by Mish

Today Sergio Mattarella, Italy’s president, appointed Paolo Gentiloni, the 4th Consecutive Technocrat as the new prime minister.

Paolo Gentiloni, Italy’s foreign minister, has been chosen to replace Matteo Renzi as prime minister amid signs of a quick solution to the political crisis that has convulsed the eurozone’s third-largest economy over the past week.

After three days of consultations with parliamentary leaders, Sergio Mattarella, Italy’s president, on Sunday summoned Mr Gentiloni to the presidential palace in central Rome and asked him to form a government. Mr Gentiloni accepted in a brief statement.

The urgency of installing a new government increased on Friday when the European Central Bank rejected a request from Monte dei Paschi di Siena, the country’s third-largest bank, for extra time to raise capital among private investors.

The ECB’s decision has increased the chances that the Italian government may have to use state funds to rescue one of its most prized financial institutions, which has been dogged by non-performing loans. The board of MPS was expected to meet on Sunday and make a statement.

Mr Renzi, whose government lasted nearly three years, wrote on his Facebook page on Sunday that he offered Mr Gentiloni “best wishes and all my support” in office. But he also made clear he would not give up on his own political ambitions.

“To the millions of Italians who want a future of ideas and hope for our country I can say that we will never tire of trying again and moving forward,” he said.

There have been widespread calls from all political parties to move to early elections, probably in the second quarter of 2017. Mr Mattarella made it clear that elections could be held only if the two separate electoral laws for the lower and upper houses of parliament were “harmonised”, calling it “indispensable” for a vote.

At the moment, lawmakers in the upper chamber are elected on a proportional basis, while in the lower chamber they would be elected in a system that gives bonus seats and a comfortable absolute majority to the winning party.

Renzi Not Vanquished Yet

Renzi’s ploy to resign wasn’t really an honest one. He wants his job back and will run again in the next election.

He had the gall in the wake of his much wider that expected 59-41% defeat to say 41% makes his Democratic Party the largest party in the country. Polls show otherwise.

The risk for the Democratic Party is the party splinters into pro-Renzi and anti-Renzi factions. Should that happen, it will be to the benefit of Beppe Grillo’s Five Star Movement (M5S).

Mike “Mish” Shedlock

Revenge: Former Italian Prime Minister Seeks to Destroy the Euro

Former Italian prime minister Silvio Berlusconi resigned in 2011 in the midst of a eurozone crisis after the Italian parliament voted for austerity measures. He blames then ECB president Jean-Claude Trichet for his ouster.

Italy's Gov't Collapses, Prime Minister Resigns: What's it Mean? What's Next?

Italian Prime Minister Giuseppe Conte announced his resignation in the Italian Senate ending the coalition government.

Italy’s New Prime Minister Puppet: Time to "Ringfence" Italy? MMT to the Rescue?

Giuseppe Conte is slated to become Italy's next prime minister. But he will not be in charge of anything.

Iceland’s Prime Minister in Hiding, Says Yesterday’s Resignation “Temporary”; Rise of the “Pirates”

Iceland’s prime minister resigned yesterday following the “Panama Papers” investment scandal that implicated the heads of government of five countries.

Italy’s Government on Verge of collapse: Next Trumpian Domino to Fall?

Italy’s government is on the verge of collapse. Prime minister Matteo Renzi reiterated his position just yesterday, he will not hang on if a referendum he seeks does not pass.

UK Prime Minister Attacks QE, Irresponsible Capitalism, Tax-Dodging Companies

UK prime minister Theresa May is on a roll, in more than one direction. She wants the bank of England to stop QE; she wants to put an end to “irresponsible capitalism”; she chastised CEO pay; and she is after tax dodging companies. May is also firmly behind Brexit and a supporter of government spy

Raw Politics: Hungary Prime Minister Attacks Juncker and Soros in Billboard Ad

Hungarian Prime Minister Victor Orbán attacked EC President Jean Claude Jucker and George Soros in a billboard ad.

Euro Reversal: Major Top for US Dollar? What’s Going On?

In response to the Italian Referendum which caused prime minister Matteo Renzi to resign, the Euro/USD took a dive from 1.0672 to as low as 1.0506.

Trump Praises Boris Johnson, UK's New Prime Minister, as Donald Trump of Britain

Trump and Newt Gingrich are heaping praise on Boris Johnson, the new Prime Minister of Great Britain.