18.05.30 Italy Government

May 30, 2018
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Europe Without Italy?

Political Power Struggle

Italy’s government in disarray; new elections possible; stocks tumble worldwide on news.

Some say Italy’s fate could be bigger than “Brexit” and pull apart the European Union.

in inglese, per favore

Political Crisis Explained

3 months after Italy’s parliamentary election, 2 winning parties finally compromised on a plan to govern.

But this weekend, Italy’s pro-EU Pres. blocked the plan, vetoing the coalition’s pick for finance minister because he’s anti-EU.

Now it’s a political standoff that will likely lead to new elections as soon as June.

Why It Matters

  • Italy = Europe’s 3rd largest economy, effectively without a gov’tA since March elections.
  • Now concerns that Italy’s political uncertainty could spill into the global economy & financial markets, and threaten survival of European Union.

Now What?

Another round of elections may serve as a proxy vote on Italy leaving EU. Global markets sold off on that prospect with Eurozone Bank Index (Big Bank stocks) suffering biggest daily drop since 2016 Brexit vote – U.K's decision to leave the European Union.

by Jenna Lee,