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Home Politics

Italian Prime Minister resigns | Caribbean News Now!

Staff by Staff
July 21, 2022
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Italian Prime Minister Mario Draghi tendered his resignation to President Sergio Mattarella after the collapse of his unity government, which threw the country into political upheaval and impacted the financial markets.

Draghi’s resignation comes despite calls for him to remain in post, including from world leaders who see him as fundamental to not only ensuring stability in the country but as a partner in facing the challenges of Russia’s war in Ukraine.

In a statement, the President’s office noted that the chief of state had “taken note” of Draghi’s departure and requested that he serve in an interim capacity. Mattarella will likely meet with the leaders of both houses of parliament.

Wednesday, three of Draghi’s major coalition partners disregarded a vote of confidence he had called to resolve differences and restart their fragile alliance.

The political turmoil has disrupted months of stability in Italy, during which the esteemed former central banker Draghi helped design Europe’s robust reaction to Russia’s invasion of Ukraine and enhanced the country’s standing on financial markets.

Bonds and stocks fell dramatically on Thursday, as markets prepared for the European Central Bank’s first interest rate hike since 2011. In early trade, benchmark 10-year Italian bond yields soared over 20 basis points to their highest in over three weeks and Italian stocks opened down 1.8%.

According to political sources, President Sergio Mattarella will likely dissolve parliament and call for early elections in October.

Credit: Source link

Tags: CaribbeanItalianMinisterNewsPrimeresigns
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