Policy Briefs

C. Bastasin: Draghi’s resignation and a new – more clever – Fiscal Compact

Italy’s political instability resurfaced on July 14 when Prime Minister Mario Draghi presented his resignation to the President of the Republic of Italy Sergio Mattarella after the Five Star Movement, one of the main components of the government coalition, abstained on a confidence vote.

In 2021, Draghi accepted the mandate to form a government comprising the largest possible majority of political forces, with only the far-right Brothers of Italy staying out of the coalition. On July 14, although Draghi secured the support of the parliamentary majority, he saw that the original political majority that underpinned his mandate as Prime Minister was no longer in place.

The outcome of the current turbulent phase is still uncertain. Draghi’s resignation, offered to President Mattarella, was a necessary formal step. The President of the Republic, however, rejected Draghi’s resignation and, as a result, Draghi will return to Parliament as PM on July 20 to verify whether a majority is still possible and, eventually, reliable. In practice, there will be a new confidence vote which will determine whether Draghi will continue to serve as Prime Minister with solid political support. A lack of support cannot be entirely ruled out and the eventuality of new elections, though not the most likely, is far from marginal.

Whatever the outcome from the negotiations underway, Italy’s political situation seems to be precipitating into troubled waters. The fact that even the most reputed of Italy’s public servants wound up mired in petty negotiations with single political parties shows that the endemic entropy of Italy’s political system relentlessly corrodes even the best endeavors.

Click here to read the document