Another European Central Bank (ECB) Coup in Italy

Mattarella’s own speech is the smoking gun. It was a mixture of beer talk and fake news delivered as a terrorist message. Here are the relevant passages:

“I shared and accepted all proposals for the ministers, except the Economy Minister. The designation of the Economy Minister always constitutes an immediate message, either a confidence or a warning message for economic and financial operators.

“I asked for that ministry, the indication of a prominent political representative of the majority, coherent with the program agreement. A representative that—beyond personal esteem and consideration—is not seen as supporting an often-manifested line that could provoke, probably or even inevitably, Italy’s exit from the euro....

“The uncertainty on our position in the euro has alarmed Italian and foreign investors and savers who have invested in our sovereign bonds and in our companies. The daily increase of the spread increases our government debt and reduces the possibilities for the government to spend for new social interventions. Losses on the stock market, day after day, are destroying resources and savings of our companies and of those who have invested in them, and outline concrete risks for the savings of our citizens and of Italian families.

“We must also watch the threat of strong increases of mortgage interest and for corporate financing. Many of us remember when, before the European Monetary Union, bank interest rates were almost 20%.

“It is my duty, in performing the Constitutional task of appointing ministers, to care for protection of Italian savings.

“...Membership in the euro is a choice of fundamental importance for the future of our country and our youth: If one wants to discuss it, he must do it openly and in depth, also because it was not an issue in the election campaign.”

Mattarella blatantly ignored a statement previously released by economist Paolo Savona and published by scenarieconomici.it, in which Savona made it clear that he would stick to the coalition program, which does not challenge Italy’s membership in the euro or in the EU.

This shows how terrified the European elites are; and you can expect that they will do anything to keep their power.


Italian President Snubs Voters, Names Ex-IMF Official as Prime Minister-Designate

May 28, 2018 (EIRNS)—After Italian President Sergio Mattarella last night rejected the ministerial slate of the M5S and Lega coalition, singling out senior economist Paolo Savona to attack as unacceptable to “world finance,” Mattarella then mandated an ex-IMF official, Carlo Cottarelli, as his designate for prime minister, to provide a proposed cabinet. Procedurally, this must go to the Parliament for approval within a few days, which will not occur. New elections loom, which could be in autumn.

Cottarelli, nicknamed “Lurch” for his similarity to the character from the Addams Family TV series, has been an IMF official. His training includes the London School of Economics. Cottarelli led a review of Italian public sector spending under the Letta (PD) government. His suggestions to cut 60,000 jobs from the public sector were too much even for Letta’s successor Matteo Renzi, who fired him. Cottarelli became known as “Mr. Scissors.” Recently he has been the source providing a figure of over €100 billion for the cost (and therefore new debt) of the M5S-Lega program.

Cottarelli’s cabinet will be voted down by Parliament and, therefore, will take care of preparing early elections, which could be held in September-October. Political parties are already positioning for the campaign. In this context, the Lega is credited with over 30% of the vote by some polls. It is not clear whether the Lega will choose the same allies as in the last elections. There might be surprises.

The M5S and Fratelli d’Italia (FdI) have asked for an impeachment procedure against Mattarella. Lega head Matteo Salvini warned against being impulsive. Indeed, an impeachment procedure would take up a long time in Parliament and this would stretch the life of the technocratic government.

A Cottarelli government can do some damage, including approving decisions for the next EU budget at the June EU summit.