Italian government at risk of collapse

5-Star Movement could withdraw from coalition

Italy's government is at risk of collapse after the coalition partner 5-Star Movement said it would not take part in a crucial vote on a cost-of-living bill in Parliament on Thursday.

Prime Minister Mario Draghi's administration is under pressure after other coalition parties warned they will quit the government if 5-Star boycotts the vote.

The prime minister said on Tuesday that the government could not survive without the support of the 5-Star Movement, effectively designating the vote as a matter of confidence.

Draghi is pushing the motion that contains 26 billion euros ($26 billion) in measures to help the Italian public manage rising costs.

The decision by 5-Star could also hinder efforts to secure billions of euros in European Union aid and reduce dependence on Russian gas, reported Reuters.

A government statement issued on Thursday confirmed that the vote would take place later in the day at the end of a debate on the bill in the Senate.

The rightist League and center-left Democratic Party (PD), which are both members of Draghi's coalition, said that elections were likely if the bill is not supported.

"If a coalition party doesn't back a government decree that's it, enough is enough, it seems clear that we should go to elections," said League leader Matteo Salvini.

The move brings political uncertainty just as Italy's economy is suffering from drought, soaring energy prices and rising borrowing costs, reported Politico.

On Wednesday, 5-Star leader and former prime minister Giuseppe Conte issued a statement confirming the party would not participate in the vote, saying that the government should be doing more to tackle growing social problems and that the funds set aside for a cost-of-living support package were insufficient.

"Draghi seemed willing to accommodate us but statements of intent are not enough. We need concrete measures," he said.

"I have a strong fear that September will be a time when many families will face the terrible choice of paying their electricity bill or buying food.

"We are absolutely willing to dialogue, to make our constructive contribution to the government, to Draghi, (but) we are not willing to write a blank cheque. Whoever accuses us of irresponsibility needs to look in their own backyard."

Draghi said this week that if the government lost the backing of 5-Star it would be President Sergio Mattarella's decision on what to do next. Reuters reported that Mattarella could persuade Draghi to stay on and ask him to quickly hold another formal confidence vote, or he could appoint a new short-term leader.