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      in Elections

      Rome Mayor Loses Re-election Bid, a Defeat for Five Star Movement

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      In five years in office, Virginia Raggi failed to stem the dysfunction of Italy’s capital, where voters will choose between two of her rivals in a runoff.ROME — Voters on Monday resoundingly rejected the re-election bid of Rome’s mayor, Virginia Raggi of the Five Star Movement, who swept into power five years ago promising change but was unable to turn around the degradation of services and quality of life that has become a hallmark of the capital.Instead, Ms. Raggi, the first woman to govern Rome and its youngest mayor, became associated with the city’s decline, earning her — and her party — a national reputation for incompetence.Speaking to supporters at a hotel in downtown Rome late on Monday, Ms. Raggi appeared to concede defeat.“As they say in Rome, I took on the most difficult part of the job and I did it with conviction,” she said. “Now those who come after me have no more excuses for not doing a good job, and we’re going to be watching them closely.”She lagged well behind the two leading candidates: Enrico Michetti, a lawyer supported by several parties on the right, and Roberto Gualtieri, a former finance minister and the candidate of a center-left coalition led by the Democratic Party.With most election districts counted, Mr. Michetti had more than 30 percent of the vote, Mr. Gualtieri 27 percent and Ms. Raggi just under 20 percent. Carlo Calenda, a rival to Mr. Gualtieri to be the center-left standard-bearer, had about 19 percent.With no candidate winning more than half the vote, Mr. Michetti and Mr. Gualtieri will compete in a runoff election on Oct. 18. Ms. Raggi told her supporters that she would not openly back either man.“The vote is free,” she said. “Votes are not packages to move around, nor are citizens cattle to be taken to pasture.”Ms. Raggi was once a bright spot in the firmament of Five Star, an upstart anti-establishment party that had charmed Italians who were jaded with the country’s political class.But the city’s problems piled up on her watch, as did uncollected garbage, attracting swarms of sea gulls, crows, and even hungry boars. A pothole epidemic saw no fix in sight. Public buses caught on fire, and some cyclists complained that the bike lanes the mayor had installed were unsafe and poorly maintained.Then on Saturday night, just hours before polls opened, a 19th century bridge in a trendy Rome neighborhood caught fire. Investigators and experts are still looking into the causes of the fire, but the metaphor of Rome burning was not lost on Ms. Raggi’s critics.Municipal elections were held on Monday in over 1,000 Italian cities and towns, but it is not yet clear what they mean for national politics. The next parliamentary elections could be more than a year and a half away.Prime Minister Mario Draghi, an independent and the former president of the European Central Bank, has broad support in Parliament, but low voter turnout may be a reflection of general disaffection among the electorate. Only 48.8 percent of Rome’s electors went to the polls, about ten percent less than five years ago, and the national average fell just short of 55 percent, the lowest ever.Ms. Raggi’s fate was, in part, a reflection of her party’s. Five Star has hemorrhaged support since triumphant national elections in 2018, when it won the largest share of the vote and formed part of the governing coalition.“It’s one thing to promise changes when you’re in the opposition, another to transform them into effective policies when you’re in the government,” said Roberto Biorcio, a professor of political sociology at the University of Milan at Bicocca. “In this sense, she followed this downward trajectory.”In Rome, disillusionment with Ms. Raggi grew as she failed to build a strong team, frequently replacing top cabinet members, which paralyzed administrative decisions.“It was the continuation of a trend of the deterioration of the city,” said Giovanni Orsina, the dean of Luiss University’s School of Government.“Rome’s problems are all still there,” after five years of Five Star government, he said, citing the garbage crisis and the city’s notoriously ineffective transport system. “And now the bridge caught fire ahead of the elections.”Support for the Five Star Movement also eroded in other cities. In Turin, another big win for the party in 2016, its mayoral candidate finished a distant third.But center-leftists where the Five Star and Democratic Party were allied won their races outright in closely watched races in Bologna and Naples, giving a boost to former Prime Minister Giuseppe Conte, who was elected president of the Five Star in August. He has been pushing for these alliances, putting him on a collision course with more orthodox Five Star members who remain grounded in their anti-establishment roots.The outcome in various cities “suggests that where the Five Star and Democrats joined forces they can obtain some good results,” Mr. Biorcio said.Ms. Raggi may have lost her job, but she still has clout within Five Star, after being elected last month to the party’s governing body. And at 43, she is still young.“After being mayor of Rome for five years, it will be hard for her to go back to being a lawyer,” said Professor Orsina. “Now she’ll try to see if she’s able to parlay a different political future in the Five Star Movement.” More

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      in Elections

      Behind One New York Times Pulitzer: Hundreds of Journalists

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      When The New York Times was honored with the prestigious prize in the category of public service for its coverage of the coronavirus pandemic, it reflected the contributions of the entire newsroom.Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.This month, from a steep red staircase overlooking The New York Times’s newsroom, Dean Baquet, the executive editor, announced that the staff had won the Pulitzer Prize for public service for its coverage of the coronavirus.The Times, which has received 132 Pulitzers since they were first awarded in 1917, has won in the public service category, regarded as the most prestigious of the prizes, six times. Wesley Morris, a Times critic at large, also received a Pulitzer, his second, for criticism for his writing on the intersection of race and culture in America.The Pulitzer board recognized several facets of the coronavirus coverage. The Times reported early on the outbreak in China in January 2020. Tracked cases across the nation and the world through an intensive data project. Relayed developments 24 hours a day. Reported on the race to understand the virus and the failure of governments to respond. Documented racial and social inequities of the pandemic. Provided vivid accounts of suffering worldwide. And observed the monumental death toll.That coverage encompassed not just articles but graphics, video, data journalism, design, photography and podcasting. The effort drew upon the full resources of the newsroom, with many staff members putting themselves at personal risk and others taking on new roles to meet the demands of the coverage or provide support. And all of it was executed with nearly all employees working remotely and as The Times also covered the nation’s racial unrest, the impact of climate change and a tumultuous presidential campaign and election.Speaking to employees, many of whom were watching the livestreamed awards ceremony at home, Mr. Baquet, along with other newsroom leaders, reflected on what it meant to be honored at this time.“I just want to pause for a moment on the full power of these prizes and what they say about what you accomplished in a year when many of you suffered from your own loss and disruption,” he said. “Literally, hundreds of people had a hand in this coverage.”A key component of the coverage was a tracking project that compiled virus data on a variety of measures. The Times released the data, which has been used by medical researchers and government officials.More than 100 people from across the newsroom, as well as 50 freelancers and students, have worked on the tracking effort. Reporters and researchers filed more than 700 public records requests for data on populations like nursing homes and prisons. Engineers created a database to manage hundreds of data sources.The team has now published more than 3,000 daily tracking pages, covering subjects that include country, state and county trends, reopenings and vaccinations.“It was easily the largest and probably the most ambitious data project our newsroom has ever taken on,” Archie Tse, the graphics director, said.At the same time, the National desk helped reveal the disproportionate toll that the virus took on people of color. And when the overall U.S. death toll reached 100,000 people, a team of journalists marked the staggering figure with a front page consisting of victims’ names and biographical details.“We strove every day not to be so focused on the numbers that we forgot the people behind them,” said Marc Lacey, an assistant managing editor and the former National editor.On the Health and Science desk, journalists followed the efforts to explain how the virus spread, its effect on the body and the development of a vaccine. Members of the desk edited more than 1,100 online articles on the virus and assisted other journalists in the newsroom on hundreds more.“We covered Ebola and Zika, but none of us had ever experienced such a ravenous hunger for science news,” said Celia Dugger, the Health and Science editor.Some of the earliest work began with the International desk, which reported from the front lines in Wuhan, China, where the outbreak first emerged, then charted the failures in Italy and later examined the impact of the virus all over the world.The desk also was instrumental in the live briefing on the virus, a constantly updated news feed that would go on to involve multiple departments in the newsroom and that remains a staple of the coverage, more than 500 days later. Chris Buckley, a Times correspondent previously based in China, was on a train on his way to cover the lockdown in Wuhan in January 2020 when his editor called him and asked him to start writing for the live briefing. At the time, Mr. Buckley was skeptical: “Live briefing? About this story? From a train? So, that call was one of those reminders that sometimes our editors are actually right,” he said, joking.“Since then our coverage of Covid has never stopped.”Many of the leaders and staff members who played critical roles in the two Pulitzer Prizes this year gathered for the ceremony.Damon Winter/The New York Times More

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      in US Politics

      A global agreement on taxing corporations is in sight – let’s make sure it happens

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      For more than four years, France, Germany, Italy and Spain have been working together to create an international tax system fit for the 21st century. It is a saga of many twists and turns. Now it’s time to come to an agreement. Introducing this fairer and more efficient international tax system was already a priority before the current economic crisis, and it will be all the more necessary coming out of it.Why? First, because the crisis was a boon to big tech companies, which raked in profit at levels not seen in any other sector of the economy. So how is it that the most profitable companies do not pay a fair share of tax? Just because their business is online doesn’t mean they should not pay taxes in the countries where they operate and from which their profits derive. Physical presence has been the historical basis of our taxation system. This basis has to evolve with our economies gradually shifting online. Like any other company, they should pay their fair share to fund the public good, at a level commensurate with their success.Second, because the crisis has exacerbated inequalities. It is urgent to put in place an international tax system that is efficient and fair. Currently, multinationals are able to avoid corporate taxes by shifting profits offshore. That’s not something the public will continue to accept. Fiscal dumping cannot be an option for Europe, nor can it be for the rest of the world. It would only lead to a further decline in corporate income tax revenues, wider inequalities and an inability to fund vital public services.Third, because we need to re-establish an international consensus on major global issues. The Organisation for Economic Co-operation and Development, with the support of our countries, has been doing exceptional work in the area of international taxation for many years. The OECD has put forward fair and balanced proposals on both subjects: the taxation of the profit of the most profitable multinationals, notably digital giants (Pillar 1), and the minimal taxation (Pillar 2). We can build on this work. For the first time in decades, we have an opportunity to reach a historic agreement on a new international tax system that would involve every country in the world. Such a multilateral agreement would signal a commitment to working together on major global issues.With the new Biden administration, there is no longer the threat of a veto hanging over this new system. The new US proposal on minimal taxation is an important step in the direction of the proposal initially floated by our countries and taken over by the OECD. The commitment to a minimum effective tax rate of at least 15% is a promising start. We therefore commit to defining a common position on a new international tax system at the G7 finance ministers meeting in London today. We are confident it will create the momentum needed to reach a global agreement at the G20 in Venice in July. It is within our reach. Let’s make sure it happens. We owe it to our citizens.
      Nadia Calviño, second deputy prime minister of Spain, is the country’s economy minister. Daniele Franco is minister of economy and finance in Italy. Bruno Le Maire is France’s minister of economy, finance and recovery. Olaf Scholz is German vice-chancellor and minister of finance More

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      in US Politics

      US sets – and quickly suspends – tariffs on UK and others over digital taxes

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      The Biden administration announced 25% tariffs on over $2bn worth of imports from the UK and five other countries on Wednesday over their taxes on US technology companies, but immediately suspended the duties to allow time for negotiations to continue.The US trade representative, Katherine Tai, said the threatened tariffs on goods from Britain, Italy, Spain, Turkey, India and Austria had been agreed after an investigation concluded that their digital taxes discriminated against US companies.The move underscores the US threat of retaliation, first made under the Trump administration, over digital-services taxes on US-based companies including Alphabet, Apple and Facebook, that has sparked an international row over which countries should have taxing rights over some of the world’s largest companies.The US trade representative’s (USTR) office published lists of imports that would face tariffs if international tax negotiations fail to reach a solution. Goods from Britain worth $887m, including clothing, overcoats, footwear and cosmetics, would face a 25% charge as would about $386m worth of goods from Italy, including clothing, handbags and optical lenses. USTR said it would impose tariffs on goods worth $323m from Spain, $310m from Turkey, $118m from India and $65m from Austria.The potential tariffs, based on 2019 import data, aim to equal the amount of digital taxes that would be collected from US firms, a USTR official said. The news came as finance leaders from G7 countries prepare to meet in London on Friday and Saturday to discuss the state of tax negotiations, including taxation of large technology companies and a US proposal for a global minimum corporate tax. US tariffs threatened against France over its digital tax were suspended in January to allow time for negotiations.Tai said she was focused on “finding a multilateral solution” to digital taxes and other international tax issues.“Today’s actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future,” Tai said.Tai faced a Wednesday deadline to announce the tariff action, or the statutory authority of the trade investigations would have lapsed.A British government spokesperson said the UK tax was aimed at ensuring tech firms pay their fair share of tax and was temporary. “Our digital services tax is reasonable, proportionate and non-discriminatory,” the spokesperson said. “It’s also temporary and we’re working positively with international partners to find a global solution to this problem.”Reuters contributed to this article More

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      in US Politics

      ‘Momentous error’: Italian businessman mistakenly blacklisted by Trump to sue

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      A small business owner in Italy is preparing to sue the US Treasury after accidentally being put on a sanctions blacklist before Donald Trump left the presidency.Alessandro Bazzoni, who owns a graphic design company in Sardinia, has been unable to trade since 19 January, when his business was slapped with sanctions as part of the Trump administration’s crackdown on blacklisted Venezuelan crude oil.In a case of mistaken identity, the US Treasury erroneously blacklisted Bazzoni’s graphic design company, SeriGraphicLab, along with a restaurant and pizzeria in Verona owned by another businessman called Alessandro Bazzoni. Both were removed from the blacklist on 31 March. But while the restaurant owner’s bank account has been reactivated, the blunder led to the Sardinian businessman’s account being closed.“It was a momentous error on their part, and one that is having serious implications as it is preventing me from working,” he said.Bazzoni, who works independently, was able to withdraw the money that was in his account but can no longer trade because, as per Italian law, he needs a bank account in order to receive payments from clients. The absence of a bank account also means he cannot access the financial support he is entitled to receive as part of the Italian government’s Covid-19 relief scheme.“I have to go to another bank to see if I can open an account there,” he said. “But for now, I cannot sufficiently operate my business, so much so I have started to look for other jobs.”Bazzoni claims the US Treasury did not notify him about being on the sanctions blacklist, nor did it apologise for the mistake.“The only notification I got was from my bank telling me my account was closing,” he said.He has made a legal complaint to the Italian police, with the aim of suing the Office of Foreign Assets Control, a unit of the US Treasury.In 2019, Trump’s government imposed sanctions on Venezuela’s state oil company, Petróleos de Venezuela (PDVSA), in an attempt to force the resignation of the president, Nicolás Maduro, whom the US accused of corruption, human rights violations and rigging his 2018 re-election. On his last day in office, Trump sanctioned a network of oil firms and individuals tied to PDVSA.A US Treasury official told Reuters that the department realised the companies were owned by different individuals than the Bazzoni it blacklisted in January.The Guardian has contacted the US Treasury for a response to the Sardinian businessman’s case. “First and foremost, I want an apology,” said Bazzoni. More

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      in World Politics

      The Italian Job: Can Mario Draghi Master It?

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      A political crisis was the last thing Italy needed during the COVID-19 pandemic. Yet a personal conflict between the leader of Italia Viva, Matteo Renzi, and the previous prime minister, Giuseppe Conte, led to the collapse of the coalition in mid-January. President Sergio Mattarella then commissioned 73-year-old Mario Draghi, the former head of the European Central Bank (ECB), to form a technocratic government, which he will preside over as prime minister.

      According to Mattarella, it would have been risky to organize early elections during the pandemic. Indeed, new elections would have delayed the fight against the pandemic. In addition, the prospect of a right-wing populist government would also probably have had a negative impact on the financial markets — a risk that had to be avoided in an already challenging situation.

      Will Britain Become Scot-Free?

      READ MORE

      Draghi is inheriting a difficult situation. In Italy, the health, economic and social crises triggered by the pandemic have exacerbated the country’s enormous structural problems. Italy’s “seven deadly sins” — as Italian economist Carlo Cottarelli called them — are tax evasion, corruption, excessive bureaucracy, an inefficient judicial system, demographic problems, the north-south divide and difficulty in functioning within the eurozone. As a result of the pandemic, gross domestic product (GDP) fell by almost 9% in 2020, public debt rose to around 160% of GDP and more than 400,000 jobs were lost. The inability of the traditional parties to find solutions for the economic problems keeps support for the right-wing populist coalition (Lega, Fratelli d’Italia, Forza Italia) at almost 50%.

      Even though almost all major political forces have declared their intent to cooperate with the Draghi government, the framework of a technocratic government offers the right-wing populists a target. It is quite conceivable that they will accuse Draghi of lacking democratic legitimacy. It will also be a challenge for the new head of government to govern without his own parliamentary majority.

      Managing the Health Crisis Without Austerity

      The top priority of the new leadership will be to manage the health crisis. This includes speeding up vaccinations and supporting schools and the labor market. This means applying for — and successfully using — funds from the financial assistance plan of the European Union to mitigate the economic and social consequences of the COVID-19 pandemic. The expected €200 billion ($243 billion) or so from this fund could benefit the economic recovery as well as the planned structural reforms in public administration, taxation and the judiciary, which will give the new government more room for maneuver in economic policy.

      Unlike the last technocratic government under Mario Monti between 2011 and 2013, the fact that Draghi will not have to enact politically-costly fiscal consolidation with possible negative effects on GDP growth can also be seen as an opportunity. This is mainly due to broad market confidence in Draghi and the fact that his government is operating from the outset under the protective umbrella of the ECB, which will not allow the cost for servicing public debt to rise excessively. The eurozone’s fiscal rules have also been temporarily suspended; this makes it possible to support the economy through fiscal policy measures.

      Finally, it should not be forgotten that, despite the structural problems, the Italian economy has many strengths: Italy is one of the most industrialized countries in Europe and the second-largest exporter after Germany. If some obstacles to growth are removed and, for example, credit is released by the Italian banking sector, the pace of recovery could pick up significantly. Draghi’s experience from the finance ministry and in central banking could help him set a decisive course.

      Who Will Succeed Mario Draghi?

      Nevertheless, given the major challenges facing Draghi’s technocratic government, one should be cautious about expectations. The next general election is less than two and a half years away, and it cannot be ruled out that it will be brought forward. That is very little time to address structural problems that have existed for decades.

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      To avert a victory for the right-wing populists, the new head of government will do everything he can to prevent early parliamentary elections until the current moderate majority in parliament has elected President Mattarella’s successor. The latter’s term ends in February 2022, and it cannot be ruled out that Draghi himself will succeed Mattarella. He could use his authority and power as president to stabilize politics, as is the traditional role of the Italian president.

      In 2012, Draghi saved the eurozone as head of Europe’s most important financial institution. In the current crisis, even if supported by figures from across a broad political spectrum, he will act as head of one of Europe’s most politically-fragile governments — an incomparably less favorable starting position.

      Draghi will make the best possible use of his time as head of government. That much is certain. However, given the massive level of support for the populists, the most important question is: After Draghi, will someone take the helm who will continue his reforms or reverse them? Not only Italy’s future but also that of the entire eurozone depends on it.

      *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions relating to foreign and security policy.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in Elections

      Mario Draghi Is Asked to Form Government in Italy

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      #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesSee Your Local RiskVaccine InformationWuhan, One Year LaterAdvertisementContinue reading the main storySupported byContinue reading the main storyMario Draghi Gets Nod to Form New Government and Guide Italy Out of CrisisThe sudden ascent of the man credited with helping save the euro was a pipe dream for Italians frustrated with a coalition paralyzed by ideological schisms and incompetence.Mario Draghi, the former head of the European Central Bank, knows well the machinery of government at both the European and Italian level. Credit…Andrew Medichini/Associated PressFeb. 3, 2021Updated 8:43 a.m. ETROME — Mario Draghi, the former head of the European Central Bank who is largely credited with helping to save the euro, accepted a mandate from Italy’s president on Wednesday to try and form a new unity government that would guide the country out of the pandemic and through economic recovery.“To overcome the pandemic, to complete the vaccine campaign, to offer answers to the daily problems of the citizens, to relaunch the country are the challenges we face,” Mr. Draghi said after meeting with President Sergio Mattarella for more than an hour at the Quirinal Palace. Italy, he said, faced a “difficult moment.” And he said he had accepted Mr. Mattarella’s appeal because the emergency “requires an answer equal to the seriousness of the situation.”Until as recently as Tuesday, the idea of Mr. Draghi replacing Giuseppe Conte as prime minister remained a pipe dream for the many Italians frustrated with a governing coalition that seemed paralyzed by ideological schisms and incompetence, especially as the coronavirus pandemic raged and economic devastation set in.But on Tuesday evening, Mr. Mattarella summoned Mr. Draghi and appealed to “all the political forces in the Parliament” to support a “high profile government” to meet the historic moment.He made it clear Mr. Conte’s tenure was over and the new players, potentially political leaders proposed by the parties supporting Mr. Draghi or an all-star cast of politically unaffiliated economists, judges and scientists, was ready to take the stage.Italy’s stock market rallied on Wednesday in response to the news that Mr. Draghi had been lined up to lead the Italian government. He immediately began consultations with party leaders that will continue in the coming days in an effort to form a new Italian government.“I am confident that from the exchange with the parties and the groups in the Parliament and from the dialogue with the social forces,” Mr. Draghi said on Wednesday, “there will emerge unity and the capacity to give a responsible answer to the president’s appeal.”Mr. Draghi is himself no political novice. He has served in past Italian governments, was a director of Italy’s treasury and knows well the machinery of government at both the European and Italian level.His name has been mentioned for years as a potential candidate to replace Mr. Mattarella as Italy’s head of state in 2022. But now Mr. Mattarella himself has called on Mr. Draghi, whom he has publicly praised in the past, and brought him directly into the fray.“Now everyone of good will must heed the call of President Mattarella and support the government of Mario Draghi,” Matteo Renzi, the wily former prime minister who engineered the collapse of Mr. Conte’s government by pulling his small party’s support in Parliament. “Now is the time for sobriety.”A former prime minister, Matteo Renzi, triggered the previous government’s collapse.Credit…Pool photo by Alessandro SerranoParty leaders on the right and left quickly expressed support for Mr. Draghi after it became clear that Mr. Mattarella would ask him to form a government.Among them were leaders who had made great shows of their loyalty to Mr. Conte. Nicola Zingaretti, the leader of the Democratic Party that Mr. Renzi once led, released a statement that on the one hand referred to the government crisis as a “disaster provoked by the irresponsible choice” of Mr. Renzi, but he then welcomed Mr. Mattarella’s decision. “We will stand ready to discuss the common good for the country.”The Coronavirus Outbreak More

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      Giuseppe Conte to Resign as Italian Prime Minister

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      #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesVaccine InformationTimelineWuhan, One Year LaterAdvertisementContinue reading the main storySupported byContinue reading the main storyItaly’s Prime Minister to Quit, Adding Political Chaos to PandemicPrime Minister Giuseppe Conte’s government is likely to collapse, leaving Italy in an uncertain political situation with Covid-19 infections still very high.Prime Minister Giuseppe Conte of Italy, center, addressing the Senate in Rome on Tuesday.Credit…Alessandro Di Meo/EPA, via ShutterstockJason Horowitz, Gaia Pianigiani and Jan. 25, 2021Updated 5:15 p.m. ETPrime Minister Giuseppe Conte of Italy will offer his resignation on Tuesday, his office said on Monday evening, likely leading to the collapse of Italy’s teetering government and plunging the country deeper into political chaos as it faces a still serious coronavirus epidemic and a halting vaccine rollout.Mr. Conte’s resignation will put Italy back in the familiar situation of government instability, but in extraordinary times, with tens of millions of Italians struggling to stay healthy and get by under pandemic restrictions and a deep, global recession. The coronavirus has killed more than 85,000 Italians, one of the world’s highest death tolls. The government, which was making slow but steady progress in vaccinating public health workers, has hit a speed bump and threatened to sue Pfizer for a shortfall in vaccine doses.What will happen after Mr. Conte offers his resignation to President Sergio Mattarella remains unclear. Mr. Conte could remain in charge, heading a new governing coalition with a different lineup of parties, but the possibilities also include a more thorough reorganization under a different prime minister, or even elections to choose a new Parliament.Mr. Conte, who is serving his second consecutive stint as Prime Minister — first as the head of an alliance of right-wing nationalists and populists, and then as the leader of a coalition of populists and the center-left establishment — desperately wants to stay in power.But last week, Matteo Renzi, a wily former prime minister and critic of Mr. Conte, unexpectedly pulled his small center-left party out of the government, depriving it of majority support in the Senate. Mr. Conte, who leads a coalition of the populist Five Star Movement and the center-left Democratic Party, has been unable to attract enough new support in Parliament to replace the votes Mr. Renzi took away.Mr. Renzi said he withdrew from the coalition to protest Mr. Conte’s management of the epidemic, his lack of vision in deciding where to allocate hundreds of billions of euros in recovery funds that Italy is set to receive from the European Union, and his undemocratic methods in icing out Parliament by relying on unelected task forces.A food distribution site in Milan earlier this month. The pandemic has devastated Italy’s economy.Credit…Alessandro Grassani for The New York TimesBut many here instead saw Mr. Renzi as performing a complicated political maneuver designed to take revenge on his enemies and gain more influence in the government, perhaps even in a third consecutive government led by Mr. Conte.Mr. Mattarella, the Italian president, is imbued with extraordinary powers during a government crisis and has several options for resolving the crisis.He could, in theory, ask the current coalition to continue, but it is seen as all but certain that he will accept that the government has collapsed. He could task Mr. Conte with forming a new government, which would essentially require the support, and appeasement, of Mr. Renzi’s party, with or without him. That would lead to what was in essence a glorified cabinet reshuffle.On Monday night, a third Conte government seemed, at least publicly, to be the governing coalition’s first choice.Nicola Zingaretti, the leader of the Democratic Party, which Mr. Renzi once led, said in a Twitter post Monday evening that he was “with Conte for a new government.” The Coronavirus Outbreak More