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Subject
Italian political outlook.
Significance
On January 26, Italy’s co-ruling Democratic Party (PD) defeated Matteo Salvini’s far-right League party by 51.4% to 43.6% in elections in Emilia Romagna, a prosperous region of northern Italy. In what was a litmus test for the fragile national coalition between PD and the Five Star Movement (M5S), the PD victory has reduced the risk of a government collapse.
Impacts
Risk-averse investors will remain cautious about Italy over the next year.
Prime Minister Giuseppe Conte hopes the result will give the government the stability to cut taxes to boost private sector investment.
Salvini’s support could decline if he continues to personalise the League’s election campaigns.
Keywords:
Italy,
EUR,
EU,
economy,
international relations,
politics,
social,
election,
foreign investment,
foreign policy,
government,
investment,
party,
policy,
regional,
fiscal,
judicial,
opposition,
private sector,
public sector,
referendum,
reform
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2020
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