Italy Election: New electoral laws reach parliament as parties agree to deal

Italy’s new electoral law has reached the parliament for debate with its Constitutional Affairs Committee signed it off after main political parties have reached an agreement. If the new law passes through the parliament it could pave way for an early election in Italy, likely to be in September. Deputies began debating the law, which is based on proportional representation, and party leaders say they hope it can be approved in both houses in early July. In a rare show of unity, all the big parties voiced satisfaction with the system, which is similar to the one used in Germany.

The financial markets remain tensed with the prospect of Italian election as traders fear that the election could result in an inconclusive outcome. Opinion polls suggest no party is likely to win a parliamentary majority at an election and the formation of a coalition would be difficult as ideologies are too different. According to latest polls, the Eurosceptic Five Star Movement, led by Beppe Grillo is likely to win the highest numbers of seats replacing the ruling  Democratic Party led by the former Prime Minister Matteo Renzi.

The latest opinion poll suggests Five Star Movement of Beppe Grillo will win 30.1 percent of the votes, followed by 26.1 percent for the ruling Democratic Party of Matteo Renzi. The former Prime Minister Silvio Berlusconi’s Forza Italiana is expected to become the third largest party with 13.1 percent of the votes and the major Eurosceptic party Lega Nord led by Matteo Salvini is set to become the fourth largest party with 12.9 percent of the votes.