![\"\"](\"https:\/\/i0.wp.com\/unshackledminds.com\/wp-content\/uploads\/2021\/01\/italy-government.jpg?resize=1000%2C666&ssl=1\")
Italy\u2019s government led by Prime Minister Giuseppe Conte risks collapsing in the middle of the Covid-19 pandemic after a junior coalition partner pulled out.<\/p>\n\n\n\n
Former Premier Matteo Renzi said his Italy Alive party is quitting the coalition, attacking Conte for failing to do enough to tackle the country\u2019s problems. Though the party is tiny, Conte relies on it to maintain his majority in parliament.<\/p>\n\n\n\n
Renzi\u2019s decision sparks a government crisis which could last days or even weeks, and has no clear solution in sight.<\/p>\n\n\n\n
After accepting the ministers\u2019 resignation, Conte could step down himself. That would likely trigger a new round of talks among parties and lead to another Conte government, a new premier or a technocratic administration. Snap elections, although a risk, appear unlikely for now.<\/p>\n\n\n\n
\u2018Act of Courage\u2019<\/h3>\n\n\n\n
Pulling out at a such a crucial moment for the country amounts to \u201can act of courage,\u201d Renzi said at a news conference in Rome. Conte\u2019s government has not done enough to resolve problems from education to infrastructure, as well as the virus, the ex-premier said.<\/p>\n\n\n\n
\u201cWe are not playing,\u201d Renzi said, addressing critics who\u2019ve accused his party of political posturing during weeks of build-up to the current crisis. \u201cDemocracy is not a reality show.\u201d<\/p>\n\n\n\n
Investors have reacted to the heightened uncertainty. German bund futures rose about 20 ticks to their highest of the day after the announcement, while Italy Treasury bond futures fell. The cost of borrowing for the Italian government has risen modestly in recent days on concerns of political instability.<\/p>\n\n\n\n The timing of the crisis for Conte could hardly be worse, with Italy battling a worsening pandemic and a recession. A cabinet meeting scheduled for Wednesday at 8:30 p.m. is due to discuss new virus-related restrictions, while on Thursday Conte is set to sign off on a plan to widen the country\u2019s deficit by about 24 billion euros ($29 billion).<\/p>\n\n\n\n Renzi said that his party is still willing to back plans for more deficit spending and any measures necessary to tackle the pandemic. He didn\u2019t rule out a new government led by Conte but said Italy Alive won\u2019t support any coalition including Matteo Salvini\u2019s League, an anti-migrant, anti-EU opposition party.<\/p>\n\n\n\n Nicola Zingaretti, head of the ruling Democratic Party, said<\/a> Renzi\u2019s move was a \u201chuge mistake.\u201d<\/p>\n\n\n\n With Renzi\u2019s two ministers now exiting the government, the focus turns to President Sergio Mattarella, who met with Conte earlier Wednesday. The president\u2019s role, largely ceremonial, also includes responsibilities for safeguarding the country\u2019s political stability.<\/p>\n\n\n\n If Conte opts to resign, he could be given a mandate by Mattarella to try to forge a new alliance.<\/p>\n\n\n\n Alternatively, the premier could seek a parliamentary vote of confidence. But if he fails to win over enough centrist and unaffiliated lawmakers to replace Renzi\u2019s Italy Alive, the government would become a caretaker administration with limited powers.<\/p>\n\n\n\n Read more: Conte\u2019s Options to Prevent Ally From Toppling Italy\u2019s Government<\/p>\n\n\n\n The existing coalition parties — including Italy Alive — could also try to revive their alliance under a different premier, such as ex-European Central Bank President Mario Draghi. They\u2019ll likely explore a range of options to avoid a new election, as surveys show the Salvini-led center-right would likely win if the country is forced into a snap vote.<\/p>\n\n\n\n \u201dThe impact of Renzi\u2019s move on Italy\u2019s fragile economy will depend on what will happen next,\u201d said Lorenzo Pregliasco, a political analyst at YouTrend. \u201cA snap vote, the worst scenario for investors, remains unlikely at this stage.\u201d<\/p>\n\n\n\n The crisis couldn’t come at a worst time for Italy. Here’s what’s at stake if Conte’s government loses its support in parliament. <\/p>\n\n\n\n Renzi had been dialing up the pressure on Conte since late last year, slamming the prime minister\u2019s plans for managing and spending European Union rescue funds. Renzi says the plan has been improved following his demands, but he\u2019s been insisting on further conditions, including that Italy tap a European Stability Mechanism credit line for health spending.<\/p>\n\n\n\n \u201cThe real issue is, should we spend more money on health with the ESM?\u201d Renzi said following his announcement on Wednesday.<\/p>\n\n\n\n \u2014 With assistance by Marco Bertacche<\/em><\/p>\n\n\n\n Chiara Albanese<\/a><\/p>\n\n\n\n John Follain<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Ex-premier says Conte not doing enough to fix country\u2019s issues Resignation triggers crisis with no clear solution in sight By Chiara Albanese and John Follain January 14, 2021, 4:20 AM GMT+11 Updated on January 14, 2021, 6:47 AM GMT+11 Italy\u2019s government led by Prime Minister Giuseppe Conte risks collapsing in the middle of the Covid-19… Read More »Italy Government on Verge of Collapse as Renzi Party Quits<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":5814,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[49],"tags":[500,2468,2467,2462,2466,2463,2405,2464],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/unshackledminds.com\/wp-content\/uploads\/2021\/01\/italy-government.jpg?fit=1000%2C666&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/posts\/5813"}],"collection":[{"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/comments?post=5813"}],"version-history":[{"count":1,"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/posts\/5813\/revisions"}],"predecessor-version":[{"id":5816,"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/posts\/5813\/revisions\/5816"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/media\/5814"}],"wp:attachment":[{"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/media?parent=5813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/categories?post=5813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unshackledminds.com\/wp-json\/wp\/v2\/tags?post=5813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Italian](\"https:\/\/i0.wp.com\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/idkVjVqYqloc\/v2\/pidjEfPlU1QWZop3vfGKsrX.ke8XuWirGYh1PKgEw44kE\/620x-1.png?w=1200&ssl=1\")
<\/figure>\n\n\n\nPresidential Role<\/h3>\n\n\n\n
Unfinished Business<\/h3>\n\n\n\n
![\"\"](\"https:\/\/i0.wp.com\/unshackledminds.com\/wp-content\/uploads\/2021\/01\/italy-government2.jpg?resize=631%2C319&ssl=1\")
<\/figure>\n\n\n\n