In a panel discussion on the Dutch radio station BNR Nieuwsradio Bas Jacobs, Professor of Public Finance and Economic Policy at Erasmus School of Economics, discusses the consequences of rejecting Paola Savona, the euro sceptic candidate put forward by the League and Five Star Movement, as Minister of Finance.
The refusal by President Mattarella means that Italy will face new elections and it is feared that the outcome of such new elections will be even more problematic. The coalition had made some concessions in its current coalition programme, having cancelled their plans to insist on the remission of 250 billion of its debt and a potential Italexit, and it is not likely that the coalition will make the same concessions again. This might create political chaos in Italy as the plans proposed by the coalition will increase the countries budget deficit. Furthermore, since Italy is one of the biggest economies in Europe, this will be problematic for the euro area as a whole. Other panel members are Chief Economist Han de Jongh (ABN AMRO) and Chief Investment Officer Valentijn van Nieuwenhuijzen (NN Investment Partners)