Dispute over corona billions: Italy's government is facing the ultimate test

Tuesday, January 12, 2021

Dispute over corona billions
Italy's government is facing an acid test

In the middle of the Corona crisis, the government of the non-party Prime Minister Conte is about to end. In the coalition, the dispute over billions in pandemic aid from the EU is escalating. If an agreement fails, chaos, new elections and a resurgence of Salvini's right-wing Lega threaten.

In the middle of the Corona crisis, the Italian government is facing the ultimate test and the country is facing political chaos. The small coalition partner Italia Viva of former Prime Minister Matteo Renzi has threatened to withdraw his two ministers from the cabinet. One of the biggest points of contention is the allocation of the corona reconstruction aid that the EU has promised Italy. The long postponed cabinet meeting on this is to begin at 9:30 p.m.

Should Renzi withdraw his support, the government led by Prime Minister Giuseppe Conte would no longer have a sufficient majority in parliament. One scenario could then be a comprehensive reshuffle of the cabinet, in which Conte could take his hat, another would be a new election in which the right-wing populist Lega could gain strength.

Talks have been going on for days to bridge the differences between Italia Viva on the one hand and the Social Democrats (Partito Democratico, PD) and the 5-star movement on the other. There was no solution in sight. "I think it would be a serious political mistake that would harm Italy and that the Italians would not understand," said PD chief Nicola Zingaretti on Sky Italia television. "I call for a return to common sense and conversation."

5-Stars and Conte don't want to continue with Renzi

One solution would be for all previous partners to negotiate a new coalition agreement. This would open the way for a major cabinet reshuffle – with or without the non-party Conte at the top. However, the largest coalition partner, the 5-star movement, has already rejected it. "If Renzi is responsible for the withdrawal of his ministers, then there can be no more government with him and his Italia Viva," 5-star boss Vito Crimi told the Ansa news agency. "There is a limit to everything."

From Conte's office it was reported that the Prime Minister did not want a new coalition with Renzi if Agriculture Minister Teresa Bellanova and Family Minister Elena Bonetti (both Italia Viva) leave the government. PD chief Zingaretti warned that everything could quickly get out of control and a new election would result. According to polls, a Euro-skeptical right-wing bloc led by Matteo Salvini's Lega would win the general election.

Italian President Sergio Mattarella wants the government and parliament to approve the reconstruction plans. If this does not succeed, he would probably sound out the chances for a government of national unity to cope with the corona and economic crisis. Should the formation of such an expert government fail, the only option would be to dissolve parliament and hold a new election – two years before the end of the legislative period. Renzi, who was prime minister of a center-left government and PD chairman, founded Italia Viva in autumn 2019. Now he is trying to regain momentum for his party, which is currently only two to three percent in surveys.