Topline
Italian Prime Minister Mario Draghi resigned on Thursday after his coalition government unraveled, raising the prospect of snap elections and months of political turmoil as the country battles soaring inflation and energy costs, Russian aggression and moving forward from the Covid-19 pandemic.
Mario Draghi resigned as Italian prime minister on Thursday.
Key Facts
Draghi submitted his resignation to President Sergio Mattarella after three key allies in his coalition government boycotted a confidence vote on the government Wednesday night.
Mattarella, who accepted the resignation, has asked Draghi to remain in office as caretaker prime minister.
Mattarella is slated to meet with parliamentary leaders on Thursday afternoon and is widely expected to dissolve parliament and call a snap election.
A new general election, originally expected in the first half of 2023, will likely take place in September or October.
Key Background
Draghi, the former head of the European Central Bank, has led a broad coalition government in Italy since early 2021. This coalition fractured after political party the Five Star movement boycotted a crucial vote on an aid package. Draghi tendered his resignation to Mattarella last week after the breakdown, which was rejected. Mattarella told Draghi to try and bring coalition partners around. The prospect of changing leadership in Italy has sparked concerns both home and abroad, particularly given the scale of the challenges facing the country and region at the moment. Draghi is one of the most seasoned political leaders still serving in Europe—he has been nicknamed “Super Mario” for his ability to navigate European politics—and is credited with saving the euro during the financial crisis.
What To Watch For
His departure will destabilize the EU’s third biggest economy at a time of rampant inflation, a looming energy crisis and Russian aggression. New leadership could also put key EU initiatives at risk should priorities change, such as funding for the coronavirus recovery fund.
Further Reading
Italian Prime Minister Mario Draghi Moves To Resign, Leaving Government In Turmoil (Forbes)
Draghi dangles resignation, just when Europe needs him (Politico)
Source: https://www.forbes.com/sites/roberthart/2022/07/21/italian-prime-minister-mario-draghi-resigns-as-coalition-government-crumbles/