MNI: Italy Democrats Showdown Meet To Block 5SM Deal- Sources

--Renzi's Hawkish Stance On 'No Deal' Likely To Prevail

--Dovish 'New Guard' Eyes German-Style Ruling Convergence To Exit Deadlock

--Five Star Leader Calls For June Election

By Silvia Marchetti

     ROME (MNI) - The chances of a swift end to Italy's electoral impasse could

rely upon the outcome of the Democrat Party's key directorate meeting, to be

held Thursday. 

     However, Democrat party sources told MNI it is likely they will decide

against any alliance with the populist 5 Star Movement, who emerged from the

March elections as the largest party.

     Former Democrat Party secretary and erstwhile prime minister Matteo Renzi's

no-compromise 'iron fist' stance against 5 Star is expected to prevail, but the

party, now in opposition, is torn in two and is prepared for a bitter showdown.

     The hawkish members of Renzi's inner circle are still against teaming-up

with 5SM, while the more relaxed new guard are pushing for a governing agreement

to exit the already 2-month long political stalemate. 

     --RENZI SUPPORT

     Despite Renzi quitting the party leadership role following the electoral

defeat, he still enjoys wide support within the party.

     "We have said from the very beginning that we share nothing in common with

5 Star in terms of programs and political culture, we can't betray our voters.

We are confident that our hard line against a deal with our opponents will

prevail at the meeting," a leading aide to the former premier told MNI.

     In his view, Renzi could still count on the support of the majority of the

directorate, even though a few key "loyal" members stepped down at the same time

as he did, but accepted the debate still needed to be fully weighed. 

     "One thing is sure: we do have the support of the party's parliamentary

groups, both in the Senate and Lower House," added the aide. 

     --INTERNAL DISSENT

     A problem for the hard-liners is that internal dissent critical of Renzi

and in favor of a softer approach towards 5 Star has grown since the Mar 4 vote

and now boasts the new party secretary, former minister Maurizio Martina among

its ranks.

     Martina has opened up to the possibility of "converging" towards a set of

shared goals with 5 Star, after their leader Luigi di Maio ditched coalition

talks with the centre-right and offered the Democrats a German-style grand

coalition deal.

     "Let's see what happens Thursday, but if an opening is approved, the best

way to evaluate what our voters think of a potential alliance with the 5 Stars

would be to launch a consultation after the directorate," said Andra De Maria, a

Democrat dissident bloc member.

     Other Democrats are confused on what further steps could be taken. Another

high-profile party figure expressed concern that "enormous divergences" remained

with 5 Star, but at the same time acknowledged the need to contribute in

supporting the formation of a new government "for the sake of the country". 

     "We want to help head of State Sergio Mattarella in his difficult task. He

has asked us to discuss whether there are grounds of a possible alliance with

the 5 Stars, and that's what we will do," the party figure added. 

     Democrat leader Martina has repeatedly stressed that even though Italian

voters have put the party in opposition, this doesn't exclude "party

responsibility" in helping secure a stable government. 

     --ELECTION CALL

     "The risk is that if this third round of party talks fail, led by Lower

House president Roberto Fico, there is no other way out. It's the last chance of

finding a solution, for a second vote would be disastrous", said the official. 

     The outcome of the Democrat directorate meeting will determine the third

round of party talks, led by the Lower House's new president Roberto Fico, a 5

Star deputy close to the left. Fico will then inform President Mattarella if

there are grounds to form a governing majority. 

     Should Fico fail, another vote which could be held as late as October,

although 5SM leader Luigi Di Maio Monday called for elections as early as June.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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