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Govt bid collapses after Mattarella rejects Savona

Govt bid collapses after Mattarella rejects Savona

President cites position in euro, risk of financial turmoil

Rome, 27 May 2018, 21:40

Redazione ANSA

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Premier designate Giuseppe Conte on Sunday dropped his bid to form a 5-Star Movement/League government after President Sergio Mattarella rejected the nomination of Paolo Savona as economy minister.
    The appointment of economist Savona, a former industry minister who has expressed Euroskeptic positions in the past, was a deal breaker for League leader Matteo Salvini and the anti-establishment M5S. Italy now faces the prospect of another general election after the inconclusive March 4 vote.
    The head of State said he did not make the decision "with a light heart" but added that he could not approve the appointment of euro-exit supporter. "The uncertainty about our position in the euro has alarmed Italian and foreign investors who have invested in our bonds and companies," Mattarella said. "The rise in the (bond) spread increases the (public) debt and reduces the possibility of spending in the social field.
    "This burns away resources and the savings of companies and prefigures risks for Italian families and citizens, including for mortgages".
    Mattarella added that some parties have requested a new general election and that he would decide on the basis of developments in parliament. Mattarella is set to meet former spending review commissioner Carlo Cottarelli on Monday and he may be asked to form an interim government.
    Senior members of the M5S are furious, with some talking of impeachment. M5S sources said that it is the "biggest fake new in history" that Savona has called for Italy to quit the euro. "I want a different Europe, one that is stronger but fairer," Savona said in a statement on Sunday. "Wild controversy has been made out of my ideas. I believe in European political union".
   

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