Talks to seek way out of Italy's political crisis

Italian Premier Matteo Renzi concedes defeat in a constitutional referendum and announces his intention to resign. Picture: AP

Italian Premier Matteo Renzi concedes defeat in a constitutional referendum and announces his intention to resign. Picture: AP

Published Dec 8, 2016

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Rome - Italy's president began talks with

political leaders on Thursday to seek a way out of the political

crisis caused by the resignation of Prime Minister Matteo Renzi.

Sergio Mattarella, a 75-year-old former constitutional court

judge, must decide if someone can lead Italy to elections

scheduled for 2018, or whether an interim government should

serve until a snap vote can be held in spring.

Renzi tendered his resignation on Wednesday after a bruising

defeat in a referendum on which he had staked his political

future.

Mattarella's first consultations were with the leaders of

both houses of parliament, and neither commented afterwards.

Mattarella, a former Christian Democrat, also met with his

more interventioniest predecessor, 91-year-old Giorgio

Napolitano, who asked Renzi to form a government in 2014.

Napolitano also did not comment.

Meetings will expand to parliamentary parties on Friday and

wrap up on Saturday evening.

The process is a familiar one in Italy, which has a

notorious history of government collapses, but it is the first

since the Sicilian Mattarella took office last year after a

career in politics which began after the mafia assassinated his

politician brother in 1980.

Mattarella could wait until Monday to make his decision

known, a source close to the president said. Renzi has ruled out

-- for the moment -- staying on as a caretaker, a parliamentary

source said.

Most parties, including Renzi's Democratic Party (PD) which

holds the most seats in parliament, appear to favour an early

vote, which would add Italy to a list of major European

countries - including France, Germany and the Netherlands -

facing a national ballot in 2017.

So far markets have taken Italy's political turmoil in their

stride. Even Banca Monte dei Paschi di Siena, which

looks likely to require government intervention to survive, saw

its shares close up more than 4 percent on Thursday after it

asked the European Central Bank for a three-week extension to

its rescue plan.

On Tuesday, Mattarella unexpectedly dictated two conditions

that delay any vote until spring: the

Constitutional Court must rule on the lower house's current

voting law, a decision not expected before a Jan. 24.

Subsequently parliament must draft new election rules for

both houses, Mattarella indicated. Considering 45 days for

campaigning are set aside by law, it would be difficult to hold

an election before April.

The consultations allow Mattarella to test parliamentary

waters, but Renzi's majority - and his input as leader of the PD

- are key to what happens next.

On Wednesday, Renzi said the PD would only participate in a

government intended to last until 2018 if it was backed by the

main forces in parliament, a prospect most of them have already

ruled out. Otherwise, early elections should be held as soon as

possible, he said.

The rightist Northern League and anti-establishment 5-Star

Movement renewed calls for immediate elections on Thursday.

Because of the strong push for an early vote, Mattarella is

widely expected to ask a member of Renzi's cabinet, or a

politician from his Democratic Party, to put together an interim

government. 

Reuters

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