That’s all they missed! At a time of war in Ukraine, an energy crisis and rising prices, Mario Draghi’s departure comes at the worst possible time. For the past few days, Europeans have been watching with concern what is happening on the Italian political stage and hoping that the President of the Italian Council will remain in office. But the left-right National Union founded by Mario Draghi a year and a half ago has collapsed. Disavowed by three parties in his coalition, the former head of the ECB had no choice but to resign. At the same time, the Italian President announced the dissolution of the Senate and the Chamber of Deputies, which initiated the holding of early parliamentary elections for September 25.
Until then, the government is required to regulate the day-to-day running of a country reeling from a major political crisis, plunging the European Union into a period of great turmoil and raising the specter of a new debt crisis in the euro area. Because Italy, the third economy in the European Union, has a public debt of 150% of its GDP. This makes it the weak link in the eurozone. The EU Economic Commissioner Paolo Gentiloni reacted immediately by denouncing “theare irresponsible” who dropped Draghi at risk”cause a storm”. The European Central Bank has decided to raise its key interest rate by 0.50 points for the first time since 2011.
In this context, the financial markets are closely monitoring the situation, and they are not the only ones. Far-right parties like the Fratelli d’Italia or the Lega, which are said to be close to Russia, could have a place of honor in next autumn’s elections. A scenario that would not displease Vladimir Putin, who continues to blow hot and cold. Russia restarted the Nord Stream gas pipeline on Thursday, which connects the Siberian gas fields directly with northern Germany, and has to sign an agreement on Ukrainian grain exports in Istanbul this Friday. But at the same time, the bombing in Ukraine continues, and the head of Russia’s diplomacy reiterated on Wednesday that Moscow’s military targets are no longer limited to the east of the country, but are also affected.a number of other territories”. The next day, Sergei Lavrov spoke to his Hungarian counterpart, who was visiting Moscow to try to increase its supply of Russian gas despite European sanctions.
So why is the political crisis in Italy worrying Europeans? Do we have to fear a new sovereign debt crisis in the euro zone? Why did the ECB raise interest rates? And what are the “other areas” now in the sights of Russia?
– Christophe Barbier, starpolitical columnist and editorial consultant – Franc-Tireur
– Francois Beaudonnet, jJournalist specializing in European issues – France Télévision
– Anthony Bellanger, SternColumnist, specialist in international issues – France Inter
– Georgina Wright, dDirector of the Europe Program – Institut Montaigne