Conte’s Coalition Boosted in Key Vote

Channel: Bloomberg Politics
Published: 01/27/2020

Description
Jan.27 -- Matteo Salvini suffered a stinging defeat in a key regional vote. It provides a much needed boost to Prime Minister Giuseppe Conte’s fragile government. Salvini had hoped that taking Emilia-Romagna would deal a fatal blow to Conte, forcing early national elections that his League Party wo



Transcript
Where does this leave the italian coalition good morning my well? This was a hugely watched regional election here in emilia-romagna. It was almost seen as a vote of confidence on the italian coalition and remember that coalition was never voted into office. Now going into the vote, slovenia was all over the region. Who really was the main voice? He really said: look if we win, the election of the ...
league manages to flip a mini at romagna, which has always been a left stronghold for the center-left. That means there should be a snap election, and that means it's. The aunt of the coalition. Clearly yesterday was a tight election, but it did not materialize. You could argue back in rome. It'S really is good news for giuseppe condom the rest of the italian coalition, which should really come under pressure. This was really a crucial crucial election. There was the national narrative that was built into this. You could argue today the idea that perhaps there is an election going to happen soon.

Well, that is off the table and the coalition, although still very fragile, stays on, and i would also say mad that it's interesting, that the balance of power in the coalition also shifted. You had a terrible night for the five-star, really awful resaw that says 5 %, and then the pd did very well. So that is also interesting to watch just how the relationship in the balance of power now is shifting in favor of the more traditional left - and i guess we're a good morning. Even if the votes in the region was tight, it does have implications for markets. We'Re already seeing that a cloud being lifted, perhaps from some italian assets, exactly you see on the reaction and the market specially when you look at the bond yields that are already dropping, and that is because there was that jitter that nervousness. I was already priced in in to be tepees last week. The idea, perhaps that matteo salvini who's had a very difficult relationship with brussels, with the euro with the european union has floated the idea that perhaps the euro does not work for italy, a deaths. It does seem to be for the time being off the table. There is no return, there is no salvini back in front-line politics and the coalition stays on, but i do have to say anna. The idea here is that politics are still very shaky, very fragile and you are seeing that balance of power shift and the coalition where the pd says. Now we really do have the upper hand, it's not about the five star.


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