How Recent The Resignation of Italy’s PM Threatens the EU With A Parallel Currency To The Euro

Just over a week ago the Italian prime minister, Gieseppe Conte, resigned. His resignation makes it very possible that elections will be held three and a half years ahead of schedule. The implications of this are potentially catastrophic for the future of the European Union and the global economy.

Conte’s downfall is seen as orchestrated by Matteo Salvini, the head of the right-wing League party. The possibility of elections this fall means that Salvini, whose party is soaring in opinion polls over the last year and just triumphed in the May European Parliament elections, may gain full control of the nation’s government.

Under the new election laws, put in place a few years ago to blunt the power of Euroskepic parties such as the League, one-third of parliamentary seats are allocated by first-past-the-post with the remaining two-thirds allocated proportionally. This keep these parties at bay initially, but now they have risen so much in the polls (the League was polling at 13% last year and is now polling at 37%) these rules will allow them to form a majority government without partners if they can achieve 40% of the vote.

The threat to Europe from the rise of the League is primarily from their plan to create a parallel currency for Italy called the mini-BOT. (Pictures of Proposed miniBOTs) This idea is a threat to the existence of the eurozone — and the stability of the entire global economy.