The premier resigned Thursday after three coalition allies withdrew their support for his government, shattering the unity which had propelled him into office in February 2021. Italy is likely to hold an early election in the fall, with a weakened Draghi continuing in a caretaker role to handle ongoing business until the ballot.
Ironically, his exit from power comes shortly before the tenth anniversary of his pledge on July 26, 2012, to do “whatever it takes” to keep the single currency in place.When he became prime minister, Draghi offered a boon to markets because he brought an impetus for reforms and temporary stability to Italy’s notoriously unstable politics.
The premier himself seemed to sense the crisis ahead when he spoke at a foreign press dinner in Rome on July 12. Standing under majestic pine trees in the gardens of a 17th century villa, he listed his efforts to change Italy, a kind of testament to his year and a half in office leading the euro area’s third-biggest economy.He noted how all EU recovery fund targets so far have been met, a prerequisite to unlock about 200 billion euros of grants and loans.