Rome, Italy’s President Sergio Mattarella on Monday asked economist and former International Monetary Fund director Carlo Cottarelli to form a government after populist nominee premier Giuseppe Conte give up his bid.
Cottarelli, 63, a former IMF executive director known as “Mr Scissors” for making cuts to public spending in Italy, will try to form a cabinet of unelected technocrats. He will however struggle to get approval for his government from the parliament where populist forces have a majority in both houses.
The pro-austerity economist pledged to “do my utmost” to form a technocrat government after accepting Sergio Mattarella’s invitation.
“I will do my utmost. The President has asked me to present to parliament a programme that will lead the country to elections,” Cottarelli told reporters, adding he planned to “rapidly” put forward a list of ministers for Mattarella’s endorsement.
“I will submit to parliament a programme that – if it wins a confidence vote – will include the 2019 budget. In this case the parliament will be dissolved and elections will take place in early 2019,” he said.
If it doesn’t, “the government will resign immediately and its chief task will be to administer fresh polls straight after the month of August,” he said.
Cottarelli’s planned government will be “wholly neutral” and he will not stand as a candidate in the next elections, he said.
“I will demand the same pledge from all ministers in the government,” he added.
Cottarelli’s government will manage Italy’s public accounts prudently, he vowed.
“Despite the increased market tensions in recent days, the Italian economy is still growing and state finances are under control,” he said.
Cottarelli was tapped by the pro-European Mattarella on Monday after Conte gave up his bid to form a cabinet when Mattarella rejected his choice of a prominent Eurosceptic as Economy Minister.
Mattarella said he could not appoint 81-year-old Paolo Savona to the post, citing concern from investors at home and abroad.
Italy’s anti-establishment Five Star Movement and the anti-migrant League – the biggest winners from Italy’s inconclusive March 4 vote – are furious at Mattarella’s veto of Savona and say they will block Cottarelli’s nomination in parliament.
Conte, a law professor and political novice was their pick for Premier and the far-right League party’s leader Matteo Salvini insisted on Savona’s appointment.
Mattarella’s move could trigger constitutional crisis, according to some observers. Italy is now expected to go to the polls again in autumn.
Meanwhile, Cottarelli also underlined the importance of dialogue between the European Union and Italy – a founder member – and of Italy’s continued membership of the euro.
“Dialogue with the European Union to defend our interests is essential and we can do better than in the past.
“But there must constructive dialogue that fully recognises that as a founder of the EU, our role remains essential as does our participation in the euro,” he told reporters after meeting Matterella.
