Carlo Cottarelli, former director of the IMF, addresses journalists after speaking with Italian President Sergio Mattarella on May 28, 2018 at the Quirinale presidential palace in Rome, Italy. (Michele Spatari/NurPhoto/Zuma Press/TNS)

Italy mired in political turmoil as populist parties rage

ROME — Italy sank deeper into political uncertainty as populist leaders pulled the plug on their attempt to form a government after the president rejected their choice of a euroskeptic, Germany-bashing candidate as finance minister.

The anti-establishment Five Star Movement said it was considering proposing impeachment of President Sergio Mattarella, while anti-immigrant League leader Matteo Salvini hinted at a conspiracy and made a thinly veiled call for new elections.

Five Star leader Luigi Di Maio blamed credit-rating companies for torpedoing the cabinet.

“Let’s be clear then, what’s the point of going to vote since governments are decided by the credit-rating agencies and the financial lobbies,” Di Maio said on his Facebook page. On Friday, Moody’s put Italy’s credit rating on review for a possible downgrade, citing risks to its fiscal strength from the government plan put forward by Di Maio and Salvini.

Mattarella said he rejected the populists’ choice of Paolo Savona for finance minister for the good of the country and the financial “savings of families” that had been endangered by rising bond spreads and market concerns.

The president summoned Carlo Cottarelli, a former executive director of the International Monetary Fund, to his office on Monday, a state official said. Cottarelli may be asked to try to form an interim government before the country heads to early elections, according to television broadcaster RAI.

Five Star leaders are discussing a possible attempt to seek Mattarella’s impeachment, invoking a constitutional clause which says the president is not responsible for actions carried out as part of his office, except for high treason or for violating the constitution, a Five Star official said. Mattarella’s office declined to comment on the report.

A government plan by the Five Star’s Di Maio and Salvini of the League had spooked European Union partners and financial markets with pledges for fiscal expansion and tax cuts challenging EU budget rules. The Italy-Germany 10-year yield spread reached the widest since 2014 on Friday.

Both men have vowed to vote against a so-called technocratic or nonpartisan government, if such a coalition comes to a confidence vote in Parliament.

“I agreed to all the ministers except the finance minister,” Mattarella said at the presidential palace in Rome. “I asked for a figure who would mean not risking an exit from the euro. Now some political forces are asking me to hold elections. I will take decisions on the basis of how the situation evolves in Parliament.”

Both Salvini and Di Maio had staunchly backed Savona, and pressed Mattarella regarding the proposed government team in separate meetings with the head of state earlier on Sunday afternoon.

“We worked for weeks, day and night, to ensure the birth of a government which defends the interests of Italian citizens. But someone (under pressure from whom?) said no to us,” Salvini wrote in a Facebook post. “At this point, with the honesty, coherence and courage of always, you must now have a say,” Salvini said in a call for early elections.

Just Posted

SF Police Commission leaders back chief amid call for resignation

Police union demanded Scott step down after apology over Adachi leak investigation

State bill could dismantle SF regulations of bikeshare, e-scooters

Legislation backed by Uber, Bird would override local rules for ‘micro-mobility’ services

Mission entrepreneurs threatened with displacement may win a reprieve

Planning Commission approves 10-year exception to use restrictions for Activspace building tenants

Police chief acknowledges raid on journalist’s home may have violated state laws

Admission marks major turnaround for department after outrage over First Amendment violation

Most Read