Italy govt collapse not end of the world - analyst

STORY: "So I wouldn't say this is the end of the world. I would say Italy will go on, we'll stay inside the Atlantic alliance, we'll be a trustworthy partner in the European Union, and Italy is going to govern itself economically," he said.

"That being said, certainly in these last 18 months, Draghi's presence has been very relevant in giving prestige and force to Italy, which has also been important in all the Atlantic and European negotiations. So I'm not saying this is not a loss. This is a loss but I wouldn't say this is an end-of-the-world loss," Orsina added.

The country might need early elections to overcome a political impasse.

President Sergio Mattarella rejected Draghi's resignation on Thursday (July 14) and asked him to address parliament next week to get a clearer picture of the political situation.

Draghi's 18-month-old government was thrown into turmoil by the populist 5-Star Movement, which boycotted a parliamentary confidence motion on Draghi's plans to tackle the growing cost of living, arguing they did not go far enough.

A national election is due in the first half of 2023 and bringing the vote forward would give parties little time to draw up manifestos and prepare their lists of candidates.

The 5-Star Movement is likely to come under heavy pressure from other coalition partners to back down in its confrontation with Draghi and allow his administration to see out the legislature, but there was no immediate sign of any shift in its position.

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