Italy PM Mario Draghi resigned just before the election

Italy PM Mario Draghi resigned just before the election

After Mario Draghi, the prime minister of Italy resigned due to the dissolution of his national unity government. It sent shockwaves through the financial markets. An early election will be held on September 25.

In Italy, where the budget legislation is often passed by parliament in the second part of the year, this will be the country’s first October national election in over a century.

It’s going to be a contentious campaign, held in the oppressive summer heat of a nation suffering from a drought.

An analysis of recent opinion surveys indicated this week that a group of conservative parties, including the far-right Brothers of Italy, seem to have a good chance of winning a clear majority.

President Sergio Mattarella urged Draghi, an unelected former central banker who has presided over a large coalition for over 18 months, to continue in a caretaker position after Draghi submitted his letter of resignation earlier on Thursday.

Draghi warned his cabinet colleagues that “we must deal with the crises relating to the pandemic, the situation in Ukraine, inflation, and the cost of energy.”

He said that the National Recovery and Resilience Plan, which calls for Italy to access billions of euros in post-pandemic European Union subsidies in exchange for reforms, must also be put into effect by the government.

Even though the election is scheduled for the end of September, it can take weeks of negotiations before a new government is sworn in.

On Wednesday, Draghi’s coalition disintegrated after three of his key allies rejected a vote of confidence he had convened to heal differences and revive their problematic partnership.

Before the legislature’s anticipated conclusion in the first half of the next year, he had attempted to reestablish his authority as parties started to go in separate ways.