Issue link: https://maltatoday.uberflip.com/i/987872
maltatoday | WEDNESDAY • 30 MAY 2018 5 NEWS JAMES DEBONO Why does Italy still not have a government? The election produced a hung parliament with no workable majority for any of the three con- tenders. The centre right, which included the Lega Nord and For- za Italia, fell short of a parliamen- tary majority despite winning a relative majority of votes. The 5 Star Movement emerged as the largest party but did not have any coalition allies with whom to form a government. Neither did the defeated Democratic Party which expressed no inter- est in teaming up with the 5 Star Movement. To break the im- passe the Lega Nord broke ranks with Forza Italia and reached an agreement with the 5 Star Move- ment on a government led by the technocrat Giuseppe Conte. President Sergio Mattarella made no objection to the new government but objected to the appointment of Carlo Savona as Finance Minister. Who is Paolo Savona? The 81-year-old Savona has a career in finance and economics that stretches back to the 1960s, and was Minister of Trade and Industry during fellow banker Carlo Ciampi's short-lived tech- nical government in the early 1990s. In his latest book, 'Like a Night- mare and a Dream', Savona calls the single currency a "German cage", and it was his hostility to the euro which led President Sergio Mattarella to object to his appointment. He also called on Italy "to pre- pare a plan B to get out of the eu- ro if necessary" adding that "the other alternative is to end up like Greece." Why was Savona turned down by Mattarella? Mattarella accepted the entire cabinet proposed by the desig- nate PM with the exception of Savona as Economy Minister. The Italian President insists that he wanted a strong political rep- resentative of the new majority in this strategic role. He even of- fered the Economy portfolio to the Lega Nord's deputy leader Carlo Giorgetti. But underlying the President's reservations on Savona was the risk of sending the wrong mes- sages to Italy's European part- ners and the market. Mattarella clearly indicated that he did not want someone "supporting a po- sition which would provoke the exit of Italy from the Eurozone". The President warned that un- certainty of the new govern- ment's position on the Euro was endangering the savings of the Italian people. "It is my duty in the constitutional role assigned to me in appointing ministers, to protect the savings of the Italian people." Does the Italian President have the power to refuse a minister? Article 92 of the Italian con- stitution states clearly that the President of the Republic nomi- nates the Prime Minister and "on his/her advice" the ministers. Although having very limited powers, whenever elections fail to produce clear majorities, Ital- ian presidents have a key role in the formation of new govern- ments. The current President Sergio Mattarella refused to ap- point a finance minister, even though he was the choice of the prime minister-designate and had the backing of the majority of parliamentarians. It is not the first time that an Italian president has refused to appoint a minister supported by the majority of lawmakers – it has happened at least three times before, most notoriously with Silvio Berlusconi. After winning elections in 1994, the media magnate, who was already in the crosshairs of the Italian justice system, pro- posed to president Oscar Luigi Scalfaro to nominate his person- al lawyer Cesare Previti as Min- ister of Justice. Scalfaro refused and Berlusconi accepted defeat. In 2001 Carlo Azeglio Ciampi had also refused to appoint Rob- erto Maroni as Justice Minister due to pending court proceed- ings related to a police raid on the Lega's head quarters. Instead Maroni was transferred to La- bour Minister. Why is the 5 Star Movement calling for Matarella's impeachment? This time, the 5 Star Move- ment has refused to accept that the country's head of state is sim- ply exercising his prerogative, instead denouncing what they claim is meddling by Brussels or financial lobbyists. It is on this basis that Di Maio has raised the possibility of im- peaching Mattarella for treason – something that would require an absolute majority in both chambers of parliament in a joint session. Matteo Salvini has been more cautious; limiting himself to say- ing that the President carried great political responsibility. Although constitutionally cor- rect, the President's veto to a minister vindicated the populist narrative that market forces are subverting democracy. During the financial crisis in 2011, when global markets turned on Italy, President Gior- gio Napolitano supported a move to oust Silvio Berlusconi and replace him with former European Commissioner Mario Monti. Monti became PM after gaining a majority in the house following a split in Forza Italia. The collapse of the Berlusconi government came in the wake of a series of the Bunga Bunga scan- dal. Berlusconi denounced what he said was a state coup and de- manded early elections. Instead a new government was formed. What is likely to happen next? Mattarella has nominated former IMF official Carlo Cat- tarelli as designate PM but he is unlikely to win a majority of parliament. Silvio Berlusconi's Forza Italia is also opposing his nomination. Berlusconi who can now con- test elections after the courts lifted a ban on his participation in elections has invited Salvini to return to the centre-right coali- tion, which already governs most of the northern regions of Italy. Elections will probably take place in September. The major political unknown is whether Matteo Salvini will prefer Berlu- soni or Di Maio as his coalition partner. The 5 Star Movement emerged weakened from the latest events having failed to give Italy a sta- ble government after becom- ing the country largest party. Di Maio may have also alienated segments of its left-leaning and southern electorate by court- ing the Lega Nord. But his only path to power remains that of re- proposing the coalition with the Lega Nord in a general election. In the absence of this the move- ment is destined to remain in Opposition. On the other hand Matteo Salvini has emerged stronger than ever. He now has two op- tions; either to ally himself with the 5 Star Movement in a popu- list alliance – which appeals to popular indignation against the President's veto – or he may re- turn to the centre right and thus stand a strong chance of becom- ing Prime Minister as the leader of a more homogenous alliance with whom the Lega governs Italy's most prosperous regions. Having two options makes Sal- vini stronger in his dealings with both the Five Stars and Forza Italia. But having outsmarted Di Maio, will Salvini risk being out- smarted by Berlusconi? Parliamentary Secretariat for European Funds and Social Dialogue Triq il-Kukkanja, Santa Venera SVR 1411 TELEPHONE: 00356 2200 1170 ANNOUNCEMENT Business Enhance ERDF Grant Schemes Open Rolling Calls – Cut-off dates Operational Programme I – Cohesion Policy 2014-2020 Fostering a competitive and sustainable economy to meet our challenges The Measures and Support Division within the Ministry for European Affairs and Equality, designated by the Managing Authority for Cohesion Policy 2014-2020 as the Intermediate Body responsible for administering aid schemes for enterprises under the European Regional Development Fund (ERDF) 2014 – 2020, would like to announce further cut-off dates for 2018 for the submission of applications under the Business Enhance ERDF Grant Schemes intiative. The cut-off dates are set at noon of the dates listed in the table below: Call 1 - Business Enhance RD&I Grant Scheme - Measure 1 Feasibility Studies 28 June 31 August Call 2 - Business Enhance RD&I Grant Scheme - Measure 2 Research & Development Projects 28 June 31 August Call 3 - Business Enhance RD&I Grant Scheme - Measure 3 Investment in Research Infrastructures 28 June 31 August Call 4 - Business Enhance RD&I Grant Scheme - Measure 4 Process Innovation 28 June 31 August Call 1 - e-Commerce Grant Scheme 28 June 31 August Call 3 - SME Growth Grant Scheme 31 July Call 3 - Start-up Investment Grant Scheme 31 July Call 1 - SME Diversification and Innovation Grant Scheme 31 July Call 1 - SME Internationalisation Grant Scheme 28 June 31 July 31 August Call 1 - SME Consultancy Services Grant Scheme 28 June 31 July 31 August Information sessions will be organised for prospective applicants periodically. Dates and venues will be notified accordingly. Further information on these calls including the respective Guidance Notes and the Guidelines for Implementation, as well as on the information sessions may be obtained from https://businessenhance.gov.mt. MINISTERU GĦALL-AFFARIJIET EWROPEJ U L-UGWALJANZA SEGRETARJAT PARLAMENTARI GĦALL-FONDI EWROPEJ U DJALOGU SOĊJALI MALTA MINISTRY FOR EUROPEAN AFFAIRS AND EQUALITY PARLIAMENTARY SECRETARIAT FOR EUROPEAN FUNDS AND SOCIAL DIALOGUE Measures and Support Division Why is Italy in crisis again? Italy is on the brink of another election after the Italian President has not accepted one of the ministers proposed by the designate Prime Minister Giuseppe Conte, backed by the populist 5 Star Movement and La Lega