# Factbox-Possible scenarios as Italy’s government faces collapse Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-07-15 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Potential Scenarios for Italy's Political Impasse Meta Description: Discover the potential outcomes for Italy's political landscape, from early elections to government reshuffles, amid the current political impasse. URL: https://financedigest.com/factbox-possible-scenarios-as-italys-government-faces-collapsehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-07-15t102915z1lynxmpei6e0ebrtroptp4italy-politics-1736815581512-compressed.jpg) ROME (Reuters) – Italy might need early elections to overcome a political impasse, government officials said on Friday, after Prime Minister Mario Draghi tendered his resignation in the wake of a mutiny by the 5-Star Movement, a coalition partner. President Sergio Mattarella rejected Draghi’s resignation on Thursday and asked him to address parliament next week, probably on Wednesday, to see if he has a workable and cohesive majority. Here are possible scenarios over what may happen next: SAME PREMIER, SAME PARTNERS Draghi has not lost a confidence [vote and he still has a clear parliamentary](https://www.financedigest.com/macron-with-eye-on-parliamentary-vote-visits-left-leaning-paris-suburb.html "Macron, with eye on parliamentary vote, visits left-leaning Paris suburb") majority, even without 5-Star. Moreover, the party has not said it wants to leave the [government and its ministers have not resigned](https://www.financedigest.com/uniper-ceo-to-resign-due-to-government-takeover.html "Uniper CEO to resign due to government takeover"). So on paper Draghi could continue with a multi-party coalition. However, he seems to have no desire to carry on with the economy struggling, the [war raging in Ukraine](https://www.financedigest.com/ukraine-grants-citizenship-to-top-russian-journalist-who-denounced-war.html "Ukraine grants citizenship to top Russian journalist who denounced war") and COVID-19 cases once more on the rise. He [warned earlier this week he was not willing to accept policy “ultimatums” from the parties and he told cabinet on Thursday the “pact of trust” between the ruling](https://www.financedigest.com/uk-watchdog-warns-crypto-firms-to-prepare-for-advertising-rule-change.html "UK watchdog warns crypto firms to prepare for advertising rule change") parties had been broken and his coalition of national unity “no longer exists. SAME PREMIER, FEWER PARTNERS Plausible on paper but unlikely in practice. Draghi calls a confidence vote, 5-Star doesn’t back him but he retains the support of the other coalition parties, including the rightist League, the centre-left Democratic Party (PD) and a sizeable [group of former](https://www.financedigest.com/shareholder-group-iss-backs-barclays-board-over-former-ceo-staley.html "Shareholder group ISS backs Barclays board over former CEO Staley") 5-Star politicians who split with its leader Giuseppe Conte last month. Draghi would have a smaller, but nonetheless viable [majority in both houses of parliament](https://www.financedigest.com/iceland-will-have-a-male-majority-parliament-after-all-election-recount-shows.html "Iceland will have a male-majority parliament after all, election recount shows"). However, Draghi has said he will not stay in power without 5-Star, and the League has also signalled it will not [back another government](https://www.financedigest.com/uk-lenders-trial-government-backed-loans-for-risky-borrowers.html "UK lenders trial government-backed loans for risky borrowers"). Even if Draghi and the League change their mind, the operation would upset the government’s internal equilibrium, since the coalition would be heavily skewed to the right, and [demands from the remaining](https://www.financedigest.com/fingerprint-scanners-to-remain-top-selling-accounting-for-over-one-third-of-access-control-demand-in-2021-future-market-insights.html "Fingerprint Scanners to Remain Top-selling, Accounting for Over One-third of Access Control Demand in 2021: Future Market Insights") groups could trigger fresh turmoil. EARLY ELECTIONS A snap vote in September or October looks increasingly possible, even though Italy has not held an election in autumn since World War Two, with the [final months of the year](https://www.financedigest.com/tennis-nadal-eliminated-from-atp-finals-alcaraz-to-finish-year-at-no-1.html "Tennis-Nadal eliminated from ATP Finals, Alcaraz to finish year at No. 1") traditionally dedicated to drawing up the budget. An early vote carries other risks. Italy still needs to meet many bureaucratic and legislative deadlines this [year to secure billions of euros in European funds and these might be missed without a fully functioning government](https://www.financedigest.com/2016-must-be-the-year-of-board-level-transparency-and-good-governance.html "2016 must be the year of board level transparency and good governance") in place. However, the League and its ally Brothers of Italy, which [leads in opinion polls](https://www.financedigest.com/frances-macron-consolidates-poll-lead-after-tv-clash.html "France’s Macron consolidates poll lead after TV clash"), are calling for elections if Draghi goes, and Foreign Minister Luigi Di Maio, who left 5-Star last month, said on Friday there would be no alternative. NEW PREMIER In an effort to avoid early elections and financial turmoil, Mattarella could try to put together another unity administration calling in an institutional figure to [lead it until elections](https://www.financedigest.com/centre-right-gerb-party-leads-in-bulgaria-election-partial-results.html "Centre-right GERB party leads in Bulgaria election -partial results"), which are due in the first half of 2023. However, it is hard to imagine the various components of Draghi’s [government rallying around a new figure](https://www.financedigest.com/adnami-to-receive-six-figure-sum-of-investment-from-danish-government-in-recognition-of-its-pioneering-technology-and-strategy.html "Adnami to receive six-figure sum of investment from Danish government in recognition of its pioneering technology and strategy"). (Reporting By Gavin Jones and Angelo Amante, writing by Gavin Jones; Editing by Kim Coghill) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---