Italy adopts stimulus plan but government risks imploding
Former President of the Italian Council Matteo Renzi.
AP - Alberto Pellaschiar
Text by: RFI Follow
5 mins
The Italian government adopted on Wednesday, January 13 a stimulus plan of 222.9 billion euros to relaunch an economy damaged by the coronavirus pandemic.
But the ruling coalition is in danger of imploding due to a disagreement over the use of EU funds.
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"
The Council of Ministers has validated the #RecoveryPlan, the largest investment plan ever undertaken in Italy
", welcomed the Italian Minister of the Economy, Roberto Gualtieri, on his Twitter account.
This “Recovery plan”, which has yet to pass through Parliament, could however spell the end of the government alliance between center-left parties (Democratic Party and Italia Viva) and the 5 Star Movement (M5S, anti-system).
The
boss of Italia Viva (IV), the former president of the Council Matteo Renzi
, had undertaken not to torpedo the adoption of the plan, and thus not to delay the arrival of European funds.
But he had set conditions on its content, which he considers unsatisfied and therefore threatens to leave the government the two ministers of his small party.
"
We will take a decision [this Wednesday morning] and [this Wednesday] afternoon we will announce it in a completely free way during a press conference
" fixed at 4.30 pm UT, Matteo Renzi indicated on the RAI3 television channel this Tuesday evening.
The two ministers of IV, Teresa Bellanova (Agriculture) and Elena Bonetti (Family), abstained during the vote on the stimulus plan.
Matteo Renzi accuses the chief executive, Giuseppe Conte, of having arbitrated to the detriment of investment and structural reforms.
He also demanded that the country appeal to the European Stability Mechanism (ESM), designed to help countries in the euro area in difficulty.
He blasted "
a government that wastes [its] children's money
."
Giuseppe Conte has yet agreed to review his copy.
It more than doubled the funds allocated to health and raised the share of investments, which now stands at 70%, against 21% for tax incentives and other bonuses.
"
Poker game
"
Several options are now on the table: resignation of the two ministers of Italia Viva, reshuffle or new head of government.
Without the support of Italia Viva's 18 elected members of the Senate, Giuseppe Conte would lose his majority of 166 seats out of 315 and Italy would then have to return to the polls.
A catastrophic scenario for the current President of the Council, who is however not favored by the experts.
Because neither Italia Viva, credited with 3% of the voting intentions in the polls, nor the other members of the coalition have any interest in scuttling themselves, the right-wing and far-right opposition being assured of winning early legislative elections.
“
Conte is over.
The right is ready
”, also launched this Tuesday evening Matteo Salvini, the leader of the far right party Lega.
►
To read also: Coronavirus in Italy: in Lombardy, the specter of poverty extends
Towards a reshuffle
Giuseppe Conte judges that it will be "
impossible for him to remake a new executive with the support of IV
" in the event of the withdrawal of his ministers, according to a source.
But he will not necessarily have the choice of weapons.
A reshuffle, with a rise in the power of ministers appointed by Italia Viva, is considered the most likely way out of the crisis.
However, it depends on the will of Giuseppe Conte and Matteo Renzi to overcome their differences.
Several leading figures in the majority have called on party leaders to be responsible as Italy, which has deplored nearly 80,000 deaths since the start of the Covid-19 pandemic, is mobilizing to accelerate its mass vaccination program.
"
In the midst of a pandemic, a crisis would be truly incomprehensible and dangerous
", thundered the Minister of the Economy (Democratic Party), Roberto Gualtieri.
The first beneficiary of the 750 billion euros mega-plan adopted in the summer of 2020 by European leaders, Italy is eagerly awaited on its projects which it must submit to Brussels by the end of April.
The country is indeed raising concerns because the Italian government has been accused in the past of misusing EU funds.
The stimulus plan risks increasing Rome's colossal debt.
It is expected to reach 158% of GDP, the second highest ratio in the euro area behind Athens.
►
To listen: Italy: the transformations of the Brescia hospital to better fight against the Covid-19
(With
AFP)
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