No Sign Of Resolution To Political Crisis As PM Draghi Visits Algeria

Prime Minister Mario Draghi visits Algeria today to meet with gov't officials to discuss a potential gas supply deal amidst an ongoing political crisis in Rome.

• At present it seems likely that Draghi is set to announce his resignation on Wednesday 20 April when he delivers addresses to the Chamber of Deputies and the Senate. Comes after the populist 5-Star Movement refused to back a gov't financial aid decree in a confidence vote in the Senate last week.
• Draghi stated that without full support from all gov't participants he would resign from office. He attempted to do so in the immediate aftermath of the Senate vote, but this offer was rebuffed by President Sergio Mattarella.
• On Friday, MNI reported that Draghi fully expects to resign on 20 July, according to a source within the gov't close to Draghi (see: https://marketnews.com/homepage/mni-italy-pm-dragh...)
• Should Draghi resign, an early general election is on the cards given that finding a suitable alternative PM is unlikely. Moreover, the right-wing League and centre-right Forza Italia have indicated that they will not work with the 5-Stars again, stating over the weekend "it is to be excluded the possibility of governing again with 5-Stars due to their incompetence and unreliability".
• Despite this uncertainty, Draghi is in Algeria today where he is looking to sign off on gas deals to assist in diversifying Italy's energy mix away from Russian dependency (BBG reports Mattarella's rejection of Draghi's resignation came in order to ensure PM could sign this deal).