(Vatican Radio) Another big political shake up in Italy where the country’s Prime
Minister is expected to tender his resignation today. Listen to Tracey McClure's
report:
Prime Minister
Enrico Letta is due to hand in his resignation to President Giorgio Napolitano later
today – that following a show down Thursday with center left leader Matteo Renzi.
Renzi’s Democratic Party – the largest in Letta’s ruling coalition – voted to support
their 39 year old leader. Ever since he took over as head of the party in December,
Renzi, the mayor of Florence, has loudly criticized the government’s failure to push
through major reforms to right Italy’s ailing economy.
The shake-up marks Italy’s
third change of administrations in just one year and comes amid growing frustration
over the slow pace of economic reforms. Letta has only been in power since his appointment
last April to lead a cross party coalition stitched together after last year’s deadlocked
elections.
Financial markets have so far failed to react to the turmoil in
Italy – a stark contrast to the market volatility we saw after last year’s political
stalemate.
President Napolitano is expected to ask Renzi to form a new government.
The young Democrat leader has promised to loosen strict hiring and firing rules to
make businesses more competitive. Observers say he is less concerned than Letta too
about European budget rules, saying structural reforms should carry more weight than
rigid deficit limits.
If Renzi is named prime minister, he will be Italy’s
third unelected leader following Mario Monti and Letta.