Italy’s Political Turmoil: May 28, 2018

On May 28, 2018, Italy faced significant political instability when President Sergio Mattarella rejected the appointment of Paolo Savona as Finance Minister. This decision led to the resignation of Prime Minister-designate Giuseppe Conte, intensifying the challenges in forming a government after the general elections.

Background

Italy’s general elections on March 4, 2018, resulted in a hung parliament, with no single party or coalition winning an outright majority. The Five Star Movement (M5S), a populist party led by Luigi Di Maio, emerged as the largest party, while the right-wing League, led by Matteo Salvini, formed the largest coalition. After weeks of negotiations, the M5S and the League struck a coalition agreement and nominated Giuseppe Conte, a law professor with no prior political experience, as Prime Minister-designate.

The Controversy

The coalition’s proposed cabinet appointment of Paolo Savona, a Eurosceptic economist known for his critical views on the European Union and the Euro, as Finance Minister became a point of contention. President Sergio Mattarella expressed concerns that Savona’s appointment might destabilize Italy’s relationship with the EU and potentially endanger Italy’s participation in the Eurozone.

On May 28, 2018, President Mattarella exercised his constitutional authority to reject Savona’s appointment. In response, Conte resigned, unable to proceed with forming the government under the set terms.

Immediate Impact

Conte’s resignation deepened Italy’s political deadlock. President Mattarella’s rejection of Savona was unprecedented in Italian politics and sparked debate over the balance of power between the President and the parliamentary majority.

To resolve the crisis, President Mattarella tasked Carlo Cottarelli, a former International Monetary Fund official, with forming a stopgap government. However, this move faced resistance from the M5S and the League, both of which considered it undemocratic, as Cottarelli lacked backing in Parliament.

Aftermath and Broader Significance

The political deadlock and the President’s decision heightened tensions in financial markets, causing concerns over Italy’s economic stability and its commitment to the EU. Eventually, a resolution was reached on June 1, 2018, when a new agreement led to Giuseppe Conte being reinstated as Prime Minister with a revised cabinet, excluding Savona from the finance position.

This episode underscored ongoing tensions between Italy’s populist movements and traditional political structures. It also highlighted broader questions regarding Italy’s future in the European Union, influencing the political discourse in Italy and across the continent.