Italy Faces Yet Another Moment of Truth
Prime Minister Giuseppe Conte could scupper next week’s EU coronavirus talks unless he gets his way on coronabonds. But he has no real leverage.
My word is my coronabond.
Photo: Bloomberg
Two and a half years ago, Giuseppe Conte was an obscure lawyer and academic unknown to most Italians. Next week, this very unlikely prime minister will lead Italy’s most important round of European negotiations in nearly a decade.
The European Union’s political leaders will meet on April 23 to agree on a coordinated economic response to the Covid-19 pandemic, which has killed more than 65,000 people across the bloc. Italy’s economy is set to shrink by 9.1% this year, according to the International Monetary Fund. After a promising start, the government is struggling to put together a timely response because of administrative failures and concerns over the country’s very high debt levels.