The third largest economy under the European Union also seems to be shaking. Italian Prime Minister Mario Draghi resigned two days ago amid rising inflation and debt crisis.
Germany has a trade deficit in Europe for the first time in 30 years. The situation of inflation is that now the trade unions are threatening to go on strike there. The effects of the deteriorating economy have been visible in France, where President Emmanuel Macron’s party lost its majority in parliamentary elections. British Prime Minister Boris Johnson and Estonia’s Prime Minister Keja Kalas had to resign recently. Kalas has again assumed power by forming a new alliance. But the country has entered political instability. Now the third largest economy under the European Union also seems to be shaking. Italian Prime Minister Mario Draghi resigned two days ago amid rising inflation and debt crisis. 74-year-old Draghi is a banker. He is credited with saving the euro currency during the 2008 financial crisis. He has also been credited with bringing economic stability to Italy. But the Draghi-led coalition has been torn apart amid the energy crisis created by the Ukraine war. At present, Italian President Sergio Matarella has not accepted Draghi’s resignation. But the political crisis is not over.
The Five-Star Party has parted ways with the Draghi-led coalition. It has refused to support Draghi’s economic reform program. Five-Star was the single largest party in the ruling coalition. This means that even if Draghi’s government survives now, it will not be able to provide stable governance. Rather, the power struggle will intensify in the coming days. General elections are due in Italy next year. Therefore, the parties involved in the ruling coalition do not want to be seen standing with such reforms, which will increase the burden on the common people. Economists have expressed concern that increasing political instability in Italy at this time of economic crisis is a bad sign. The euro, the currency of the European Union, has fallen to a record low in the past three months. Due to this concern has deepened in the countries falling in the Eurozone. This concern is only going to deepen.
