Italian political transition following unclear paths. Wise to wait and see

Wednesday 23 May 2018

Research / Market

The political situation in Italy is still uncertain, with some indication, but no formal appointment of the Prime Minister. We may witness a somewhat unusual state of affairs over the next few days, a sort of “technical government” of no parliamentary extraction, subject to a political contract. This could prove challenging in the medium-term, undermining the independence of the Prime Minister and the Government. The appointment of the Minister of Economy and Foreign Affairs will be key to reassure European partners in respect of EU rules, the euro and international cooperation. On these topics the positions of the two main parties are still unclear...