>> Early elections now look inevitable in Italy. Efforts to form a coalition government between two anti-establishment parties collapsed after a rare move by the country's President. Sergio Mattarella rejected demands to name a Eurosceptic to the economy minister role, citing fears he might have pushed Italy out of the Eurozone.
Following the standoff, 5-Star leader, Luigi De Mayo called on Parliament to impeach the mild mannered Mattarella, and league chief Mateo Salveney threatened mass protests unless snap elections were called. Shortly afterwards, Mattarella summoned former senior international monetary fund official, Carlo Cottarelli to his office where he tasked him to try and form a new government.
Reuters, Steve Scherer.>> However, without the support of the 5-Star movement and the league, that will be very difficult, if not, not impossible. So he's unlikely to ever be able to seat a government that wins a confidence vote in Parliament. That means it'll be a government with limited powers that will take Italy toward another election.
>> The Eurozone's third largest economy has been without a government since elections in March, because no political group can form a majority.>>
> Cottarelli says, if needed, fresh elections will be held after August, most likely at the beginning of next year. That prospect has rattled financial markets, with investors now fearing what a future vote could bring.
>> So the real risk is now that Italy will hold an election that essentially becomes a referendum on its membership in the Euro area.>> Already Italian politicians are maneuvering for power after any caretaker administration. A 5-Star source said the movement is considering campaigning together with the league if the nation goes back to the polls.