PM Mario Draghi officially resigns, Italy plunged into political chaos

ROMA, KOMPAS.com – Prime Minister Italia Mario Draghi officially submitted a letter of resignation to Italian President Sergio Mattarella on Thursday (21/7/2022).

Draghi officially stepped down after the coalition government collapsed, plunging the country into political turmoil and hitting financial markets.

Mattarella’s office said in a statement that the president had accepted the resignation and asked Draghi to remain in his role as acting agent on a temporary basis.

Also read: Italian President Rejects Resignation of Prime Minister Mario Draghi

The statement did not say what Mattarella would do next, as reported by Reuters.

Earlier this week, several political sources said Mattarella was likely to hold early elections in October.

Mattarella plans to meet with the heads of each of the Italian parliament’s houses on Thursday afternoon local time.

The coalition government collapsed on Wednesday when three of Draghi’s main partners rejected a vote of no confidence he called for trying to end divisions and renew their fractured alliance.

Also read: Glacier on Mount Italy Collapses, Death toll Increases, Dozens Still Missing

The political crisis in Italy has shaken the country’s stability over the past few months.

Draghi, a respected former central bank governor, was appointed Prime Minister of Italy in February 2021.

He helped shape Europe’s tough response to Russia’s invasion of Ukraine and has improved Italy’s position on financial markets.

“This is a major blow to Italy’s ability to deliver policies and reforms in the near future,” said Lorenzo Codogno, a former senior official at the Italian Ministry of Finance who is now the head of LC Macro Advisers.

“There will be delays and disruptions with early elections, and most likely no budget by the end of the year,” Codogno continued.

Also read: Northern Italy Worst Drought in 70 Years, 5 Regions of Emergency

Cracked Coalition

Draghi actually submitted his resignation last week after one of his partners, the 5 Star Movement Party, failed to support him in a vote of confidence on measures to tackle the high cost of living.

Mattarella rejected Draghi’s resignation last week and asked parliament to see if he could maintain the broad coalition until early 2023.

In his speech to the Senate, Draghi called for unity and set out a range of problems facing Italy ranging from the war in Ukraine, social inequality and rising prices.

Also read: Italy Drought, Romeo-Juliet Home Town Restricts Drinking Water Use

However, the 5 Star Movement Party again decided against supporting him, saying that he did not address the core issue.

Meanwhile, right-wing parties Forza Italia and the League decided to avoid voting.

They want a commitment that Draghi is willing to form a new government without 5 Stars and with new policy priorities.

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