Matteo Renzi’s chances of recapturing the Italian prime minister’s office this year may be slipping away. His push for early elections has triggered so much dissent within his own party that he may have to wait until next year for a comeback attempt. The ex-premier’s Democratic Party, the biggest force in parliament, holds a meeting of its leaders in Rome on Monday. They’ll decide whether to seek national elections this year, or wait until a vote scheduled for early 2018. Should Renzi prevail on Monday, there is the prospect of yet another European election alongside Germany, France and the Netherlands this year. The anti-establishment Five Star Movement, which wants a referendum on Italy’s membership of the euro area, is keen to exploit its standing in opinion polls that show it neck and neck with the Democratic Party.
The uncertainty helped widen the yield spread between Italy’s 10-year bonds and their German equivalent last week to the most since February 2014 amid the political turmoil that thrust Renzi into the premier’s post. Markets have also been worried about French presidential candidate Marine Le Pen’s proposal to leave the euro area, a move that would rattle France’s neighbor to the south.
Stormy talks are likely on Monday. A dissident minority and influential factions oppose Renzi’s drive for a new electoral law and a vote by mid-June. They say the government of Prime Minister Paolo Gentiloni, 62, a soft-spoken former diplomat and fellow party member, should stay in power until the next scheduled elections.
Full Article: Italy Intrigue May Halt Renzi’s Comeback Bid – Bloomberg.