Italy’s Renzi will win weak endorsement in party vote

Significance

Although former Prime Minister Matteo Renzi is confident of winning, the PD, condemned after the 2013 general election to govern Italy without a majority, has faced growing problems of cohesion and electoral credibility since last December’s referendum defeat.

Impacts

• Local elections in June will indicate electoral sentiment towards the PD and M5S ahead of the general election in early 2018.
• Continued weak economic performance is fuelling populist sentiment and tying government hands.
• Tensions with the EU could increase when the government presents its 2018 budget later this year.