Italy chaos: Recovery fund debate in limbo

italy chaos recovery fund debate in limbo

Italian Prime Minister Guiseppe Conte’s draft recovery plan based on €209 billion ($254 billion) to come from the EU’s post-pandemic recovery fund and meant to crank up the ailing southern European economy has led to the nationplunging into political chaos as two ministers from Matteo Renzi’s Italia Viva party quit on Wednesday to show their opposition to Conte’s plan.

In September 2019, the populist Five Star Movement (the largest ruling party), the Social Democrats (PD) and the smaller parties Italia Viva and Liberi e Uguali formed a coalition, which had been viewed as a makeshift solution rather than a team of shared values. 

Conte’s ideas on how to spend the EU money were not accepted by the head of the Italia Viva party, Matteo Renzi, who had repeatedly warned he would sink the coalition government, if not enough money were pumped into innovative projects.

Although Conte said he had made a number of concessions to placate Renzi, the latter raised other issues that he was not content with, including Conte’s unwillingness to apply for a loan from the eurozone’s bailout fund, the European Stability Mechanism (ESM) to strenghten the nation’s health service. 

Moreover, Italy’s head of government wanted a council of unelected executives — rather than lawmakers — to decide on …

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