The spread between Italian and
German 10-year bond yields, a gauge of investor confidence in
Italy, surged seven points to 170 Wednesday on fears that the
rumoured imminent resignation of Foreign Minister Luigi Di Maio
as 5-Star (M5S) leader may have a knock-on effect on the
government.
The yield on the BTP rose to 1.44%, from 1.36% at Tuesday's
close, amid mounting rumours Di Maio may quit as M5S leader
after a stream of defections from the party and poor
local-election results.
Pressure has built on the M5S leader after the loss of 18 MPs
in the last few weeks, and 31 since the current parliament was
voted in in 2018.
Several dailies including Corriere della Sera, La Repubblica
and La Stampa said Wednesday that Di Maio is on the verge of
resigning.
They said he felt he was no longer able to cope with the
combined pressure of his government duties and the day-to-day
running of the M5S.
Premier Giuseppe Conte said Wednesday he would "respect" Di
Maio's decision if he were to quit the M5S leadership.
"If it were his decision I would respect him," he said, "even
though it will be sad on the personal level".
Conte said pressure had been put on Di Maio.
"Di Maio has been pulled by the jacket, so lets's wait for
him to take an initiative," he told Italian radio.
M5S founder, the stand-up comic Beppe Grillo, has so far
stood by Di Maio after a string of disappointing local election
results.
The party's poll ratings have dropped to less than a half the
33% it won at the 2018 general election, to about 15-16%.
But its score fell below even that at last year's Umbria
regional elections, and it is expected to poll badly in Emilia
Romagna and Calabria on Sunday.
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