Italy: Further political upheaval looms

The resignation of the two ministers from the Italia Viva party, founded by Matteo Renzi in September 2019, and the possible withdrawal of its parliamentary support for the current government have given rise to a nother political crisis. With no guarantee of a governing majority, Giuseppe Conte will have little other choice than to resign, putting the fate of the country back in the hands of the president of the republic. The president will then have to choose between 1) reappointing Conte, 2) naming a replacement, or 3) bringing forward elections of both houses. C hanges in the BTP-Bund spread will largely depend on this choice .