. Even despite government instability, the money is unlikely to vanish.
Written by Janet Grace Ortigas
CNN: Italy’s President Mattarella rejects Prime Minister Draghi’s resignation; by Livia Borghese and Sharon Braithwaite
Bloomberg: Italian President Mattarella Rejects Draghi’s Resignation Offer; by Chiara Albanese and Alessandro Speciale
NPR: Italy’s president rejects Prime Minister Mario Draghi’s offer to resign