Free Trial

MNI: Italy's Meloni Eyes League Downgrade After June- Sources

(MNI) ROME

Tensions between Italian Prime Minister Giorgia Meloni and Matteo Salvini are making a government reshuffle likely after European Parliamentary elections in June, with poor results at the ballot box likely to leave the deputy prime minister facing challenges to his leadership of the right-wing League as the PM seeks to consolidate her control over key economic roles, officials told MNI.

While Meloni’s inner circle is trying to avoid any rupture for now, distrust is growing between both the two leaders and their parties, a government source from the prime minister’s Brothers of Italy said.

“Salvini is struggling and when an animal is hurt it is more dangerous,” he added, noting that Meloni will move to downgrade the League’s presence in the coalition government if election results are in line with polls suggesting a clear victory for Brothers of Italy. (See MNI: Meloni Seeks Euro Election Leverage For Tax Drive-Aides)

Salvini has publicly distanced himself from Meloni by pointing to differences of opinion regarding the European Union and their alliances in the continent, as the prime minister shifts to a more moderate space between the European People’s Party (EPP) and eurosceptic forces . The League leader has also criticised his coalition partner for her willingness to support European Commission President Ursula Von der Leyen’s bid for a second term.

Salvini could be tempted to withdraw his support from the government in an attempt to keep the leadership of his party, a League source said. While there is growing discontent with him within the League, its party discipline is much higher than usual in Italian politics, the source said.

TUSSLE WITH FORZA ITALIA

But if the League gains less than 8% of votes, in line with recent polls, or if it falls behind its pro-EU coalition partners from Forza Italia, Salvini is likely to step down, the source said.

In such a scenario, Forza Italia, founded by the late Silvio Berlusconi, would also push for a more prominent role in government, the Brothers of Italy source said.

Favouring Salvini’s chances of political survival is the absence of a clear successor who could lead the party, with Finance Minister Giancarlo Giorgetti not wanting the role.

Meloni’s biggest aim from a reshuffle would be to tighten her grip on economic portfolios which fell into the League’s hands due to her party’s relative inexperience when she took office in 2022, sources said.

Now, after almost two years in the role of PM, Meloni feels confident enough to consider seizing control of positions which will enable her to more easily meet electoral promises to lower taxes and carry out privatisations, sources said.

The PM could accept Giorgetti keeping the finance ministry even with a downgraded role for the League, they said, noting that the two have worked well on issues including approval of a treaty to reform the European Stability Mechanism.

MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com
MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.