Again Italy is in the middle of a political crisis with polls opened in Emila Romagna, an important zone near Milan. Polls give hope to Matteo Salvini’s Northern League to return in power.
The center north region, Emilia Romagna was Democrats bastion for at least 70 years and while in the cities the center-left Democratic Party (PD) still holds the biggest support, in towns the right-wing, Northern League seems to have gained strong support.
The actual government is composed by the center-left Democratic Party (PD) in coalition with the Five Star Movement (M5S).
The M5S leader, Luigi Di Maio, who led his party in the 2018 victory while putting Salvini in power, has stepped down in an attempt to calm the turmoil that resulted in losing half of the support the M5S had before the coalition with the Democratic Party.
Prime Minister Giuseppe Conte has dismissed fears of a government crisis should the League triumph in Emilia Romagna, saying the election concerns the region alone and has no bearing on national politics.
However many think that an eventual victory of the Northern League in Emilia Romagna could create concerns about the EU future. Bitcoin had a sudden jump today probably caused by these concerns of political stability in one of the biggest countries of the European Union.
Bitcoin price, January 26, 2020, Tradingview.com
Salvini is a populist known for his anti-migrant law and the anti-euro position. The Italian government, which is based on weak coalition risks to collapse bringing in power Salvini which is actually leading the polls.
A return of Salvini in power of Italy might be a big problem for Europe with the “Italexit” narrative that he brings back in a country once ruled by Mussolini who allied with Hitler.
For what reason would Italians bring back a Mussolini-lite in power? Is the economic crisis that is bringing populists in power?
Bitcoin seems to react as a safe haven in times of concerns of geopolitical and economic stability. It is worth to mention that bitcoin price surged immediately after the Iranian missile attack.