Italy’s ruling League party main economic spokesman, Claudio Borghi, has made clear that his party wants to pursue an ambitious tax cuts program, even if that means a surging deficit. “We need to pursue a tax cut and it is obvious that a small proportion will be funded with the deficit,” Borghi told RAI public TV on Monday.
The League is leading in the polls, has withdrawn its confidence in the 14-months coalition government, and is calling for snap elections as soon as possible.
The League’s leader, Matteo Salvini, filed a no-confidence motion in Premier Antonio Conte on August 9. The leader of the senior coalition partner, the 5 Star Movement (MS5), accuses
Salvini of wanting to “cash in” on high polling, which is near 38%, just under the 40% threshold that allows a party to form a single-party government. MS5 support has dropped from 33% in March 2018 to 16% now.
President Sergio Mattarella is by definition the arbiter of the government crisis, as the government is unlikely to survive a no-confidence motion. He can now appoint a caretaking government or allow for the formation of a new government by the MS5 and the centre-left opposition Partito Democratico (PD).
While former prime minister Matteo Renzi favours a new coalition that will approve a budget before Italy goes to the polls, PD’s leader Nicola Zingaretti has yet to commit but the left-leaning press suggests that he is not interested, citing sources within his office. The leader of MS5, Luigi Di Maio, is also avoiding any public statement on the subject.
