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MNI US Macro Weekly: Politics To The Fore
REPEAT: MNI: : Italy 5-Star Expect To Be Part of Future Govt
Repeats Story Initially Transmitted at 12:53 GMT Jan 10/07:53 EST Jan 10
--Party Spokesman Says 5-Star Aim For Senior Cabinet Posts
By Silvia Marchetti
ROME (MNI) - Italy's anti-establishment 5 Star Movement is likely to play a
major role in the formation of the next government with a strong likelihood is
could hold significant cabinet positions, Market News a senior party spokesman
told Market News in exclusive comments.
"We aim to win at least 35% of votes at the March elections, so our
contribution to the next government, and to what happens in Italy in the next
few months ahead, will be crucial," Danilo Toninelli, 5 Star spokesman in
parliament's Lower House told Market News.
Toninelli argued that "without us, if parliament rejects a vote of
confidence in our favour and other parties are not willing to join forces, then
I'm afraid Italy is fated to head to a second election in the short run, risking
increased political instability and, by extension, market volatility".
--SECOND ELECTION?
At least another two months would elapse before a second election takes
place, possibly in May, in order to give parties extra campaigning time to lure
swing voters.
Such political turmoil is due to the new voting system that could block any
party from winning the necessary 40% of votes outright, thus favouring
coalitions, but prolonging the process of forming government.
According to recent polls, 5 Star, the second-largest political party in
parliament after the Democrats, are currently enjoying a 27% to 30% share of the
vote.
Therefore, there is a risk that the election aftermath will see no
immediate, and clear ruling majority. This would lead a round of coalition
discussions, to see where (or if) a governing majority could be found before
President Sergio Mattarella launches official talks to instate a Cabinet.
"As soon as the ballot boxes deliver the first result, if of course we do
get enough votes to provide the next premier, then we will move on our own and
give rise to a 5 Star-led government. But if not, we'll appeal to all political
parties to reach an agreement on a possible ruling coalition for the sake of the
country," said Toninelli.
The 5 Star Movement's candidate for the Prime Minister's office, Luigi di
Maio, has seen his popularity rate drop in recent weeks as the Democrat's Matteo
Renzi and Forza Italia Silvio Berlusconi, both former premiers, pick up support.
The party that ends up winning the most votes in March, will provide the next
prime minister.
Despite earlier "no compromise" tough stances, 5 Star are softening their
"one-party" position, opening up for potential dialogue with other political
groups.
"One thing is clear; though, we will never strike alliances just for the
sake of ruling or grabbing key cabinet positions," added Toninelli. "We demand
concrete, shared programs that can better the country, guarantee stability and
tackle current economic challenges".
--POLITICAL CHAOS
Analysts, though, are sceptical that the 5 Star Movement, founded by comic
Beppe Grillo in 2009, will succeed in recruiting potential allies after the
vote.
"The 5-Star are well aware that they need to obtain 40% for a one-party
government, which sounds like an impossible aim as they admit themselves," said
Giovanni Orsina, director at Rome-based LUISS University.
"Above all, they're likely going to be abandoned by everyone: no party at
the moment wants to join forces with 5 Star. Not even the populists are open to
such an option," Orsina said.
This leaves the question of Italy's political future open, with Orisna
seeing only political chaos ahead.
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
To read the full story
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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.