Having plunged Italy and the EU into crisis by blocking the formation of a Eurosceptic coalition government, President Sergio Mattarella met 64-year-old former-IMF official Carlo Cottarelli to discuss the list of technocrats Cottarelli wanted to form the cabinet of his uelectected, pro EU government. It was expected just 12 bureaucrats, without party affiliations, would make up the new government for the nation of 60 million people.
However Cottarelli left the Quirinal Palace in Rome on Tuesday late afternoon without making a statement about the composition of his government. This gave rise to speculation that, having been told by Lega and 5 Star leaders Salvini and Di Maio that their parties will block the legislative program of an appointed government, Mattarella will have to dissolve parliament in the next few days and call elections for the end of July.
The 5-Star Movement and the far-right League gave up their plan for government after Mattarella vetoed their choice for an economy minister.
Italy has the third-highest public debt in the world and Bank of Italy Governor Ignazio Visco warned it was "only ever a few short steps" from losing the trust of investors. This is not quite true, while Italy's financial markets have taken a knock as a result of the chaos, a far bigger backlash has hit the EU as once again Brussels has responded like an authoritarian dictatorship to a member state that did not march in step, and thus again revealed its contempt for democracy.
Italy's public debt totals €2.3 trillion euros ($2.7 trillion). That represents 132 percent of Gross Domestic Product (GDP) which is more than double the 60 per cent target imposed by Brussels on EU members.In an article for left wing UK newspaper The Guardian, former Greek finance minister Yannis Varoufakis explained that membership of the single currency system, the Euro, is largely responsible