Italy Confidence Vote: Democratic Party source claims 'good' initial talks with 5-Star
Updated 13:48, 20-Aug-2019
Now a look at Italian politics. A source with the opposition Democratic Party says it has made initial and good contacts with the ruling 5-Star Movement, over the possibility of forging a coalition. The 5-Star's current coalition partner said it will present a no-confidence motion against Prime Minister Giuseppe Conte, to try to trigger a snap election. But the 5-Star declined to comment on any talks with the opposition. As the government deals with the political crisis, immigration remains a main challenge, and the economy and the upcoming EU budget are also high on the agenda. CGTN's Michal Bardavid reports from Milan.
Italy is facing several economic challenges. Following a technical recession in the second half of 2018, the International Monetary Fund is forecasting Italian growth to be just 0.1 percent this year.
The government is exploring solutions. The League and the 5-Star Movement are trying to avoid an increase in sales tax.
While trying to keep voters content – the government is also focused on the upcoming budget 2020 it needs to submit to the European Commission.
Last year following many debates – Italy had lowered its budget deficit target to 2.04 percent of GDP. On Monday the League stated it would aim to raise the country's deficit in the 2020 budget.
Experts emphasize that global economic dynamics are also impacting Italy and the EU.
DAVİDE CADEDDU UNIVERSITY OF MİLAN PROFESSOR & @HuffPostItalia BLOGGER "Try to imagine what will happen in September or October starting from the relations between Trump and China, war of duties, trade war. This is damaging the European economy, which is already in a difficult situation, and recently we are also seeing that Germany is showing less economic development compared to the previous years."
Meanwhile, some statistics showed a positive outlook for business.
MICHAL BARDAVID MILAN "According to Information services company HIS Markit, business confidence was on the rise in Italy in July, but Italian citizens have mixed feelings on the future of the country 's economy."
ITALIAN CITIZEN "Good proposals have certainly been made, such as the flat tax or lower the rates of IRPEF (Italian personal income tax) or taxes in general. The basic income did not have the desired effect and many citizens were disappointed, but there has been an attempt to improve the lives of many people."
Michal Bardavid, CGTN, Milan.