Italy's Renzi boycotts cabinet meeting, challenges PM to find a new government
ROME - Former Prime Minister Matteo Renzi said Italy’s government could collapse after his small party boycotted a cabinet meeting over a contested justice reform and the prime minister suggested he was ready to resign.
While opinion polls give his party only about 4% of votes, its support is crucial in parliament and particularly in the upper-house Senate, where the government majority is very thin. If Conte “wants to set up a new ruling coalition we won’t oppose it”, Renzi said on Thursday in a videomessage posted on Facebook.Renzi’s party had threatened to present a no-confidence motion against justice Minister Alfonso Bonafede, a prominent member of the 5-Star movement.
Time limits for prosecutions have been at the center of fierce political debate for years, with magistrates saying it is all but impossible to reach a definitive verdict for a multitude of financial crimes within the prescribed time frame. However, the market did not react to the disputes within the coalition. Italian bond markets were little changed in early trade, with the spread between Italian BTPs and safer German Bunds at 134 basis points from 132 on Thursday.
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