Italy’s political crisis has deepened after Prime Minister Giuseppe Conte tendered his resignation to President Sergio Mattarella, rather than face a vote of no confidence from his coalition partner, Matteo Salvini.
Salvini’s party, the Five-Star League, is currently only the third-largest in the parliament on its own, but Salvini is widely considered to have ambitions to being Prime Minister. Discussions will take place over the next few days as a new government is attempted to be formed, but, if they prove fruitless, Italy could be due for an autumn election. It will then be a rush to pass the budget – whose expansionist nature the EU is opposed to – in time for the October deadline.
After a quiet week of economic releases, we will see Eurozone-wide, German and French manufacturing and service figures and ECB meeting accounts, as well as consumer confidence flash figures, expected to show further decline.
