On ECB’s Policy Meeting Day, Italian PM To Announce Resignation

Italian Prime Minister Mario Draghi won a confidence motion in the upper house Senate on Wednesday, but three main coalition parties refused to take part in the vote, effectively dissolving his administration and he is said to announce his resignation in the chamber tomorrow.

The Euro has been pushed and pulled throughout the developments of the political turmoil as a government collapse would likely worsen social ills in a period of rampant inflation, war on the doorsteps of the euro bloc, delay the budget, threaten EU post-pandemic recovery funds and send jittery markets into a tailspin.

The motion asked the house to approve a speech made by Draghi earlier in the day when he demanded unity from his coalition allies. The vote was approved by 95 to 38 with many dozens of senators absenting themselves. An early election is now scheduled to take place in September.