On top of Italy’s huge national debt problem, the dire state of the nation’s economy and zero signs that Italy’s Prime Minister Matteo Renzi will change his ‘spin, delay, and pray’ approach to running Italy, there are indications that all is not well within Renzi’s cabinet.
Rumours of now former Renzi right-hand man Graziano Delrio wanting out are growing stronger by the day. The cause of Delrio’s discontent, according to Italian newspaper Il Fatto Quotidiano, is his worry that Italy probably cannot afford the policies Prime Minister Renzi wants to pursue in the hope of promoting economic recovery. Reportedly, Delrio fears that Italy’s official accountants won’t let Renzi do what he wants simply because the money is not there.
The Unhappy Economy Minister Hearsay
In addition to dissatisfied Delrio, other rumours floating around indicate that Renzi’s economy minister Pier Carlo Padoan is not happy either.
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Publicly, Padoan has been trying to put a brave face on Italy’s gloomy situation and recently told the BBC that in two years time Italy would be well on the road to recovery. Before those two years are up, the problem of Italy’s massive national debt problem may explode. Economy minister Padoan will be aware of this and the consequences of Italy’s national debt becoming unsustainable. He too, according to the rumours, is not happy with premier Renzi’s approach to solving Italy’s troubles.
The worry is that these rumours of government instability could cause Italian Bond German Bund spread may well rise too. This would not be good news for Italy as it may well render the nation’s national debt level unsustainable.
OECD man Padoan’s presence in Renzi’s government has helped raise faith at international level that Italy will sort its problems out. If Delrio exits, then Padoan may follow. If that happens, worries about the direction Italy’s doddering economy will take will no doubt grow.
Rumours are only rumours though. Let’s hope they don’t turn out to be anything more.