Italy: New elections in H2 this year cannot be ruled out – Danske Bank

Following the defeat of the Democratic Party (DP) at the Italian election, former Italian Prime Minister Matteo Renzi has resigned as DP leader, points out the research team at Danske Bank.

Key Quotes

“Meanwhile, Renzi will head the party’s talks in the attempt to create a new government and has re-emphasised that the DP will not enter a coalition with either the League or the Five Star – the two anti-establishment parties that stand as winners following Sunday’s vote.”

“Going forward, the negotiations remain messy and the next important date will be 23 March when both houses of Parliament are due to come together for the first time. In our view, it remains unlikely that we will have an Italian government in place before May or June and at this stage we cannot rule out new elections in H2 this year.”