The conflict between the Italian government and the “Troika” (the European Commission, European Central Bank, and International Monetary Fund) is making news headlines around the world. To understand fully the meaning of this clash and its consequences, we need to go back to the political earthquake of the 4 March elections.

A crunch point is approaching in the ongoing saga surrounding the highly-indebted Italian economy. This could spark a revival of the dormant euro crisis.

Italy’s public debt stands at a staggering €2.3tn, or 132 percent of GDP: the third largest in the world after Japan and Greece. Furthermore, Italy’s banks hold the largest share of Europe's non-performing loans, totalling €224bn. Unlike Greece, which is a relatively small player in Europe, Italy has the third-largest economy in the Eurozone, contributing more than 15 percent of its overall GDP. Italy has now become a huge risk to the financial stability of the whole of the European Union.

Three months after the 4th March Italian elections, the new government of the Five Stars Movement and the League (formerly Northern league) has finally been sworn in by by the President of the Republic and a whole new situation opens up where these parties will be put to the test. This experience will prove to be a necessary experience in exposing in the eyes of the Italian working class the real nature, particularly of the Five Stars Movement and prepare the ground for a new wave of class struggle.

There has been a series of new twists in the deepening Italian political crisis. Prime Minister Conte resigned after President Mattarella vetoed the appointment of Paolo Savona as minister of the economy. The president subsequently assigned the task of forming a government to [former IMF official] Carlo Cottarelli.

Mario Iavazzi, a supporter of Sinistra Classe e Rivoluzione [the IMT in Italy] intervened at the recent gathering of the National Committee of the CGIL (Confederazione Generale Italiana del Lavoro – General Confederation of Italian Labour – equivalent to the TUC in Britain, CGT in France or AFL-CIO in the USA). He openly criticised the leadership for its lack of a fighting programme and for its total lack of understanding of what happened in the recent Italian elections.

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