What’s next for Italy as populists take charge?

File photo showing Italy's far-right League leader Matteo Salvini at the Foreign Press Club news conference (Reuters)
Updated 21 May 2018
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What’s next for Italy as populists take charge?

  • Italy's proposed coalition mix of far-right, anti-establishment and euro-skeptic policies.
  • Both Di Maio and Salvini insist that they want to create a coalition that can last the full five-year mandate and implement their program.

ROME: A mix of far-right, anti-establishment and euro-skeptic policies, was promised by Italy’s proposed coalition government, leading the international community to wonder what the future holds for the eurozone’s third largest economy.
Here are answers to five pressing questions as the League and Five Star Movement (M5S) prepare to take charge.
Despite outspoken criticism of the European Union from both parties, the final version of the M5S-League government program does not mention a unilateral exit from the eurozone.
M5S abandoned their idea of a referendum on the euro and while the League has called the currency “a failed economic and social experiment,” the party has proposed a series of reforms and an eventual coordinated group exit along with a number of other countries in the long term.
M5S hold more clout in the new coalition having won almost 33 percent in March’s election, compared to the League’s 17 percent, even if League leader Matteo Salvini claims to represent the 37 percent who voted for his rightwing coalition.
While Salvini is the undisputed top dog of the League, the shadow of M5S founder Beppe Grillo, an outspoken former comedian, still looms large over the party led by Luigi Di Maio.
A question mark also hangs over the fate of flamboyant former premier Silvio Berlusconi. Part of the rightwing alliance with Salvini, Berlusconi begrudgingly gave the green light for the League and M5s to make a deal without his Forza Italia party.
The aging media tycoon, however, disapproves of the new government program and, after a recent court ruling overturned a ban on him holding public office, could once again be able to exert influence from inside parliament — if a member of his party offers up their seat.
Never afraid of a long shot, Berlusconi has also offered himself up as a potential future premier.
Both Di Maio and Salvini insist that they want to create a coalition that can last the full five-year mandate and implement their program.
Their parties, however, only have a wafer-thin six vote majority in the Senate, which holds the same power as that of the Chamber of Deputies, where they have a 32-vote majority.
The two parties will have to hold onto their MPs, particularly those who view the new alliance with skepticism, in order to go the distance.
A tumultuous campaign, inconclusive elections and a prolonged period of political deadlock meant that financial markets were already nervous, especially faced with the possibility of a return to the polls.
So the prospect of a M5S-League accord was initially met with some relief — until the coalition revealed their government program.
In response to the document’s costly financial measures and euroskeptic tone, key financial indicators pointed to decreasing investor confidence in Italy.
The difference in yield between Italian and German 10-year government bonds has gained 40 points in less than a week, increasing to 170 points.
Italy’s president Sergio Mattarella has the power to veto ministers and reject any law deemed financially non-viable for the country.
He is also the guarantor of Italy’s international commitments and will keep a close eye on any move to modify the country’s role on the world stage, especially given Salvini’s scathing comments about the EU and praise for Russian leader Vladimir Putin.


EU hits Venezuela vice president Delcy Rodriguez with sanctions: Statement

Updated 35 min 35 sec ago
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EU hits Venezuela vice president Delcy Rodriguez with sanctions: Statement

  • EU foreign ministers meeting in Luxembourg on Monday formally approved travel bans and asset freezes
  • In January, Europe added seven senior Venezuelan officials including the interior minister to its sanctions blacklist

LUXEMBOURG: Venezuelan Vice President Delcy Rodriguez was among 11 senior officials hit Monday by EU sanctions over irregularities in the reelection of President Nicolas Maduro, the bloc announced.
“The persons listed are responsible for human rights violations and for undermining democracy and the rule of law in Venezuela. The measures include a travel ban and an asset freeze,” the European Union said after its 28 foreign ministers backed the move at a meeting in Luxembourg.

After the 28 EU states pledged last month to "swiftly" punish Caracas with measures, EU foreign ministers meeting in Luxembourg on Monday formally approved travel bans and asset freezes against the 11, who were to be named later in the official announcement.
The EU said last month that Maduro's re-election "lacked any credibility" and did not meet even "minimum international standards" for free and fair polls.
In January, Europe added seven senior Venezuelan officials including the interior minister to its sanctions blacklist, after in November enforcing an embargo on weapons and equipment that could be used for political repression.
Maduro won 68 percent of the vote in the May election, which was boycotted by the opposition and condemned as illegitimate by much of the international community.