MNI POLITICAL RISK ANALYSIS-Italian Election Risks Stability

Executive Summary:

• The election process to decide on the next President of the Italian Republic begins on 24 January, with 1,007 parliamentarians and regional representatives set to vote on who takes over from incumbent President Sergio Mattarella.
• The major decision will, though, be taken in advance of the vote for the president. Incumbent Prime Minister Mario Draghi has been widely tipped as favouring taking over the largely ceremonial – but politically important – role of president.
• The Italian political system has proved resilient in recent months, with Draghi’s strong popularity across Italy acting as an anchor to disparate political parties. There are notable risks posed to this stability, as well as the distribution of Italy’s EU COVID relief funding, structural reforms, and the response to the pandemic itself should Draghi leave office in January. However, the former ECB president may view the Italian presidency as a role in which he can provide more stable long-term guidance to the Italian political system than his current temporary role as prime minister.

Full article attached below:

MNI POLITICAL RISK ANALYSIS-Italian Political Stability Risks Upset From Presidential Election .pdf