The current Italian Prime Minister, Mario Draghi, has recent announced his resignation as the country is under a great political and economic turmoil. The elections are to be snapped somewhere as early as October this year.
Despite Draghi’s resignation, the government is to continue ruling, playing a role of a caretaker, so as to handle the current situation of ongoing economic and business crisis. However, it will not be as effective as it used to be previously.
Mattarella accepted the resignation on Thursday and is soon to meet with all the speakers of both the Italian houses of parliament for mutually agreeing upon the upcoming political phenomenon in the country – the emergency voting is most likely to be conducted after the summers.
October 12 remains the stipulated date for the ballet to hold place – the elections in fall are to prepare an annual budget for the year. The yield on Italy’s 10-year note has jumped up to 21 basis point to 3.6%, indicating a record high since June. There has been a similar impulse of equivalent German bonds, which have risen by 233 base points. Reacting to the same, Italy’s stock index has fell up to 2.2%
The recent resignation by Draghi has pushed Italy into further discourse as Europe is shifting for a recession, where Italy is among the top contenders with a brewing political, energy and economic crisis going on.
The Italian lawmakers will now require introducing reforms for unlocking 200 billion Euros by the aid offered by the European Union, without the presence of ex-central banker. The collapse of Mario Draghi had been inevitable following the withdrawal of three of his coalition partners in a confidence vote on Wednesday.
