ROME (AP) — Italian Prime Minister Mario Draghi resigned Thursday after his governing coalition collapsed, dealing a destabilizing blow to the country and Europe at a time of grave economic uncertainty brought on by the coronavirus pandemic and Russia’s war in Ukraine.
Draghi submitted his resignation to President Sergio Mattarella during a morning meeting at the Quirinale Palace. Mattarella, who rejected a similar resignation offer from the prime minister last week, “took note” of the new one and asked for Draghi’s government to remain in the interim role, the president’s office said. While the president could see if a new parliamentary majority was possible, his office indicated he would dissolve the Legislature and call early elections.
The turmoil couldn’t come at a worse time for the eurozone’s third-largest economy. Like many countries, Italy is facing a spike in prices for everything from food to household services as a result of Moscow’s encroachment. The country is also suffering from a prolonged drought that threatens crops and is struggling to meet the EU-funded pandemic recovery programme.
Any instability in Italy could spill over into the rest of Europe, which is also facing economic problems, and deprive the EU of a respected statesman as it seeks to maintain a united front against Russia.
Draghi, who is not a politician but a former central banker, was brought in 17 months ago to deal with the economic downturn caused by COVID-19. But his government of national unity collapsed on Wednesday after members of his uneasy coalition of rightists, leftists and populists rejected his call to reunite to complete the Italian parliament’s natural mandate.
Instead, the center-right Forza Italia and League parties and the populist 5-Star Movement boycotted the confidence vote in the Senate, a clear sign that they are done with Draghi.
“Thank you for all the cooperation during this period,” Draghi told the lower house of parliament on Thursday morning before going to meet Mattarella. Clearly moved by the applause he received there, he repeated the joke that even central bank chiefs have hearts.
Dubbed “Super Mario” for helping steer the eurozone out of its debt crisis when he was head of the European Central Bank, Draghi has played a similar calming role in Italy in recent months. His very presence helped reassure financial markets about the debt-ridden nation’s public finances, and he managed to keep the country abreast of economic reforms the EU made a condition of its €200 billion (-$200 billion) pandemic recovery package.
He has been a staunch supporter of Ukraine and has become a leading voice in Europe’s response to Russia’s invasion – one of the issues that contributed to his downfall since the 5-Stars were outraged by Italian military aid to Ukraine.
Domestic problems also played a role. The 5-Stars, the biggest vote-getter in the 2018 national election, have been outraged for months that their priorities such as basic income and minimum wage, among others, have been ignored. The final straw? A decision to give Rome’s mayor extraordinary powers to manage the capital’s rubbish crisis – powers that were stripped of the party’s Virginia Raggi when she was mayor.
Despite failing to retain his motley coalition, Draghi still appears to have broad support among the Italian public, many of whom have taken to the streets or signed open letters in recent weeks to implore him to stay.
Italian newspapers on Thursday were united in their outrage at the surreal result, given the difficult time Italy and Europe are going through.
“Shame,” La Stampa wrote on the front page. “Italy betrayed,” said La Repubblica.
Nicola Nobile, associate director at Oxford Economics, warned that Draghi’s departure and the prospect of the country not having a fully functioning government for months could worsen economic turmoil in Italy, which investors worry is carrying too much debt and which is already expecting a significant slowdown for the second half of the year.
Last year, Mattarella had chosen Draghi to lead Italy out of the pandemic. But last week the 5-Stars boycotted a confidence vote over a bill aimed at helping Italians weather the cost-of-living crisis, prompting Draghi to offer his resignation for the first time.
Mattarella rejected that proposal and asked Draghi to return to parliament to brief lawmakers on the situation. The prime minister did so on Wednesday, urging party leaders to heed calls for unity from ordinary Italians.
“You don’t have to give me the answer. You must give it to all Italians,” he told MPs.
While the next steps were unclear, Mattarella appeared likely to dissolve parliament after a period of consultations, paving the way for elections as soon as late September or early October. The legislature’s current five-year term is set to expire in 2023.
Mattarella plans to meet with the speakers of the upper and lower houses of parliament later Thursday, his office said. The announcement cited an article in the Italian constitution that allows the president to dissolve parliament.
Opinion polls show that the center-left Democratic Party and the right-wing Brothers of Italy party, which remained in opposition, are tied.
Democrat leader Enrico Letta said parliament had betrayed Italy.
“Let the Italians show at the polls that they are smarter than their representatives,” he tweeted.
Italy’s Brothers have long been allied with former prime minister Silvio Berlusconi’s center-right Forza Italia and Matteo Salvini’s League, suggesting the center-right alliance is likely to prevail in any election and could propel Brothers leader Giorgia Meloni to become Italy’s first female prime minister .
Meloni, who fought for early elections even before the outbreak of the crisis, triumphed.
“The will of the people is expressed in one way: through voting. Let’s bring hope and strength back to Italy,” she said.
Some commentators have noted that Draghi’s government, which was among the strongest supporters of Ukraine in Europe, collapsed in large part thanks to political leaders who previously had ties to Russian President Vladimir Putin.
Berlusconi vacationed with Putin and considered him a friend; Salvini opposed EU sanctions against Russia after its annexation of the Crimean peninsula in 2014; and then there is 5 Star leader Giuseppe Conte’s opposition to Italian military aid to Ukraine.
After 5-Star senators boycotted the vote last week, Italian Foreign Minister Luigi Di Maio accused Conte of giving Putin a gift.
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