Italy Government Approved: Crisis Over? Hardly! Get Popcorn, Gold

The FT says the political crisis is all but over. I suggest otherwise.

The Financial Times reports Italy’s President Approves Populist Rome Government.

The FT's subtitle is quite amusing. "Accord all but ends political crisis that has gripped country and spooked investors."

What the hell is the FT smoking?

Juncker Foot In Mouth Disease

Politico reports Juncker Prompts Italian Ire with ‘More Work’ Jibe.

The European Parliament’s Italian president demanded on Thursday that Commission chief Jean-Claude Juncker deny or retract remarks that Italians should do “more work.”

“Italians have to take care of the poor regions of Italy. That means more work; less corruption; seriousness,” Juncker was quoted as saying by The Guardian newspaper, among others, at a question-and-answer session in Brussels.

European Parliament President Antonio Tajani shot back on Twitter that Juncker distance himself from the comments.

“I ask European Commission President Jean-Claude Juncker to immediately deny the comments attributed to him, because if they are true they would be unacceptable,” tweeted Tajani.

Juncker’s tweet did prompt a storm of Twitter responses, some of which blamed the offending remarks on alcohol or ignorance of Italian affairs.

Commission spokesperson Mina Andreeva later tweeted that “The words attributed to President Juncker on Italy were taken out of context.”

Finalized Deal

  • Giuseppe Conte is back in the role as Prime Minister. He previously gave up a mandate to form a government last weekend when president Sergio Mattarella refused to seat Eurosceptic 81-year-old Paolo Savona as economy minister.
  • Five Star leader Luigi Di Maio will have a combined role of Deputy Prime minister and Work and Development Secretary.
  • Lega leader Matteo Salvini will have a combined role of Deputy Prime minister and interior minister in charge of immigration.
  • Paolo Savona will become European affairs minister.
  • Giovanni Tria, a professor of political economy at Tor Vergata University in Rome, will be the new finance minister
  • Enzo Moavero Milanesi, an aide to former prime minister Mario Monti, will be the new foreign minister.

Get Popcorn and Gold

Enjoy the forthcoming amusement. Budget battles with the EU rate to be spectacular.

Be sure to have enough popcorn on hand. I also recommend some gold when Europe eventually blows sky high over Italy.

Mike "Mish" Shedlock

Comments (16)
No. 1-16
Rengaw
Rengaw

That's right, if doomsday for EU is not today, then it will be tomorrow. If not tomorrow, then the day after tomorrow...

TheWindowCleaner
TheWindowCleaner

Pain and chaos....or grace and freedom? It's up to us.

AWC
AWC

ECB has all weekend to institute a shiny new fix for Italy. By Monday all will be well.

lol
lol

italy is now under the ECB umbrella,which means central banks as was with Greece and eventually Spain is throw trillions of (freshly printed)euro's at this to buy moar time!

Greggg
Greggg

Drunker with Juncker

FloydVanPeter
FloydVanPeter

They bent and twisted Greece leadership like a pretzel. All it takes it finding the soft-angle of the new Italian leadership. And it will give in to the pressure, too.

Italy might be a larger problem. But, there is so much more at stake.

Greggg
Greggg

caradoc-again
caradoc-again

Those at the heart of the EU are well versed in these tactics having learnt a few tricks from the 20-40's German experience/regime. They will be working over time to split, weaken and spread fear in Italy.

caradoc-again
caradoc-again

Juncker has just said what the paymasters really think. I see no reason for anyone to be shocked. The old north-south divide is alive and well, EU solidarity only goes so far, especially when Fritz thinks Giuseppe is undeserving. Wake-up Italy, get off your knees, prioritise your own future above the EU dream state. Truth is it's everyone for themselves as it has always been. The "solidarity" is a veneer. Underneath the old rules still apply and all the EU cares about is Franco-German interests. Italy is not Germany nor Holland and never will be.

Alessandro
Alessandro

Yes, if push comes to shove the EU will try a Greece on Italy, if the latter tries to challenge EU rules by (bigger) deficit spending. However, this time Italy has a “Plan B” as was widely reported and the outcome of the arm-wrestling is far from clear. I have the feeling that in Germany there is very little sympathy for the Italian position. I don’t blame them as the strategy so far of the entire Italian establishment – Industry association included – is aimed at mutualizing debt. i.e. Germany eventually to guarantee for Italian public debt. This time however there is a “Plan B”, that is a Quitaly.

chris_m
chris_m

whatever is going on behind the scenes regarding Italian establishment and the rest of the EU, i feel that the overall political environment within the EU has changed towards Euroscepticism. so who does or doesnt get appointed as Finance Minister is a bit of a moot point. everybody is eurosceptic to one degree or another now. i

chris_m
chris_m
(deleted message)

it seems a pity that it took British voters to show everybody else the way forward towards Euroscepticism. (not that Brexit is a done deal, however.....i feel that that particular story has still further to run) you always get the funny feeling that some other country will get to leave the EU (or its close relation, the Euro) before the UK.)

caradoc-again
caradoc-again

Rajoy has gone from Spain. Socialist Sanchez, at least for now as PM.

caradoc-again
caradoc-again

I'm expecting the EU to curtail democracy in some way. If they can't stop populists getting in, put barriers up.to.who can run or what can be voted for etc. They'll do anything they can to protect the plan.

JimmyInMinny
JimmyInMinny

One day soon enough the people of one (or more) of these nations who dont want to be ruled by unelected bureaucrats in Brussels will simply go on a massive national strike until their nation's puppet government (and economy as well) collapse. This is what its going to take. Until this revolution happens, the EU will simply ignore the will of these peoples and inflict deflation on them as punishment. Ask Greece.