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    Draghi is in the limelight as Italy’s presidential election approaches

    Italian Prime Minister Mario Draghi will attend a press conference at the end of the year.

    Mondadori Portfolio | Mondadori Portfolio | Getty Images

    Italy is returning to the radar of many investors as the upcoming presidential vote threatens the political stability seen last year.

    Sergio Mattarella’s term ends on February 3, so within two weeks, members of parliament and regional representatives will decide who should be president-elect. More than 1,000 parliamentary and regional representatives are expected to start voting in January. twenty four.

    Why is it important?

    The main problem is Mario DraghiCurrently, the prime minister of the country, is elected as the new president.

    Draghi, the former governor of the European Central Bank, was appointed to national affairs about a year ago, ending the country’s years of political turmoil. Yields on Italian 10-year bonds fell shortly afterwards to their lowest level in 2021. News that Draghi is likely to become the new prime minister..

    his governmentConsisting primarily of politicians from various political parties and some technocrats, has softened the market with parliamentary support and reform plans.

    However, Draghi’s potential for withdrawal from government jeopardizes this economic and political stability.

    Fear of financial and political stability

    Spending of funds is related to the implementation of previously promised reforms. Experts believe that both aspects are crucial to fostering the Italian economy, which has been struggling for many years.

    Wolfango Piccoli, co-president of consultancy Teneo, also pointed out the short-term risks to economic recovery if Draghi becomes president.

    “Italy is unlikely to hold a parliamentary election a year earlier than planned, regardless of whether Draghi is elected president. However, the process of establishing a new prime minister and a new government is noisy and the current heterogeneous ruling coalition It is likely that it will undergo a partial restructuring. “

    If the current parliamentary term expires in 2023 and there are no sudden elections in the meantime, the Italians will go to polls to choose a new parliament and government.

    Draghi signaled at a press conference at the end of the year that he could become president of the country.

    “What are you doing? [it] For Mario Draghi, he will be able to secure Italy’s stability over the medium to long term, “Berenberg economist Guido Bodorato told CNBC’s” Street Sign Europe “Thursday.

    “He also wants the party to be actually accountable. [for] Government action. “

    How does it work?

    People interested in becoming the president of Italy show their willingness, but the tradition is not to officially announce that they are running.

    Other potential candidates running are: Silvio Berlusconi, a former prime minister who was temporarily banned from public office after being convicted of tax evasion in 2012. Giuliano Amato, who served as prime minister twice. Minister of Justice of Malta and Cartabia. Former Speaker of the House of Representatives Pierre Ferdinand Casini. Economic Commissioner and former Prime Minister Paolo Gentiloni.

    “The body of the elected’major elector’” [the] The president-elect is currently made up of 1,007 members (58 regional representatives and 949 members who have not yet been appointed). “

    In the first three rounds of voting, a two-thirds majority is needed to elect a new president. After that, Piccoli emphasized that a simple majority would be enough to choose a new head of state.

    “Great voters” may participate in a long process that is expected to take six hours for a voting round due to pandemic restrictions.

    “A fierce political tactic in a closed room characterizes the presidential election because the entire process is controlled by political parties. Past experience is that if the first vote does not show a clear candidate, the dynamics of the vote itself It often suggests that, in principle, it creates a new alliance or consensus on names that was considered only as a secondary option at best, “Piccoli added.

    Draghi is in the limelight as Italy’s presidential election approaches

    Source link Draghi is in the limelight as Italy’s presidential election approaches

    The post Draghi is in the limelight as Italy’s presidential election approaches appeared first on Eminetra.

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