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Subject
Outlook for Italian government.
Significance
The six-week delay in publishing the draft 'Relaunch Decree' underlines the deepening division within the coalition between the Five Star Movement (M5S) and the Democratic Party (PD). It also shows Prime Minister Giuseppe Conte’s lack of political support as he moves from tackling the medical emergency to addressing the deep economic downturn.
Impacts
The EU’s proposed recovery programme will narrow the spread between German and Italian government bonds.
Italy’s recession could increase the country’s demand for foreign direct investment from China.
If the League’s support continues to decline, Salvini’s leadership of the party will come under greater scrutiny.
Keywords:
Italy,
EU,
EUR,
economy,
international relations,
politics,
fiscal,
government,
opposition,
party,
foreign policy,
growth,
health,
labour
© 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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