Italy: Political chaos – TD Securities

Analysts at TD Securities note that the Italian PM Conte resigned last night, after a blistering attack on League leader Salvini in a speech to the Senate.

Key Quotes

“What happens now is up to President Mattarella. 5Star is reportedly in talks with PD in an attempt to form an alternative government and avoid elections, although the math is still not in their favour to obtain a majority in both the lower and upper houses.”

“The President will likely give some time for those parties to attempt to come to an agreement, or could even try to put together a less political, caretaker government in order to pass key budget legislation. So at this point, it's still unclear whether Italy will be heading into snap elections this autumn, or whether a new grouping could come to an agreement to govern and delay elections for some time.”