MNI: Italy Faces Possible July Vote, But Uncertainty Remains

--Lega, 5 Star Coalition Push To Reconsider Their Alliance

By Silvia Marchetti

     ROME (MNI) - There are high chances Italy may be holding a second vote as

early as July following calls from political parties though much will depend on

the decision of the head of state Sergio Mattarella, MNI understands.

     Sources close to both Lega and the Democrat party told MNI that at this

stage, and election was a better option. "The earlier we vote again, the better

it is. There is no sense having a cabinet running for just a few months anyway,"

said one source close to the League.

     Mattarella is meeting with prime minister designate Carlo Cottarelli, a

former IMF official, who is expected to present his list of ministers later

Wednesday for approval. But there is a high chance Cottarelli could decline the

mandate.

     But the 5 Star Movement appears to be re-considering the possibility of

forming a ruling coalition with Lega, given they believe a ruling majority

already exists. 

     An official of the centre-right Fratelli d'Italia party, a former ally of

the Lega, said they were willing to join forces with a potential Lega-5SM

alliance. 

     The problem remains that Mattarella is unlikely to give the populists

another go, after having vetoed their first, anti-European government option

which spooked financial markets, causing the spread between Italian and German

bonds to balloon. And the populist parties calling for his impeachment didn't

help relations between the parties. 

     In the best case scenario, if Mattarella decides to reconsider such an

option, the two populist parties would need to present him with an alternative,

more pro-Europe list of cabinet members, with a credible Economy minister to

soothe bond market fears. 

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

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