Naming of technocratic government plunges Italy into crisis of class rule
30 May 2018
A mounting financial and political crisis is spreading across Europe after Italian President Sergio Mattarella named a technocratic government on Monday, effectively nullifying the March 2018 elections. Financial markets are panicking and protests are being called, as bitter divisions inside the Italian bourgeoisie, particularly over the euro currency, erupt to the surface.
Initially, financial markets sent Italian interest rates lower on Monday, marking their approval of Mattarella’s decision not to allow the right-wing populist Five Star Movement (M5S) and the far-right Lega party to form a government. Yesterday, however, financial markets continued to push interest rates on Italian debt higher, to 1.937 percent for the first time since 2013, and sent the euro falling to below $1.16. It is ever clearer that deep conflicts in the Italian and the whole European ruling class that underlay the euro crisis following the 2008 Wall Street crash have not been resolved.
The market turmoil spread to the United States, where the Dow Jones Industrial Average fell 391 points, or 1.58 percent.
On Monday night, designated Prime Minister Carlo Cottarelli indicated that he would oversee a brief technocratic government pledged to austerity and the euro. He said, “My government will be neutral, will ensure prudent management of the state budget and will treat as essential Italy’s participation in the euro.” He also indicated that he would nominate non-partisan state officials as ministers and ask them to sign a pledge not to seek election in the next parliamentary elections.
On Tuesday, however, markets and European bank stocks fell, as it became clearer that Italy is set for a…