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ITALY

Italian Prime Minister Giuseppe Conte has offered his resignation to President Sergio Mattarella this morning in a move that has numerous potential outcomes and remains a risky gamble for the PM.

  • Resignation gamble could end several ways:
    • Re-formation of Conte government with defectors from opposition.
    • Re-formation of current government without Conte as head.
    • Formation of a national unity government for the duration of the pandemic.
    • No government can be formed with snap elections necessary.
  • The resignation comes not as an end to Conte's political career, but as an attempt to re-form a majority governing coalition while also avoiding the likelihood of a parliamentary defeat.
  • Conte had hoped to secure support from opposition lawmakers this week to avoid defeat on the justice report vote, but his attempts appear to have floundered. As such, Conte can resign and then immediately be handed the mandate to form a majority government by the president. Here, Conte can hope to entice opposition lawmakers into joining his government with official offers of government positions or accepting their policy stances into the government's agenda.
  • Conte has support of all parties forming previous gov't to remain as head of the next administration.
MNI London Bureau | +44 203-865-0981 | tom.lake@marketnews.com